Agrocapital, S.A.

completed

Summary Of Project Information (SPI)Project NameEcuador-Alborada Rose ProjectRegionLatin American & CaribbeanSectorProject No007687Projected Board DateJuly 12, 1996Company NameFlorAgricola La Alborada Cia. Ltda. (Alborada)Technical Partner and/or Major Shareholders The principal shareholder (52%) is Royal Floral Distributors, Inc. of Miami, Florida, a major rose importer and wholesaler. Royal Floral will handle the distribution of the project’s roses in the U.S.A. and in Asia. The Ecuadoran shareholder (48%)is Mr. Manuel Romoleroux, a lawyer with financial interests in other rose farms.Project Cost Including proposed IFC investment The project cost has been estimated at US$14 million. IFC will provide a seven year loan in the amount of US$3.5 million.Location of project and Description of site The 35.5 ha site is located on former farm land near Cayembe, in the Andean highlands, about 40 km from Quito. The property consists of cleared, gently sloping land surrounded by eucalyptus and poplar wind breaks. Description of Company and Purpose of Project Production of 30 million cut roses for the export market. The roses will be grown under 20 ha of greenhouses. IFC will provide medium-term financing which is practically non-existent in Ecuador. It will also play a catalytic role by mobilizing US$3.5 million in additional loan financing from the Commonwealth Development Corporation. The project is expected to generate US$15 million annually in gross foreign exchange earnings and to create 230 jobs, mainly for women, in a rural area of Ecuador. Environmental Category and Issues This is a Category B project according to IFC’s environmental review procedures. Environmental, health and safety issues associated with this project include liquid effluent control and treatment, solid waste disposal, handling and application of pesticides, and employee exposures to pesticides. The site is located within an existing rose farming area. Liquid effluents will be controlled and treated by septic tank systems, and organic solid waste will be composted and recycled. A pesticide application plan will be developed to minimize the use of pesticides, and biological pest control will be used where possible. The is May 31, 1966 from the Public Information Center. Date SPI sent to PIC May 31, 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).