INCON

completed

Summary Of Project Information (SPI)Project NameMoldova - INCON Fruit and Vegetable Processing Project      RegionEuropeSectorProject No007574Projected Board DateDecember 3, 1996Company NameINCON Joint Stock CompanyTechnical Partner and/or Major Shareholders Major shareholders are the three processing plants Kupchin JSC, Ungheni JSC, and Floresti JSC. These plants in turn are owned by farms/suppliers, employees and holders of privatization vouchers.Project Cost Including proposed IFC investment US$22.6 million, with an IFC loan of US$8.0 million and an IFC equity participation of US$2.0 million.Location of project and Description of site The three plants are located in different rural townships in north-west Moldova at distances of between 80 and 200 km from the capital Chisinau.Description of Company and Purpose of Project INCON is a successful export marketing and service company created in 1992 by a group of Moldovan fruit and vegetable processing plants following the collapse of the former Soviet Union and the disintegration of economic links. The project is a major stage in the consolidation of the sector by assisting INCON to transform into a partial holding company and bringing the facilities of three processing plants, ranking among the more successful agribusiness enterprises in Moldova, in line with western standards. Excellent “Black soils” and a moderate climate give Moldova a major comparative advantage in growing fruit and vegetables. A sustainable and competitive processing industry is thus of national importance. The project will be IFC’s first investment in Moldova. IFC’s main role is to give strong support to the post-privatization process. IFC has advised on an adequate financial structure and a corporate restructuring to develop a sustainable and competitive group of companies. Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental, occupational health and safety issues include air emissions, liquid effluents, solid waste recycling and disposal, general health and safety, and safe use of pesticides and preservatives. The sponsor is upgrading the plant to comply with the relevant World Bank policies and guidelines. Air emissions will be met by using appropriate control devices, while the liquid effluents will be treated by the use of solid removal filters. Solid waste will be sold to local farmers for use as animal feedstock and glass will be recycled. Employees will be provided with personal protective equipment and will have medical services available. The is from the Public Information Center.Date SPI sent to PIC November 1, 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).