SEF Bosnalijek

completed

Summary Of Project Information (SPI)Project NameBosnia and Herzegovina: Bosnalijek - Solid Oral Drugs     RegionEuropeSectorProject No008420Projected Board DateMay 1, 1998Company NameBosnalijekTechnical Partner and/or Major Shareholders Bosnalijek is a state-owned enterprise that will participate in the forthcoming national privatization program.Project Cost Including Proposed IFC Investment The total project cost is approximately DM10 million, which will be partially financed with an IFC loan of approximately DM4.5 million. The project was identified and is being processed under IFC’s Extended Reach Program.Location of Project and Description of Site The project will be housed in an existing building that is located on a 82,000m2 industrial site near Sarajevo.Description of Company and Purpose of Project Bosnalijek is the only pharmaceutical company in Bosnia and Herzegovina. Although operating at margional levels during the war, the Company has been and continues to work with the international donor community and private sector multinationals to ensure that all regions of the Federation Entity of Bosnia and Herzegovina are supplied with the necessary pharmaceutical products. The project includes reconstruction of a plant destroyed druing the war and modernization of facilities and equipment to re-start manufacturing of solid oral drugs. Domestic manufacturing of solid oral drugs will not only provide the country with a capability that existed before the war, but it will also save much-needed hard currency reserves through import substitution. In addition, the project will enable redeployment of a part of Bosnalijek’s work force that is currently unemployed.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure, because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Environmental, occupational health and safety issues associated with this project include potential soil, ground water, and building contamination, liquid effluents and worker safety. The project will be implemented at existing facilities, where there are no rivers or streams in the immediate vicinity, and implementation will not result in resettlement or alteration of natural or cultural resources. Air emissoins will be controlled through installation of filters, while industrial solid wastes will be stored in containers that are properly disposed on an annual basis; and liquid wastes after treatment will be discharged into the municipal collection system. Bosnalijek has formed an Environmental Department that will be responsible for fire prevention system and emergency response program, and worker health and safety programs. IFC will monitor Bosnalijek’s ongoing compliance with World Bank policies and guidelines during the life of the project.The is from the Public Information Center.Date SPI sent to InfoShop      April 1, 1998“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).