SUGAR(KWILU NGONGO)

closed

The Kwilu-Ngongo Sugar Project for Zaire will include: (i) rehabilitation and extension of an existing sugar plantation, including provision of equipment for land preparation, cultivation and harvesting; (ii) rehabilitation of transport infrastructure, and provision of equipment for sugar cane transport and track maintenance; (iii) civil works for the rehabilitation and expansion of processing facilities and construction of offices and staff housing; (iv) design and implementation of an applied research program on sugarcane; (v) purchase and installation of a data processing and management information system; (vi) staff training; and (vii) pilot projects to promote food-crop production. The project faces few technical, commercial or managerial risks. There are some risks of delays in project implementation due to the general economic conditions in Zaire. The main risks will be a deterioration of the Company's financial situation if the government failed to increase sugar prices to reflect production costs, or to provide foreign exchange to purchase agricultural inputs, spare parts and supplies. To reduce these risks, the Government has agreed that sugar prices will be reviewed whenever required and has established a mechanism to allocate foreign exchange to Compagnie Sucriere.