Plzensky Prazdroj, A.S.

completed

SUMMARY OF PROJECT INFORMATIONProject Name    Czech Republic - Plzensky Prazdroj, a.s. (PP)                        Modernization and expansion of PP''s two breweries                             located in Plzen, and financial restructuring. Region Central EuropeSector IndustryProject No. 004352Company Name Plzensky Prazdroj, a.s.Description of Location The Company comprises five breweries: two located in the City of Plzen, and one in each of the following Northwestern Bohemian cities: Karlovy Vary, Cheb, and Domazlice.  The Company also has a bottling plant at Beroun, in West Bohemia. The project involves the two breweries in Plzen called Prazdroj and Gambrinus, which are located on an adjacent site to each other, in a total area of about 70 hectares.Date SPI sent to PIC  April 11, 1995Projected Board Date May 15, 1995Description of Company and Purpose of Project The Company is a limited liability company, privatized on April 30, 1992, in the Government''s first wave of coupon privatization.  It''s main activity is the production and sale of beer in the domestic and export markets.  It also distributes Vodka produced by third parties and sells small amounts of malt in the export market.  The project consists of the completion of the general modernization program and rationalization and upgrading of the Prazdroj and Gambrinus breweries; the completion of four distribution centers in the Czech Republic, and the refinancing of short term debt with long term loans.Technical Partner and/or Major Shareholders The Company is 100% Czech owned and is controlled by four coupon privatization investment funds.Project Cost The total estimated project cost is US$170.5 million equivalent.  IFC has been asked to assist in the financing of this project by providing loans for a total of DM90 million (US$75 million equivalent).Environmental Category and Issues This is an environmental review category B project; principal issues are: air emissions, recycling and solid waste management, effluent treatment, ambient noise, fire prevention, PCB and CFC free equipment, and general employee health and safety.  IFC''s Technical and Environment Department staff have reviewed these issues.  The majority of the Company''s boilers are gas fueled and are having air emissions well within local requirements and World Bank Guidelines.  Those operated on oil will be converted to gas as part of the project.  Glass, paper and polyethylene waste from the Company are recycled. Waste oil is collected by a specialized company and domestic solid waste is land filled according to local regulations.  The Company will ensure that waste water that is not supplied to municipal sewage treatment systems operating in compliance with World Bank Guidelines, will be in compliance with Czech national standards revised towards European Union Standards or World Bank  guidelines by the end of 1998, either by upgrading the waste water treatment facility or by connection to an upgraded municipal system.  The Company has proven that the other environmental issues mentioned above are being addressed within World Bank guidelines.  The Environmental Review Summary will be available from the Public Information Center on the same date as this Summary of Project Information.For additional information contact: Corporate Relations Unittelephone: (202) 473-7711facsimile: (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).