Pesquera Diamante S.A.

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Project Number: 
PE1060B-01
Expected Consideration Date by the Board: 
04/25/2006
Date Posted: 
03/24/2006
Company: 
Pesquera Diamante S.A.
Financing Requested: 
Sector: 
Aquaculture and Fisheries
Location: 
Country: 
Scope Objective: 

Pesquera Diamante produces fishmeal and its byproduct, fish oil. It has a fleet of twenty-four fishing vessels and five plants located in Callao, Pisco, Supe, Samanco, and Mollendo. Fishmeal is processed in steam drying lines equipped with direct flame dryers (for FAQ/flame dried quality products). The IIC loan of up to US$8 million will be used to refinance the short-term debt incurred by the company when it expanded its fleet, and to refinance other short-term debts. The IIC loan will enable Pesquera Diamante S.A. to improve its funding structure, adapt is repayment flow to natural business cycles, and thus ensure proper cash flow management.

Environmental Review: 

Environmental Classification and Issues:

Rating

This is a category III project according to the IIC’s environmental and labor review procedure because specific impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, and design criteria. The environmental and labor considerations related to the project include liquid effluent management, air emissions, solid waste, product quality control and safety, fire protection, personal safety, and emergency response.

Third-Party Certification of Good Industrial and Environmental Practices

Pesquera Diamante is GMP (Good Manufacturing Practice) certified; five of its plants are HACCP certified; and ISO 14001 certification is pending for the Pisco plant. Its operations are certified by the Business Alliance for Secure Commerce (BASC), a global organization that works to combat drug-trafficking, merchandise smuggling, and terrorism with deterrence and prevention training programs for businesses.

Liquid Effluent Management

The main environmental impact results from the pumping water used to unload the catch from the fishing vessels to the plant, a process that ensures rapid transport and minimal damage to the raw material. Pesquera Diamante is replacing its old pumping systems, which have a 2.5:1 water-to-fish ratio, with more modern equipment that has a 0.7:1 ratio. The water is treated through a solid recovery process using a high-frequency vibrator and rotating filter. The recovered solids are mixed in with the raw material for processing. The liquid effluents are then subjected to a flotation process that uses microbubble-injected air to recover the fats as froth. The water is separated and discharged with nozzle/diffusers at points of the ocean where depth (> 10 meters) and current conditions permit dilution ratios greater than 200:1. Concentrations near the discharge point are therefore comparable with baseline standards for receiving waters and do not affect natural biological activity. The Pisco plant’s underwater outflow pipe, thirteen kilometers long and at a depth of forty meters, was built in conjunction with seven other plants operating in the same area. Washwater from the plant is mixed with the pumping water before it is discharged into the ocean.

Sewage is treated separately and each plant uses a different process, i.e., sewer systems, septic tanks, and percolation tanks.

Effluents from the fishing vessels are processed in accordance with international standards (MARPOL). Hydrocarbons, bilge water, and oily mixtures are taken to land and collected by an authorized treatment company.

Air Emissions

The direct flame dryers and the boilers that power the steam dryers run on fuel oil (Bunker R500). The boilers are equipped with a soot separation system that reduces particulate generation. The plant generator engines and the fishing vessels use diesel fuel that contains less than 50 ppm of sulfur.

To reduce odors, steam from the indirect steam dryers is used to power the evaporators in the stickwater plants. The direct flame dryers have countercurrent gas scrubbers that use seawater. Because the plants are located in industrial or port areas and far from residential zones, there are no complaints about odors from the community.

Solid Waste

The plant generates both hazardous and non-hazardous waste, which is treated separately. Non-hazardous waste is collected by municipal authorities or by an authorized company. Hazardous waste is sent to areas specially designed to prevent leaks and spills, where it is collected by authorized companies (EPSs) for treatment and final disposal.

Product Quality Control and Safety

Pesquera Diamante has established management and control procedures in the following areas: water supply quality and safety, plant and services cleanliness and safety, cross-contamination control, product handling and labeling, employee health, and pest control. It engages the services of SGS to certify the quality of its products.

Occupational Safety and Health

The company’s internal safety and health regulations include contingency plans for earthquakes, tsunamis, fires, occupational accidents, and terrorist attacks. Brigades designated to respond to these events are coordinated by the plant superintendent. Company regulations also establish basic standards for accident prevention, equipment use, and personal protective equipment.

The plants have alarm and loudspeaker systems for emergencies, sprinkler systems, and fire extinguishers. The fuel storage tanks have retaining walls to prevent spills. Fishing vessels are inspected annually by the Dirección General de Capitanías y Guardacostas.

All employees are covered by Peru’s social security health insurance (ESSALUD). Employees who work on the fishing vessels have complementary workers compensation insurance (SCTR).

Labor Practices

Pesquera Diamante is in compliance with national labor laws and International Labor Organization (ILO) standards. These include social security benefits, freedom of association, organization of workers’ unions, prohibition of forced labor and exploitative and abusive child labor, and nondiscrimination in the workplace. Fishing vessel employees belong to Peru’s fishermen’s union, Sindicato Único de Pescadores de Nuevas Embarcaciones Pesqueras del Perú (SUPNEP). The company has a work agreement with SUPNEP and the association of fishing vessel owners, Asociación de Armadores de Nuevas Embarcaciones Pesqueras (AANEP).

Control and Follow-Up

Pesquera Diamante shall develop an Environmental Management Plan (EMP) satisfactory to the IIC to ensure compliance with domestic regulations and the IIC’s environmental and workplace safety and health guidelines. The EMP shall provide for a yearly report on liquid effluent and solid waste management; health, occupational safety, and emergency response training; and accident reporting.