Baku Coca Cola

completed

Summary Of Project Information (SPI)Project NameAzerbaijan-Baku Coca-Cola Bottling     RegionEuropeSectorProject No007701Projected Board DateSeptember 24, 1996Company NameBaku Coca-Cola Bottlers Ltd. Technical Partner and/or Major Shareholders Efes Investments, part of Anadolu Group of TurkeyProject Cost Including proposed IFC investment US$26.5 million including an IFC “A” Loan of up to US$3.5 million and Equity investment of up to US$2.3 million. Location of project and Description of site The Project is located in an industrial zone located near Baku. The site is a land area of 4.2 hectares located near a good and plentiful water supply and a reliable power source, with easy access to Baku market. The available space provides adequate space for production and warehouse facilities (8,200 m2), administrative offices(1,500 m2), water storage and parking, plus room for future growth for the addition of a second line. Description of Company and Purpose of Project Baku Coca-Cola Bottlers Ltd. was established in Azerbaijan in July 1994 and has been importing and distributing Coca-Cola products (Coke, Fanta, Sprite and Cappy) in the Baku Region. In September 1995, the Company concluded a lease agreement for a site for a bottling facility near the City of Baku. A tender for the construction of a bottling facility with an annual capacity of 60 million liters, based on 3 shifts, was finalized in February 1996. The new bottling plant will be an state-of-the art facility located five miles outside of Baku and within a few miles of a high quality municipal water source. The plant which is nearly 70% completed, is expected to commence commercial production in September 1996. Azerbaijan’s local production of non-alcoholic beverages currently accounts for less than 5% of the market. Imports from Turkey, Russia, Iran and Dubai make up the majority of beverage products sold on the local market. The project will enable the Company to produce Coca-Cola products locally, and at a cost of 50% of its current imported cost. Much of the cost savings will be will be passed on to consumers through lower prices. The project will also enable the Company to increase its market share from 20% to 50% of the soft drink market by capturing Coca-Cola’s entire market share in Azerbaijan.Environmental Category and Issues This is an environmental review category B project. Environmental, occupational health and safety issues associated with this project include: water supply, liquid effluent treatment, air emissions from steam boilers, solid waste disposal, potential contamination of the site from present or past uses, use of CFCs in refrigeration systems and workplace noise and safety. The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements. To address the historic use of the site for oil exploration and production, the company has conducted a Phase I Environmental Site Assessment of the property and has obtained indemnification for past site contamination from the City Government of Baku.     The is from the Public Information Center.Date SPI sent to PIC August 16, 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).