SEF Lignosper

completed

Summary Of Project Information (SPI)Project NameBosnia-Herzegovina - Lignosper     RegionEuropeSectorProject No008459Projected Board DateDecember 15, 1997Company NameLignosper (the “Company”)Technical Partner and/or Major Shareholders The sponsor of the project is the currently state-owned company Lignosper, which is scheduled to be privatized shortly. The current management, including General Manager Mr. Nedeljko Suzic, and employees of the Company plan to become shareholders when Lignosper is privatized. Project Cost Including proposed IFC investment The total project cost is DM 7.2 million, including an IFC loan of DM 3.6 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 located at the Company’s current production site 3 kilometers west of the town of Novi Grad in Republika Srpska, the Bosnian Serb Entity of BiH. Novi Grad is situated on the western border with Croatia. The plant was established in 1960.Description of Company and Purpose of Project The project is to refurbish and upgrade this existing wood processing and furniture manufacturing facility. Project implementation will enable the Company to lower production costs, procure essential new plant and equipment to re-establish several of its production lines destroyed in the war, and provide working capital necessary to restore its contractual relations with western furniture distributors. IFC’s loan would provide the Company with needed long-term financing, which is not otherwise available. With project implementation, Lignosper will re-employ some of the skilled labor which was laid off during the war, increasing the staff from the current level of 583 to a total of 730. Management and staff training provided as part of the project will increase the skills level of the work force.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental, social, and occupational health and safety issues associated with this project include: air emissions, energy efficiency and materials management stystem, and the corporate environmental management system, including responsibility for environmental and occupational health and safety issues. The sponsor has submitted adequate information to verify compliance of existing operations with local requirements and World Bank guidelines.The is from the Public Information Center.Date SPI sent to PIC      November 13, 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).