AEF Equitea EPZ Company Limited

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Kenya-Equitea Co. Ltd.Region Sub-Saharan AfricaSector AgribusinessProject No. 007366Projected Approval Date June 14, 1996Company Name Equitea Co. LimitedTechnical Partner and/or Major Shareholders:   A group of Kenyan and European nationals including Mr. Luc Pinard, Mr. Esmail Zainool, Mr. Adrian Archer, a tea industry expert, Mr. Callistus Alles, with experience in tea manufacturing, and Pegasus Tea Ltd., a Kenyan tea trading company, are the project’s promoters.Project Cost including proposed IFC investment Project Cost: US$1.24 million equivalent IFC Investment: US$0.40 million (loan)Location of Project and Description of Site:   The project will be located in the Athi River Export Processing Zone in Nairobi.Description of Company and Purpose of Project:  The project involves the establishment of a blending and packaging unit for high grade East African teas.  The project is expected to produce 205 tons of tea per annum for export to Germany, France, and other European markets.  IFC, by supporting the first high grade tea blending and packaging export oriented project in East Africa, is expected to play a catalytic role.  Furthermore, the project is expected to have a positive developmental impact by: (i) generating foreign exchange earnings of about US$1.8 million per annum; (ii) adding value to locally produced tea; and (iii) creating 40 additional jobs.Environmental Categories and Issues:  This is a Category B project according to IFC’s environmental review procedure.  Environmental issues associated with this project include liquid and solid waste disposal, fire and explosion prevention, housekeeping, ventilation, provision of personal protective equipment, and employee safety and training.  The sponsors have submitted an environmental management plan addressing the issues listed above.  Based on the review and finalization of this plan, an ERS will be drafted for release to the PIC.  The ERS is expected to be released on April 24, 1996.   Date SPI sent to PIC April 23, 1996For additional Information contact:  Corporate Relations Unit - telephone (202) 473-7711 - facsimile: (202) 676-0365.Environmental 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).