Bompreco S.A. Supermercados do Nordeste

completed

Summary Of Project Information (SPI)Project NameBrazil-Bompreco S.A. Supermercados do Nordeste (“BSN”)RegionLatin America and the CaribbeanSectorProject No007683Projected Board DateDecember 30, 1996Company NameBompreco S.A. Supermercados do NordesteTechnical Partner and/or Major Shareholders The Company is currently privately-held by the Paes Mendonça family. The Company has signed a letter of intent with Royal Ahold, a publicly-held Dutch supermarket multinational, to sell 50% of its outstanding shares. Control of the Company will remain with the Paes Mendonça family.Project Cost Including proposed IFC investment US$170 million, including an IFC A loan of US$30 million, inclusive of IFC’s proposed quasi-equity investment of US$5 million.Location of project and Description of site Four stores will be built in urban areas of Pernambuco state, and one in each the states of Rio Grande do Norte, Paraiba, and Ceara. Three stores will be located in shopping centers, while the others will be free-standing. Description of Company and Purpose of Project BSN is the fourth largest supermarket chain in Brazil and the largest in the northeast of the country, where it operates 50 food retail stores and four distribution centers. The project will construct new stores, which is expected to increase annual revenues by over US$300 million and increasing employment by creating 2,670 direct and 7,500 indirect jobs. The project will also modernize existing operations, permitting the Company to provide internationally competitive services to consumers.Environmental Category and Issues This is an environmental review category B project. Environmental and occupational health and safety issues include liquid and solid waste disposal, use of non-ozone depleting refrigerants, fire safety measures, and employee training and general safety. The sponsor has been requested to provide information addressing the issues listed above. The is November 21, 1996 from the Public Information Center.Date SPI sent to PIC      November 20, 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).