AEF Locland Limited

completed

Summary Of Project Information (SPI)Project NameKenya: Locland Limited     RegionSub-Saharan AfricaSectorProject No009056Projected Board DateJune 30, 1998Company NameLocland LimitedTechnical Partner and/or Major Shareholders The Company is owned by Mrs. Sonal A. Patel 50% and her husband Mr. Ajit B. Patel (50%).  Proposed technical partners are Messrs Nature Flora and H. Hamer. Sunripe Ltd will be the marketing agents.Project Cost Including proposed IFC investment Project Cost        : US$ 1.5 million      IFC loan Investment : US$ 600,000           Location of project and Description of site The project is located at Kitengela, 32 km from Nairobi, off the Nairobi-Arusha highway.  The farm has a gentle scope and covers an area of 30 Ha.     Description of Company and Purpose of Project The company is involved in horticultural production.  It started its operations late in 1996.  Since then, it has expanded production and about 15 Ha of the farm is under production of various vegetables for export.  The purpose of the project is to expand its product range by setting up 3 Ha of sweet peppers and 3 Ha of eustoma flowers under greenhouse conditions over a 2 year development period.IFC Role :  IFC is to provide a long term foreign currency financing and technical assistance in project preparation.Development Impact:  a) the project will create an additional employment of 110 workers; b) earn about US$ 900,000 per annum of foreign exchange for the country; and c) provide a demonstrative effect on growing of other varieties of horticultural products.Environmental Category and IssuesThis is an environmental review category B project.  Environmental and occupational health and safety issues include pesticides handling and application, integrated pest management, water supply, waste disposal, protective equipment and training, pesticide container disposal, and CFCs.  Locland has implemented Integrated Pest Management measures and closely monitor pest levels.  Water drawn from boreholes will not impact other users, and water will be provided free to local herders.  Training and safety equipment will be provided to all employees.  Only permissible chemicals will be used The  is  May 15, 1998 from the Public Information Center.Date SPI sent to PIC May 1, 1998“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors.  It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact:  Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384L:\CAF\AEF\KEN\loclandspi.DOCApril 30, 1998 12:07 PMEnvironmental 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).