SEF Baterias de El Salvador S.A.

completed

Summary Of Project Information (SPI)Project NameEl Salvador-Baterias de El Salvador, S.A.     RegionLatin America and CaribbeanSectorProject No008644Projected Board DateDecember 26, 1997Company NameBaterias de El Salvador, S.A.Technical Partner and/or Major Shareholders The Company is owned by the Lacayo family, a well established family in El Salvador.Project Cost Including proposed IFC investment US$4.1 million, including an IFC A-loan of US$2 millionLocation of project and Description of site The site, in which the Company has been located for the past year and a half, consists of 211,000 square feet of total area with 70,000 square feet of building space. This industrial site is located 33 kms west of the city of San Salvador.      Description of Company and Purpose of Project(include IFC’s Role and Development Impact) Baterias is the largest and among the most modern car battery manufacturers in Central America, and has the only modern car battery recycling facility in the region. The Project will expand and modernize the Company’s new facilities to increase car battery production and recycling capacity. The Project will also provide working capital to finance its increased sales and will restructure part of its short-term debt. By supporting the Project, IFC will provide necessary long-term funds and will provide assurance to other investors about opportunities in the country. IFC’s support to Baterias’ modernization efforts would also give a strong signal to other local companies that are considering to modernize in order to remain competitive. The Project is also consistent with IFC’s strategy to support projects that have positive environmental impacts. The Project has environmental benefits since it decreases contamination by recycling a large portion of disposed car batteries in the area. In addition, there will be a strong demonstrative effect which can stimulate higher environmental standards for other companies in the region, as a main player in the market raises its level of modernization and operates its business with high environmental standards. The Project supports direct employment at the Company, and supports indirect employment of people in distribution, retail, and collection and sales of disposed car batteries.      Environmental Category and Issues This is an environmental review category B project. The Company recycles all battery components, including lead, acid and plastics, and has a positive environmental impact since it reduces contamination of disposed car batteries. It has invested significantly in effluent recycling and air emission control equipment. Effluents are neutralized and recycled. Environmental and occupational health and safety potential impacts of the Project that were analyzed include: liquid effluents and spill containment; air emissions; worker exposure to lead and acids; and closure and cleanup of the old plant.The is from the Public Information Center.Date SPI sent to PIC      November 26, 1997“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).