SEF IMACASA II

completed

Summary Of Project Information (SPI)Project NameEl Salvador. SEF-Imacasa IIRegionLatin America and CaribbeanSectorProject No009038Projected Board DateSeptember 14, 1998Company NameImplementos Agricolas Centroamericanos, S.A. de C.V.Technical Partner and/or Major Shareholders The company is owned by over 20 shareholders, mostly Salvadorans.Project Cost Including proposed IFC investment US$1.5 million. Of this amount, IFC is financing US$450,000, consisting of US$250,000 in an A-Loan and US$200,000 in equity.Location of project and Description of site The project is located in the Santa Lucia industrial park, on the outskirts of the city of Santa Ana. The site consists of 10,000 square meters of covered industrial area.Description of Company and Purpose of Project Imacasa is among the largest manufacturers of agricultural hand tools in Central America, with leading market shares for products such as machetes, axes, picks and shovels. The project is designed to increase production capacity and to expand the Company''s product lines to consolidate its sales in new markets. The project also includes the sale of Imacasa shares, including a portion to be sold to Imacasa employees and a portion to be sold in the Salvadoran stock market.Environmental Category and Issues This is a category B project according to IFC''s environmental review procedure: Environmental, social, occupational health and safety issues associated with this project include: liquid effluent treatment, solid waste handling and disposal, air emissions, fire prevention and emergency response, and employee protection from heat, noise, dust and hazardous chemicals. Process water is recycled. Domestic sewage from the workforce goes into the city sewage collection system. The company has implemented a wet sand paper process for the sharpening of tools, which has eliminated the production of metal particles. Domestic solid waste is collected and disposed of according to local regulations. Electrical power is supplied by the national grid. Imacasa uses two stand-by generators used in emergencies. Currently, one of the generators is used approximately 5 hours per day. The diesel fuel is stored on site in two tanks one of 9,000 and 5,000 gallons. The tanks have adequate secondary containment in the event of spills. Employees are required to wear hearing protection devices in areas of high noise level. Emergency response equipment, including fire extinguishers, are located in strategic areas. The company has a task force assigned to provide safety training and emergency response capacity.The is from the InfoShop.Date SPI sent to InfoShop August 6, 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).