Agroguayabito S.A.

completed

Summary Of Project Information (SPI)Project NamePeru-AgroGuayabito, S.A.     RegionLatin America and CaribbeanSectorProject No008929Projected Board DateJune 25, 1998Company NameAgroGuayabito, S.A.Technical Partner and/or Major Shareholders Labarthe Brothers; Lima, PeruProject Cost Including Proposed IFC Investment Project Cost: US$30 million IFC Loan: US$7 million IFC Equity: US$1 millionLocation of Project and Description of Site The project site is located approximately 200km north of Lima, east of the Pativilca River. The site is on never cultivated desert lands contiguous to established coastal river valleys.Description of Company and Purpose of Project(include IFC’s Role and Development Impact) AgroGuayabito was established in 1993 for developing integrated agribuisness operations in poultry, asparagus and tomato production and processing. The project will: expand the Company''s asparagus and industrial-use tomato production; develop sugar cane production; develop infrastructure and irrigation canals; and improve social conditions. IFC''s role in this project will support a key Peruvian Government program to reform the agricultural sector as well as sending a positive signal to the investment community regarding Peru''s status as a secure country for agricultural investments. The project''s main development impacts are: significant (over 1,000) rural employment, entreprenueurial development, agribusiness development, and environmental safeguards.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 recognized performance standards, guidelines or design criteria. The following potential environmental, health and safety impacts of the project were analyzed: land use in agriculture expansion areas and presence of environmentally-sensitive areas and critical natural habitat; agricultural practices and pesticide use, including impacts on soil, water air and human health; air emissions, wastewater effluents and solid wastes from asparagus and tomato processing facilities; irrigation water source and impacts on groundwater levels; storage and handling of agricultural chemicals; and general worker health and safety. Agricultural expansion is occurring on previously unused desert land, and no environmentally-sensitive or protected areas will be affected. The company has implemented a comprehensive integrated pest management plan and has its own entomological laboratory which is involved in identifying and using natural insect predators to control pests in its crops. The company is also pioneering the use of drip and microspray irrigation to conserve water supplies. The company’s processing operations will be operated to minimize effluents and ensure that they meet the applicable World Bank Group guidelines.     The is from the InfoshopDate SPI sent to InfoShop May 15, 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) 473-7711facsimile: (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).