MAGADI SODA COMPANY LTD.

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name KENYA-Magadi Soda Company LimitedRegion Sub-Saharan AfricaSector IndustryProject No. 004853Projected Board Date June 15, 1995Company Name The Magadi Soda Company Limited (Magadi)Location of project and Description of site Lake Magadi, Kenya, southwest of Nairobi near Tanzanian border.Description of Company and Purpose of Project Magadi has been producing soda ash from the alkaline deposits of Lake Magadi since the early part of this century. It is an important, well established exporter of natural soda. Magadi also provides and supports essential infrastructure and social services, such as education and health facilities, to its local community. The project will debottleneck and refurbish Magadi''s operations to increase production capacity by some 50,000 mtpy of soda ash. In addition to investing in key plant and equipment, the project will support Magadi in taking over responsibility for upgrading, maintaining and running its key railway link to the coast, which in the past has been a key constraint on its operations, as well as providing funding for investment in environmental management.Shareholders Magadi''s shareholder is Brunner Mond Holdings Limited, which took over ICI''s (Magadi''s previous owner) UK and Kenyan interests in the soda ash industry, through a buy-out in 1991.Project Cost including proposed IFC investment The project is due to be completed in 1996 at a cost currently estimated at US$23 million.Environmental Categories and Issues This is a category B project according to IFC''s environmental review procedure. Environmental issues involve air emissions, liquid effluent, solid waste disposal, general housekeeping, rail operation and safety, and general health and safety. An independent consultant has, on behalf of Magadi''s new owners, prepared an environmental audit of Magadi''s facilities, and recommends actions on technical and housekeeping issues to be taken for bringing the operations into compliance with local regulations and World bank environmental policies and guidelines. A corrective action plan covering these recommendations will be implemented as part of the project.Date SPI sent to PIC May 15, 1995For additional information contact: Corporate Relations Unittel: (202) 473-7711fax: (202) 676-0365 Environmental 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).