Wings SouthSouth

completed

The proposed investment is to support the Wings Group of Nigeria (“Wings” or the “Group”) with the development of a greenfield detergent manufacturing facility in Nigeria (“the Project”). In addition, the Group is also planning to develop a greenfield food manufacturing facility (“food facility”) in Nigeria. The Wings Group is headquartered in Indonesia where it has various operations and the Group commissioned its first powder detergent facility in Nigeria in September 2007. This facility is located at Igbessa in the OPIC Industrial Estate situated in Ogun State some 40 kilometers from central Lagos. The Project is being constructed on an adjacent 3.6 ha site and is expected to be commissioned in August 2013. This facility is being implemented under a Nigerian registered company, Natural Prime Resources Nigeria Ltd. (“Natural Prime”) which is majority owned by Wings. The Group is still in the preliminary stages of designing the food facility with limited information on the project currently available. However, Wings has extensive experience in such operations in Indonesia and is assessing various possible locations for this facility. While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards (“PS”) dated April 2012:PS 1: Assessment and Management of Environmental and Social Risks and ImpactsPS 2: Labor and Working ConditionsPS 3: Resource Efficiency and Pollution PreventionPS 4: Community Health, Safety and SecurityPS 6: Biodiversity Conservation and Sustainable Management of Living Natural ResourcesThe Project is located within an established industrial area and the land was acquired on a willing buyer-willing seller basis. In addition, this land had been previously cleared and developed. Thus PS 5: Land Acquisition and Involuntary Resettlement, PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources and PS 8 Cultural Heritage do not apply to the Project. The land for the new food facility is still to be identified. Thus PS 5, PS 6 and PS 8 may all, or individually, apply to this project. Once the land has been identified, Wings will engage with IFC to confirm the approach to the assessment of this facility and the extent to which the PS’s apply to this component will determined at that time. Palm oil will likely be required in the manufacturing process for the food facility and thus there is the potential that such oil could be sourced from areas contributing to significant conversion of natural and/or critical habitats. Mitigation measures have been defined to address this issue, however in such an event, PS 6 would apply. There are no Indigenous Peoples in Nigeria, thus PS 7: Indigenous Peoples is not applicable to either of the developments.