Liberian Agricultural Company

completed

Summary Of Project Information (SPI)Project Name:Liberia: LACRegion:Sub-Saharan AfricaSector:Project No:009447Projected Board Date:May 13, 1999Company Name:Liberian Agricultural CompanyTechnical Partner and/or Major Shareholders LAC’s main shareholder is Compagnie Internationale de Cultures (Intercultures) a Luxembourg-registered affiliate of Société Financière des Caoutchoucs Luxembourg “SOCFINAL” S.A. (SOCFINAL), a Luxembourg holding company with agricultural, real estate, banking and financial interests. Among SOCFINAL’s shareholders is the Bolloré group which has large investments in Africa. Agricultural activities include direct holdings in oil palm and rubber in Indonesia, Cameroon, Nigeria, Ivory Coast, Liberia, coffee and roses in Kenya and forestry in Cameroon. SOCFINAL also has large portfolio holdings in firms involved in rubber and oil palm in Malaysia and Cameroon.Project Cost Including proposed IFC investment The project will consist of a US$7.0 million rehabilitation program to restart the Company’s operations. IFC has been requested to provide a US$3.5 million loan to LAC.Location of project and Description of site LAC is located about 190 km east of Monrovia. The LAC’s estate covers an area of 120,000 ha, out of which 10,500 has been developed as a rubber plantation The rest of the concession is comprised of 27,600 ha of secondary high forest, 58,200 of broken forest, 10,000 ha of pastures and fallow and about 13,700 ha of wet zones and rice fields.Description of Company and Purpose of Project The project involves the rehabilitation of a rubber operation of the Liberian Agricultural Company (LAC), which ceased operations following the eruption of civil war in Liberia. The Sponsor just acquired 75% of the shares of the Company. The Sponsor will restart the operations and rehabilitate the Company with an immediate US$7.0 million rehabilitation program involving the reconstruction of buildings, workers’ camps, reconstruction of the factory, and rehabilitation and rebuilding of bridges and roads. In addition the Company will expand the plantation areas by 2,500 ha of rubber. Environmental Category and Issues This is a category B project according to IFC''s environmental and social review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environmental, occupational health and safety issues were analyzed: site acquisition, land tenure, existing land uses, confirmation that operations will not affect significant areas of natural habitat, plantation management and integrated pest management systems, compliance with relevant national and World Bank Group environmental and social requirements, management of any hazardous materials, and occupational health and safety issues.The LAC estate is a long established estate (1961). No new land acquisition will take place, there has been no settlement of the existing LAC plantation areas and there will be no physical resettlement or economic displacement. The project will rehabilitate 10,500 ha of existing rubber plantation and establish an additional 2,500 ha of rubber on land that has been previously cleared of forest by others and which now supports tertiary scrub re-growth. The project will not result in loss of tropical moist forest and the Sponsor is looking at ways in which he can protect remaining forest assets within the estate from illegal damage by third parties. Only very limited use of agrochemicals is envisaged and use will conform to World Bank Group (WBG) requirements in terms of storage, use and disposal practices. The Sponsor will comply with WBG requirements in relation to air emissions, wastewater effluents and solid waste handling and disposal. There is currently no relevant environmental or health and legislation in Liberia. The company will develop and implement a formal occupational health and safety plan which complies with WBG requirements and will provide or organize appropriate training for staff.The is April 7, 1999 from the InfoShop.Host country location of environmental documentsLiberiaDate SPI sent to InfoShop:April 6,1999“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).