AEF Plantation Resources Limited

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Ghana-Plantation Resources Limited Region Sub-Saharan AfricaSector AgribusinessProject No 008346Projected Board Date November 10, 1997Company Name Plantation Resources Limited (PRL)Major Shareholders. The company is equally owned by Dr. Owusu Akoto and his brother Alex Akoto. Dr. Akoto is the principal sponsor and executive chairman of PRL. He worked at the International Coffee Organisation (UK) for 17 years and was the chief economist for the five years to 1992. Dr. Akoto holds a doctorate degree in agricultural economics (University of Cambridge, UK).Project Cost including Proposed IFC Investment. Total project cost is estimated at US$1.1 million. IFC has been requested to provide an A loan of US$495,000.Location of project. The project is located in the Ashanti region of Ghana.Description of Company and Purpose of Project. PRL was set up in 1988 to develop coffee and cocoa plantations. The project is to rehabilitate includes (i) replanting the coffee trees on the estates with high cloning material from the Cocoa Research Institute of Ghana (CRIG) which PRL has been nurturing in its nurseries and planting at the density recommended by CRIG and IFCs’ consultants, and (ii) coppicing the coffee trees. and modernise three out of five coffee plantations (485 ha) acquired from the government’s privatisation programme in 1993 including the installation of a drip feed irrigation system, construction of three farm houses and warehouses, the acquisition of two tractors, a couple of pickups, and to raise working capital.IFC participation will provide term finance in a country where such funding is limited. This project will also transfer technology know-how in coffee management, generate foreign exchange and contribute to the welfare of the local community. The success of PRL will have a demonstration effect on the coffee industry in the country.Environmental Category and Issues. This is a category B project according to IFC’s environmental review procedure because specific impacts may result, which can be avoided or mitigated by adhering to generally recognised performance standards, guidelines or design criteria.Environmental issues associated with this project include chemical and fertilizer use and handling; liquid and solid waste disposal; chemical container disposal; source of water supply; integrated pest management; loss of grazing land and wildlife habitat; and power supply and boiler emissions. Occupational health and safety issues include employee safety and training; and fire prevention and emergency response; provision of personal protective equipment; and regular medical checkups for employees handling chemicals. The sponsor presented a plan to address the environmental concerns which have been reviewed by IFC’s Environment Department and concluded that the proposed project is being designed to meet local environmental regulations and World Bank policies and environmental, health and safety guidelines.The Environmental Review Summary was sent to the Public Information Centre October 1, 1997.Date SPI sent to PIC: October 2, 1997“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) 974-4384Environmental 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).