SEF Agro Investment Company S.A.

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name : Guinea-Agro Investment Company (AIC)Region : Western AfricaSector : Food and Agribusiness: Melon and Watermelon ProductionProject No : 8345Projected Board Date : July 2, 1997Company Name : AICTechnical Partner/ Major Shareholders : Mr. Pol Vermeiren, who owns 24% of AIC, is the main project sponsor. He has a rich experience in agribusiness and specifically in export and distribution of fresh fruit products to European markets. Project Cost Including Proposed IFC Investment : Total project cost is estimated at US$0.43 million equivalent. IFC has been asked to provide a loan of US$0.2 million equivalent representing 46% of total project cost.Location of Project and Description of Site : The plantation is located at Forecariah, 135 km from Conakry. Total size of the land is roughly 150 hectares. Description of the Company and Purpose of the Project : The project sponsors want to switch irrigation technology to better control the quality of fruits produced as well as increase yield per hectare in order to be more competitive in European markets. Experimentation by the company has shown that drip irrigation yields better quality melons for the varieties produced by the company (Galia, Dalton, Yellow Canaria). The drip irrigation system is being installed by a company which has done similar work in Côte d’Ivoire and which has strong experience in the region. Equipment to be purchased will consist of drip irrigation material and soil analysis instruments. IFC Role : The proposed loan will enable IFC to support a project that contributes to reviving Guinea’s agro-industrial activity which has great potential as the country used to be one of the main exporters of fruit products in the region. IFC’s investment will provide example value as it will be our first SEF project in the country. The Guinean private sector is just now gaining momentum and IFC’s presence will have a catalytic effect by encouraging other companies to follow. The project also helps the local economy as it is one of the largest employers in the Forecariah area. In addition to creating new jobs, the project will make a direct contribution to the Government budget in the form of taxes.Environmental Category and Issues: This is an environmental review category B project; principal issues involve chemical and fertilizer handling and application, integrated pest management, provision of personal protective equipment and employee training, regular medical check-ups for employees handling chemicals, chemical container disposal, source of water and power supply, disposal of solid and liquid wastes, including sewage, impacts on riverine and/or groundwater hydrogeology, impact on river flow and other water uses, increase waterborne diseases, restoration of land disturbed during construction, and general worker safety during construction. The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements: AIC will store its pesticides and chemicals in separate areas locked and guard at all times. An Integrated Pest Management will be implemented and some internationally accepted pesticides will be replaced for milder products. The product containers will be rinsed, crushed and buried in an area designated by local authorities. AIC will train its employees on hazards, precaution, safe storage and handling of potentially harmful materials. The facility will have a first aid clinic. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by AIC and by conducting periodic supervision.The Environmental Review Summary is being sent to the Public Information Center on May 30, 1997.Date SPI sent to PIC : June 2, 1997For additional information contact : Corporate Relations Unit -Telephone : (202) 473-7711Facsimile : (202) 974-4384 L:\CAF\SEF\GUI\AGROSPI.DOCMay 30, 1997 9:09 AMEnvironmental 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).