Nghe An Tate & Lyle Ltd.

completed

Summary Of Project Information (SPI)Project NameVietnam-Nghe An Tate & LyleRegionAsiaSectorProject No007852Projected Board DateJuly 1, 1997Company NameNghe An Tate & Lyle Sugar Company Ltd.Technical Partner and/or Major Shareholders Tate & Lyle PLC, the world’s largest sweetener manufacturer; (42%) Mitr Phol, one of Thailand’s largest sugar producers; (17.5%) The Vietnam Fund Ltd. (10.5%); Nghe An Sugar Co. (30%) Project Cost Including proposed IFC investment US$85 million of which IFC would provide up to US$20 million in the form of an A Loan and up to US$28 million as a B Loan.Location of project and Description of site Phu Quy District, Nghe An Province Construction and operation of greenfield sugar mill in northern Vietnam for the production of high quality mill white and refined sugars. The mill will be constructed on a 60 ha site in a predominantly agricultural region of the country. Part of the site was formerly occupied by a small tea plantation.Description of Company and Purpose of Project The Company has been established as a foreign joint venture under Vietnam’s foreign investment law. The Sponsors intend to capitalize on the rapid growth in domestic demand for sugar forecast for the country. Developmental benefits include direct employment of an estimated 700 mill workers; improvements in the domestic sugar industry such as greater processing efficiency (higher sucrose recovery) and improved quality; increased incomes for an estimated 22,000 smallholder farmers and their families who will supply the mill’s raw material under long-term cane supply contracts; and greater agricultural efficiency through the Sponsors’ planned introduction of higher yielding cane varieties, modern planting techniques and improved harvesting methods. Indirect benefits resulting from demand by the Company will include the development of a cane hauling industry and strengthening of rural credit facilities.Environmental Category and Issues The project has been rated environmental category B under IFC''s environmental review procedure. Environmental and occupational health and safety issues associated with this project include site location, emissions, liquid effluent treatment, solid waste management and recycling and employee training, health and safety. The project is being developed in an agricultural area with a small village nearby. Air emissions from the mill will consist of flue gases from the steam boilers and will be kept within local requirements and World Bank guidelines through treatment with a wet scrubber. Wastewater from the mill will be collected and treated in a full scale biological wastewater treatment plant established on-site and will comply with local requirements and World Bank effluent guidelines. Solid wastes generated by the plant will include bagasse, cane filter mud, boiler ash and scrubber sludge. Bagasse will be recycled as fuel for the mill''s boilers. The other solid wastes will be returned to the farmers to spread on their sugarcane fields as a fertilizer supplement. NATL will implement a workplace health and safety policy commensurate with Tate Lyle policies worldwide. IFC will ensure ongoing compliance with World Bank guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by NATL and by conducting periodic site visits.The is from the Public Information Center.Date SPI sent to PIC      April 4, 1997For 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).