AEF Société Agro-Industrielle et Commerciale du Cameroun

completed

Summary Of Project Information (SPI)Project Name:CAMEROON – SAICAM SarlRegion:Sub-Saharan AfricaSector:AgribusinessProject No:009388Projected Board Date:June 30, 1999Company Name:SAICAMMajor Shareholders The main shareholder is Mr. Louis Dongmo (42), a graduate electromechanical engineer from the Yaounde Polytechnic University. He worked for over 13 years in UCCAO, the then-leading Cameroonian firm in the processing and marketing of green coffee. Mr. Dongmo left UCCAO in 1994 as an experienced Production Manager to create SAICAM. He is assisted in his business activities by his wife Mrs. Dongmo Nguedia Jacqueline, holder of a law degree from the University of Dschang.Project Cost Including proposed IFC investment The overall project cost is estimated at US$ 1,179,334 US$ 1 = CFA 600. IFC has been requested to provide a loan of US$ 291,667, and a venture loan of US$ 166,667.Location of project and Description of site The existing SAICAM site (1660m2) is located in an industrial development zone on the outskirts of Bafoussam. Expansion of processing facilities will require an additional 1500m2 of land adjacent to the existing site and which has already been acquired from private owners. The site alongside the Douala - Bamenda highway, provides immediate access to major road connections of the country, and to power and telecommunications networks. Description of Company and Purpose of Project(include IFC’s Role and Development Impact) The project involves the expansion of a coffee-processing unit with the aim of increasing the production of roast and ground coffee from around 120 tpa to 600 tpa within five years. SAICAM is located in the Western and coffee producing region of Cameroon, with a total annual production of over 20,000 tons of arabica and robusta coffee. IFC’s role is the provision of term financing, which will comfort the participation of a local financing partner, thereby meeting one of IFC’s objectives in local resource mobilization channeled to investment. The developmental impact resulting from the project include: (a) increased added value and quality to locally grown coffee; (b) creation of 30 additional permanent jobs; (c) generation of foreign currency earnings for the country; and (d) increasing competition in the local coffee processing industry.Environmental Category and Issues This is a category B project. Key environmental issues include: site selection and conditions, pesticides handling and application, effluent treatment and disposal, solid waste management, water and power supply, and CFCs. Health and safety issues include fire safety and emergency response, workplace safety and training, and employees exposure to noise, heat and dust. The sponsors have presented information to address these issues and demonstrated that the proposed project will comply with applicable government and World Bank Group environmental protection requirements. The is from the Public Information Center.Date SPI sent to PIC: March 31, 1999“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).