AEF Notacam S.A.

completed

Summary Of Project Information (SPI)Project NameCameroon-Nouvelle Tannerie du Cameroun (NOTACAM)     RegionSub-Saharan AfricaSectorProject No007395Projected Board DateApril 16, 1996Company NameTannerie Nouvele du CamerounTechnical Partner and/or Major Shareholders Mr. Youssoufa Siddiki and his family with 85% of the Company’s shares.Project Cost Including proposed IFC investment Total project cost is estimated at US$2,300,000 equivalent and IFC has been asked to provide a loan of US$720,000.Location of project and Description of site The project is located on a 2 hectare plot in the industrial zone of Maroua in the Far-Northern Province of Cameroon. Administrative offices and plant equipment are housed in one building with different partitions.Description of Company and Purpose of Project The Company is the only operating tannery in Cameroon. It has existed since 1987. Its current operations consist of: (i) exporting about 200,000 raw hides p.a.; and (ii) processing about 1.3 million goat and sheep skins p.a. into wet-blue for export. The project would increase production from 6 to 14 million square feet (sqft) of goat and sheep wet-blue p.a., to be upgraded to crust; it would also increase from 2 million sqft of hides (exported up to now in a raw form) to 3 million sqft (of hides) to be processed into wet-blue for export. PROJECT’S DEVELOPMENTAL EFFECTS The project will help generate 50 new jobs and make good use of an unexploited natural resource. It will also contribute towards diversifying the region’s economy away from the traditional production of the area’s main cash crop, cotton and related activities, mainly cotton oil extraction. The project would also help earn foreign exchange because of its export-oriented activities. IFC’S ROLE IFC is providing much needed term-financing, which local banks are usually ill-equipped to provide. Due to the catalytic effect of IFC’s presence, Societe Commerciale de Banque-Credit Lyonnais Cameroun (SCB-CLC), a local bank, has however, agreed to participate in the financing of NOTACAM’s extension. The IFC Consultant helped improve the design of the new wing to be constructed (in which the crust leather would be produced); he also advised to modify present tanning procedures to allow complete penetration of chrome into wet skins.Environmental Category and Issues This is a category B project. Key environmental issues involve liquid effluent treatment and disposal, chrome recovery, solid waste disposal, water supply, provision of personal protective equipment, fire safety measures, employee training and employee general safety. The sponsor has submitted a plan detailing waste disposal and treatment methods, and general safety issues.The is March 20, 1996 from the Public Information Center.Date SPI sent to PIC March 18, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (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).