Guipeba-Ceval S.A.

completed

Summary Of Project Information (SPI)Project NameArgentina - GuipebaRegionLatin America and CaribbeanSectorProject No007731Projected Board DateDecember 7, 1996Company NameGuipeba - Ceval S.A.Technical Partner and/or Major Shareholders Guipeba is a wholly-owned subsidiary of Ceval Alimentos S.A., a Brazilian food and agribusiness company with operations in the soybean crushing, oil refining and meat processing sectors. Project Cost Including proposed IFC investment Project Cost: US$47.5 million, including interest expenses during construction. Proposed IFC investment: US$20 million, including a US$5 million income participating loan. Proposed syndication: US$20 million for the account of participating banks.Location of project and Description of site Production facilities to be modernized, expanded or built are located in the provinces of Córdoba, Santa Fé and Salta.Description of Company and Purpose of Project Guipeba is a medium-sized Argentine oilseed crushing company. Its facilities include two crushing plants, a refinery, and several storage units in the provinces of Córdoba, Santa Fé, Salta and Tucumán. In addtition, Guipeba has equity stakes in Terminal 6, a grain and oilseed meal port on the Paraná river near Rosario, and Guide, an oil shipping river port. The 1996-98 Project includes: (i) construction of a 2,000 tpd soybean crushing plant; (ii) expansion of the Company’s oilseed storage capacity by approximately 400,000 tons; (iii) modernization of existing oilseed crushing facilities; (iv) construction of a 12,000 units per hour bottling facility. The Project will improve Guipeba’s production efficiencies, improve its international competitiveness, expand its capacity to produce value-added goods and allow the Company to capitalize on Argentina’s efficiency as a producer of oilseed by-products in view of expanding worldwide demand for these commodities. The project has a significant developmental impact in rural areas of the provinces of Córdoba, Santa Fé, Tucumán and Salta. It will provide direct benefits to farmers in the form of further efficiencies in logistics and storage infrastructure that will translate into lower costs for the farmers. The project will also represent a significant increase in export receipts contributing to the country’s balance of payments.Environmental Category and Issues This is an environmental review category B project. Environmental, health and safety issues include land use, air emissions, liquid effluent treatment and discharge, solid waste disposal, fire and dust explosion prevention, employee exposure to noise and dust, and general employee health and safety. Environmental reports submitted by Guipeba indicate that the project will comply with World Bank guidelines.The is from the Public Information Center.Date SPI sent to PIC November 7, 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).