AEF Drop of Zanzibar Limited

completed

SUMMARY OF  PROJECT INFORMATION (SPI)Project name Tanzania-Drop of Zanzibar LtdRegion Sub-Saharan AfricaSector ManufacturingProject No 008101Projected Board Date May 15, 1997Company Name: Drop of Zanzibar LtdTechnical Partners and/or Major Shareholders: Mr. Bruno Conti, Italian (25%), proposed Managing Director, Mr. Walter Rigo, Italian (15%), proposed Production Manager, Mrs. Nadia M. Mohammed Rigo, Zanzibari (10%), experienced businesswoman and  Panafric Construction Corporation, Liberian (50%), Investment company. Project Cost including proposed IFC Investment: Project cost: US$1.25 million IFC Investment: US$400,000Location of Project and Description of Site:  The project is located  in Mgenihaji area in Central District of Zanzibar.  The project area covers 5 hectares having 5 different water veins.  The factory site is on the main road linking the city of Zanzibar to Uroa Bay, at about 15 kms from the city centre.Description of Company and Purpose of Project:  Drop of Zanzibar Ltd. is a new company that is in the process of establishing a mineral water processing and bottling plant. The project will be located in Zanzibar and will have a capacity of 2,300 bottles per hour. Water will be sourced from several wells on a 33 year concession basis by the Government. The total cost of the project is estimated at US$1.25 million of which IFC has been approached to provide a loan of US$400,000.Developmental Impact: The project will create direct employment for 45 people; add value to a natural resource - water; and save substantial amounts of foreign exchange through import substitution.IFC Role: (a) IFC is to provide medium term loan finance which is not readily available in Zanzibar or Tanzania; (b) Provide catalytic effect by encouraging the foreign investors to go ahead with the project whose success will attract more foreign investors in Zanzibar; and (c) provide technical assistance (through its consultant) with regard to environmental protection and water quality management issues.    Environmental Categories and Issues: Category B. Key environmental health and safety issues include water supply sustainability and impacts on other users, area hydrogeology, product quality monitoring, waste disposal, power supply, employee training and general housekeeping. Draw down tests of the aquifer were completed in determining the appropriate water extraction rates. Waste from operations will be disposed of via local services.  The Environmental Review Summary is expected to be available on April 14, 1997 from the Public Information CenterDate SPI sent to PIC April 9, 1997For additional Information contact:  Corporate Relations Unit - Telephone (202) 473-7711- facsimile:(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).