SEF Societe Industrielle d'Emballage et de Conditionnement

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name MALI - SIECORegion Sub-Saharan AfricaSector Plastic packagingProject No 008474ProjectedBoard Date June 15, 1998Company Name: Société Industrielle d’Emballage et de Conditionnement (SIECO)Technical Partner and/or Major ShareholdersSIECO SA is a small limited liability company with a share capital of CFA 5 million (to be increased to CFA 50 million) founded in 1993 by Mr.Mohamed Ghassane Fakhry to manufacture and sell liquid cleaners, detergents and plastic bottles for the local market. The Company has now identified a growing demand for plastic bags and has decided to diversify into manufacturing of bags and films for sale to the local market.  SIECO is fully owned by Mr.Ghassane Fakhry, a member of a prominent Ivorian family of Lebanese origin.Project Cost Including Proposed IFC InvestmentThe total project cost is estimated at US$ 1.2 million equivalent, financed by equity and loans. IFC''s investment would amount to US$ 0.5 million or 40% of total project cost and will consist of a local currency guarantee.Location of the project and description of the siteThe site has been leased from the Government for a 10-year period, with a promise for sale  and has all necessary permissions granted for the construction of a factory building and for the ongoing use for industrial purposes.  Access to the site is through a fully graded road maintained by the municipality. One of the city’s electricity generating stations is near by, located approximately 100 meters from the site on the other side of the access road. Water is piped to the site from the city water main network. Surface water run-off from the site is by existing gullies, onto adjacent fields and open areas and eventually to the river which is approximately 400 meters distant.Description of Company and Purpose of ProjectThe objective of the project is to streamline existing production activities and to install a new production facility for plastic bags. Existing operations are severely hampered by lack of space and poor working conditions. The Company has acquired a site that is located  within the industrial zone of Bamako. The new factory currently under construction, will improve the efficiency of the existing production lines and provide a suitable accommodation for the new plastic bags production plant.The new factory will house the relocated existing plastic bottle and tub moulding machinery, the mixing/filling unit for the existing product lines, and the new plastic bags unit.  At full capacity, SIECO expects to produce 578 tons of plastic bags.Environmental Category and IssuesThis is a category B project according to IFC’s environmental review procedure.  The key environmental and health and safety issues include air emissions; solid and liquid waste management; storage and handling of hazardous materials; fire prevention and emergency response; and workplace health and safety (including employee exposure to high temperatures, toxic fumes, dust, and noise).  No air emissions of significance are produced by the plastic molding process used at the facility.  Machinery washwaters will be collected and discharged to holding tanks, which will be periodically emptied by a private company.   Sanitary wastewaters will be separately discharged  to the municipal sewerage network.  Solid waste plant sweepings will be mixed with other trash and disposed in the Bamako municipal dump.  No toxic chemicals are used in the plastic molding process.  Adequate fire prevention and safety is provided.  SIECO will provide adequate health and safety features in the production area, and the necessary personnel protective equipment will be provided to employees, as appropriate.IFC will monitor the sponsor’s ongoing compliance with World Bank policies, and environmental, health and safety guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC.The Environmental Review Summmary is expected to be available on May 26, 1998 at the Infoshop.Date SPI Sent to Infoshop: May 18, 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 UnitTelephone:   (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).