AEF Kenya Deras Limited

completed

SUMMARY OF  PROJECT INFORMATION (SPI)Project name Kenya-Deras LtdRegion Sub-Saharan AfricaSector ManufacturingProject No 008078Projected Board Date April 3, 1997Company Name: Deras LtdTechnical Partners and/or Major Shareholders: The company is owned by Mr. Steven Hamawi (50%) and Mrs. Xenia Hamawi (50%).Project Cost including proposed IFC Investment: Project cost : US$3.9 millionIFC investment : US$1.0 millionLocation of Project and Description of Site: The project is located off Kangundo Road in Njiru township approximately 20 kms from Nairobi city center.Description of  Company and Purpose of  Project: Deras Ltd is a major hides and skins processing company in Kenya.  In 1982 it established a tannery with a capacity of processing 150,000 hides and 1.5 million skins/annum up to wet blue and crust stages for the export market.  It also installed finishing equipment to manufacture leather for the local market.  It requires additional investment for the procurement of finishing and balancing equipment to enable it to manufacture export quality finished leather.  IFC has been approached to provide a US$1 million loan to finance the additional equipment.Developmental Impact: The project will earn the country a substantial amount of foreign exchange; it will create additional employment for 160 people; and provide a stable market for the hides and skins supplied by rural farmers, thus assuring them of a source of income.IFC Role: IFC’s role is to provide a medium term loan which is not readily available at reasonable cost in Kenya, to attract a local bank to provide a sizable working capital facility, and to assist in the proper planning of environmental protection.Environmental Categories and Issues: Category B.  Environmental issues include liquid and solid waste treatment and disposal, air emissions and odor, and chromium recovery.  Occupational health and safety issues include employee exposure to pathogens and parasites from animal hides, hazardous material and fire prevention and emergency evacuation.  Primary effluent treatment systems are in place at the plant, and upgrading of these systems are planned.  Effluent undergoes further treatment at central municipal service locations in Nairobi.  The ERS is expected to be available at the Public Information Center on or about March 7, 1997Date SPI sent to PIC March  3, 1997For additional Information contact:  Corporate Relations Unit - Telephone (202) 473-7711- facsimile:(202) 676-0365IFCSPI 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).