AEF Milcafe Limited

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project name Tanzania-Milcafe LimitedRegion Sub-Saharan AfricaSector AgricultureProject No. 007482 Projected Board Date May 20, 1996Company Name Milcafe LimitedTechnical Partner and/or Major Shareholders: The Company is owned by Interchem Pharma Limited (70%) and Edm. Schluter & Co. AG Switzerland (30%). Interchem, which was founded in 1987, is a large Tanzanian pharmaceutical manufacturing company. Edm. Schluter, a Swiss holding company, has been engaged in coffee trading since 1980.Project Cost including proposed IFC investment Project Cost: US$ 1.60 million equivalent IFC Investment: US$ 0.45 million loanLocation of Project and Description of Site: The project’s facilities are located in Moshi, Tanzania.Description of Company and Purpose of Project: Milcafe Limited started operations in 1993 by buying coffee at auction and exporting it to Europe. Following the industry’s liberalization, the company began to purchase parchment coffee directly from growers and arranged to have the coffee contract milled by the government-owned Tanzania Coffee Curing Company (TCCC) at Moshi, before export. Because of its success, the company has decided to operate its own coffee milling machinery. In addition to processing its own coffee, Milcafe will process coffee for associated companies and other traders on a contract basis. Milcafe will provide an alternative vehicle to the government-owned company for milling coffee. This should accelerate the liberalization of coffee marketing and processing, which in turn is expected to benefit smallholder growers. The project would also increase the value of coffee exported due to improved milling standards. In addition, the project will generate additional employment. Environmental Categories and Issues: This is a Category B project according to IFC’s environmental review procedure. Environmental, health, and safety issues associated with this project include solid waste disposal, dust emissions, employee safety and training, fire protection, and general housekeeping. The company has submitted an environmental, health and safety management plan that satisfactorily addresses these issues. The ERS will be in the PIC by April 15, 1996.Date SPI sent to PIC April 8, 1996For additional Information contact: Corporate Relations Unit - telephone (202) 473-7711 - facsmile: (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).