Wood Agency Credit Line Inga o.d.p

completed

Summary Of Project Information (SPI)Project NameBosnia and Herzegovina - SEF Inga o.d.p.RegionCentral and Southern EuropeSectorProject No009738Projected Board DateSeptember 3, 1999Company NameInga o.d.p.Technical Partner and/or Major Shareholders Inga was established in 1947 in Gradiska, Republika Srpska. The Company is 95% state owned.Project Cost Including proposed IFC investment The total project cost is estimated at up to DM 3.5 million (US$ 1.95 million equivalent). The proposed IFC investment is a loan representing 90% of the project cost. The local agent bank will participate with the remaining 10% of the funds. Privatization of the company within two years of loan-signing is a requirement under the pre-approved IFC loan.      Location of project and Description of site The company is located in the village of Gradiska, about 50 km north of Banja Luka, on the main road to the village. The project does not call for any changes to or expansion of the location, but only improvements to the existing facilities and machinery. Description of Company and Purpose of Project The Company produces PU foam, upholstered furniture, veneered and case goods furniture and steel spring mattresses. The project will involve the refurbishment and upgrading of the furniture production line of veneer furniture components and the upgrading of the foam manufacturing facility. The purpose of the project is to provide the funds for critical process improvements, working capital, and equipment upgrading in order to proceed with the refurbishment and continued revitalization of the recipient’s activities. The investment will promote recovery of the wood processing sector in which Bosnia has traditionally had a comparative advantage. It is expected that the project will result in stabilized income and employment and will enable the company to respond to market requirements. Provision of technical assistance and support in the privatization process, as important parts of this project, will help the company pursue a path of sustainable long-term growth.Environmental Category and Issues This is a category B project according to IFC’s environmental and social review procedure. The key environmental, health and safety issues reviewed during project appraisal were: wood supply source and management; chemical usage, storage and handling; air emissions and workplace air quality; water supply and effluent; solid and hazardous waste management; emergency response and fire protection; and employee health and safety, and training. Inga will develop a formal environmental management system addressing compliance, monitoring, cleaner production, and energy efficiency. Based on its review of available information regarding potential environmental and social impacts and proposed mitigation measures, IFC concludes that this proposed project will meet the World Bank Group’s applicable environmental, health and safety policies and guidelines and the applicable requirements of Bosnia-Herzegovina.     The is from the InfoShop.Host country location of environmental documentsInga headquarters in Gradiska,IFC field office in Banja LukaDate SPI sent to InfoShop August 4, 1999“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).