AEF Cahora Bassa Fisheries Lda (CBF)

completed

Summary Of Project Information (SPI)Project NameMozambique-Cahora Bassa Fisheries, Lda. (CBF)RegionSub-Saharan AfricaSectorProject No007473Projected Board DateApril 10, 1996Company NameCahora Bassa Fisheries, Lda. (CBF)Technical Partner and/or Major Shareholders CBF is a Mozambican-registered company. 73% of the shares are jointly held by Anthony Stead and Ashley Walsh, both Zimbabwean nationals. Mr. Stead owns an engineering company in Harare, Zimbabwe. Mr. Walsh, who oversees the current operations, will be General Manager of the project in Mozambique. He will manage both CBF and CPT (Companhia de Pescas de Tete). The other 27% of the shares are jointly owned by Israel Franca and Caesar Bento, both Mozambican nationals. Project Cost Including proposed IFC investment Total Project cost is estimated at US$413,000 equivalent and IFC has been asked to provide a loan of US$205,000.Location of project and Description of site CPT will fish, mainly for Kapenta, on Lake Cahora-Bassa. It will have a landing, and fish drying and packing facilities at a site in the central region at Manyere Island on Lake Cahora Bassa. This is located 35kms from the main fishing area of Chikowa. The lake is a man-made reservoir, over 250 kms long and up to 50 kms wide, on the lower Zambezi River above the Cahora Bassa high dam.Description of Company and Purpose of Project CBF already operates five Kapenta fishing rigs on the lake. Kapenta, small sardine-like fish which travel in large shoals and which have become established in the lake, are caught and landed at CBF’s site where they are sun-dried and exported mostly to the main population centers in Zimbabwe. The project is for the expansion of the fleet from five to ten rigs and the improvement of the shore-based facilities. As one company is only allowed five rigs, CPT, the new company, will use the five new licences by leasing the rigs from CBF. CPT will sell all its produce to CBF who will be responsible for all the marketing of the Kapenta. The main markets for the increased output will be in Zimbabwe and Zambia where Kapenta is a highly popular, low cost food, very high in protein content. The project will employ over 40 people. The project will have a significant impact on the region in view of the war situation which prevailed in the region for over two decades. This resulted in the destruction of infrastructure and disrupted commercial and other activities. Apart from providing low cost food, employment will be created especially for unskilled local people. IFC’s role is to provide the shortfall in finance to bring the project to reality considering the acute lack of term financing in Mozambique. Environmental Category and Issues This is an environmental review category B project. Environmental and occupational health and safety issues include: sustainable fishing, waste disposal, CFC’s (if the sponsors decide to build a cold room), general housekeeping and safety issues, and emergency preparedness. Sustainability of fish stocks is not, at this stage, an issue as fishing fleets and processing plants on Lake Cahora Bassa are relatively small and undeveloped as compared with Lake Kariba for instance. IFC and CBF have been in touch with the Government concerning the fleet carrying capacity of the lake, the issue of sustainibility will be closely monitored. The sponsor is preparing a liquid and solid waste disposal plan for fish drying and processing operations, and an outline of their proposed occupational health and safety program (incorporating the fishing fleet and processing operations).The is March 13, 1996 from the Public Information Center.Date SPI sent to PIC February 23, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).