Campina 000

completed

Summary Of Project Information (SPI)Project Name:Russian Federation - Campina YogurtRegion:Europe IISector:Project No:008977Projected Board Date:May 28, 1999Company Name:Campina OOOTechnical Partner and/or Major Shareholders The Sponsor, Campina Melkunie, is an international co-operative which specializes in development, production, sale and distribution of dairy products for the consumer market and high-grade ingredients for the food and pharmaceutical industries. Campina is one of the largest dairy cooperatives in Europe, with sales of US$ 4.5 billion in 1997, and has a strong market share in The Netherlands, Germany and Belgium.Project Cost Including proposed IFC investment The Project Cost is estimated at US$ 30.5 million of which IFC will provide a US$ 10 million loan.Location of project and Description of site The project is located on a 15-hectare site in Stupino raion, about 150 kilometres south of Moscow. Stupino is the largest agricultural district in the Moscow region.Description of Company and Purpose of Project Campina OOO is a 100 per cent owned subsidiary of Campina Melkunie. Campina OOO will produce and market yogurt in the Russian Federation and expects to capitalize on the considerable growth potential for dairy products in Russia. The project will help rejuvenate the Russian dairy industry by improving animal husbandry, employing the latest technology and raising quality to international standards. The Company will obtain its fresh milk supply from local farmers; hence the country''s agricultural sector will benefit from the development of the dairy farming industry. To ensure adequate supply of high quality fresh milk the Company will provide technical support to farms and improve milk collection. The project will leverage on IFC’s experience in land privatization and farm re-organization to secure long-term supply arrangements with local dairy farms. IFC''s participation provides comfort to Campina in its first investment in Russia.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Key issues, which were examined during review of this project, included air and water emissions, solid waste disposal, hazardous materials handling, use of CFCs, plant hygiene, fire protection and worker health and safety. Air emissions arise from boilers as well as dust odor from processing activities will be monitored regularly by the Company to ensure compliance with World Bank guidelines for emissions. Dust levels will be controlled by ventilation and fabric filters. Solid waste will include polystyrene, card and paper and will either be re-used or disposed of in licensed landfills. All chemicals will be securely stored and access will be restricted to staff with requisite training. A fire control system will be installed. Standard protection measures and personal protection equipment will be employed to ensure worker health and safety. The proposed project will meet World Bank group environmental and health and safety policies and guidelines and host country requirementsThe is from the InfoShop.Host country location of environmental documentsStupino, RussiaDate SPI sent to InfoShop: April 28,1999“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).