SEF Endeavor Embroidery (Pvt) Ltd.

completed

Summary Of Project Information (SPI)Project NameLAO PDR - SEF ENDEAVOUR EMBROIDERY CO. LTD. (ENDEAVOUR)     RegionAsiaSectorProject No008967Projected Board DateMay 16, 1998Company NameEndeavour Embroidery Co. Ltd.Technical Partner and/or Major Shareholders Endeavour Embroidery Co. Ltd. (the "Company") will be owned by Mr. John Predl (51%) and by his wife, Mrs. Minichanh Boulyaphol (49%). Mr. Predl has about eight years of experience running an embroidery business in Australia. Ms. Boulyaphol is a skilled embroidery machine operator and supervisor who is familiar with Barudan''s machines. Barudan Asia Pvt. Ltd. will take preferred shares in the Company worth approximately US$ 104,000. Barudan Asia Pvt. Ltd. is a fully owned subsidiary of Barudan Japan which is the embroidery machine supplier to the Project.Project Cost Including Proposed IFC Investment US$471,000 including an IFC Loan of up to US$235,000Location of Project and Description of Site The Project will be located in Vientiane, about 10 kilometers from the city center. A new factory building 16 meters by 17 meters would be built on the ground of Atlanta Enterprises, a large manufacturer of garments. The site is flat and there is sufficient space for expansion.Description of Company and Purpose of Project The Company will build a modern semi-automated embroidery unit in Vientiane and service the Lao garment export sector with higher quality and more reliable embroidery services. The export garment sector in Lao PDR is comprised of about 46 producers exporting products. However, currently, many Lao garment manufacturers are either forced to turn down export orders or send garments out to Vietnam or Cambodia for embroidering due to the lack of modern embroidery capacities in Lao PDR. By investing in proven technology, the Company can enable local garment makers to attract orders at a higher price level from quality international brands in the sportswear and leisurewear markets. These products will mainly be for European buyers whose markets demand a high level of finished quality at economic costs. IFC and the IFC- managed Mekong Project Development Facility have played an important role in the Project by reviewing the technical, strategic, financial, environmental, and legal arrangements. Under the Extending IFC’s Reach Initiative, IFC is one of the few sources of long-term capital for Lao projects. The Project supports the Lao Government’s policy to promote private sector projects and encourage development of the garment industry. Moreover, by providing embroidery to ISO9001 standards, the Project would provide a demonstaration effect to others in this sector. The Project will also contribute to generating foreign exchange earnings and increased tax revenues. Environmental Category and Issues This 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. IFC’s Technical and Environmental Department staff’s review of this project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, safety and health impacts of the project were analyzed: solid waste management; fire prevention and emergency response; and employee health and safety, including training.Solid wastes generated are limited to paper packaging materials, which will be collected and disposed by a licensed disposal contractor in accordance with Lao PDR requirements. Adequate fire prevention systems have been incorporated into building design and operation. Fire drills and other training programs will be held periodically. The Company will adress all aspects of employee health and safety including workplace noise, and general health and safety and training. The project will meet the relevant World Bank Group policies and guidelines and Lao PDR requirements. IFC will monitor ongoing compliance during the lifetime of the Project by evaluating reports submitted annually to IFC by the Company and by conducting periodic supervision.The is from the Public Information Center.Date SPI sent to InfoShop      April 16, 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).