Wood Manjaca

completed

Summary Of Project Information (SPI)Project NameBosnia and Herzegovina - Wood ManjacaRegionEuropeSectorProject No009969Projected Board DateJanuary 19, 2000Company NameManjaca d.d.Technical Partner and/or Major Shareholders Manjaca was established in 1947 in Mrkonjic, Republic of Srpska, Bosnia and Herzegovina. The company is 100% state-owned. Project Cost Including proposed IFC investment IFC and the company''s agent bank Banjalucka Banka received a proposal for a project cost of DM3.0 million (US$1.67 million equivalent). It is proposed that IFC provides a senior loan of up to 90%, or DM2.7 million, of the total project cost, while the local agent bank Banjalucka Banka participates with remaining 10%, or DM0.3 million, of the funds.     Location of project and Description of site The company is located in the small mountain town of Mrkonjic, 70 kilometers southwest of Banja Luka. The project does not call for any changes or expansion of the location, but only for improvements to the existing facilities and machinery.            Description of Company and Purpose of Project The company produces lumber (beech and softwoods); glued laminated boards; finger-jointed elements; and doors and windows. This project will accelerate the reconstruction of the sawmill and production lines, which were ravaged during the Bosnian war. The purpose of the project is to provide the funds for critical process improvements and working capital to proceed with the refurbishment and revitalization of the recipient’s activities. The investment will promote financial recovery of the wood-processing sector in which Bosnia, due to its abundant beech forests, 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 is an important part of this project, and will help the company to 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: raw material supply source; 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. Manjaca will develop a formal environmental management system addressing compliance, monitoring, and 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 documentsThe ERS is posted on the bulletin board in Manjaca’s administrative offices in Mrkonjic.Date SPI sent to InfoShop December 20, 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).