AEF Societe de Transports et de Commerce Bogoya et Freres (STCBF)

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Burkina Faso - Société de Transports et de Commerce Bogoya et Frères (STCBF)Region Sub Saharan AfricaSector TransportProject No 008764Projected Board Date February 22, 1998Company Name Société de Transports et de Commerce Bogoya et Frères(STCBF) Technical Partner and/or Major Shareholders Mr. Amadé Bogoya Ouédraogo, a Burkinabè National, is the sponsor of the project and the major shareholder with 75% of the shares.Description of Company and Purpose of Project The project is to acquire 15 reconditioned vehicles (2 petroleum tank trucks and 13 trailer trucks), and to build and operate a vehicle maintenance garage in Bobo-Dioulasso and a spare parts warehouse in Ouagadougou. The company’s fleet will consist of 22 trucks in total (including the 7 existing tank trucks) to cover partly the national long haulage and international transportation markets between Burkina Faso and neighboring coastal countries.Location of Project and Description of Site The project statutes are registered at Bobo-Dioulasso where the garage would be constructed. Most project activities are in Ouagadougou, where the warehouse for spares would be constructed. Plots have already been bought for both constructions in areas designated by local authorities for the concerned activities.Project Cost Including Proposed IFC Investment Total project cost is estimated at US$1.1 million equivalent. ECOBANK-Burkina would provide loans of about US$0.6 million of which US$0.4 million would be guaranteed by IFC and US$0.2 million at ECOBANK-Burkina’s own commercial risk.Project’s Development Impact: The project would help a major road transportation company in Burkina to improve and expand its facilities. This would contribute to ameliorating the quality of the road transportation sector which is vital to the local economy, given its landlocked location. The project would also help setting better transportation standards, which would encourage enhanced professionalism in the sector.IFC’s Role The proposed guarantee will help make possible the mobilization of a local bank loan guaranteed by IFC on the basis of competitive market terms. IFC’s presence has helped the revision of the company’s strategic focus which will concentrate only on goods transportation, excluding passenger transportation whose high costs have put a strain on the company’s profitability.Environmental Category and Issues The sponsor is implementing a management plan to prevent spills and thereby ground contamination. All packaging and discarded oil materials will be properly disposed. Domestic liquid effluents will be disposed in septic tanks. Noise levels will be below the World Bank guidelines. The sponsor will have a fire safety program in place. Fire extinguishers will be installed at appropriate places. The employees will be trained on fire safety measures. All employees will have annual medical checkups and will be provided with and required to use the relevant personal protective equipment. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, the proposed project is being designed to meet World bank guidelines.Date SPI sent to PIC January 22, 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) 473-7711- facsimile:(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).