Environmental & Social Review Summary
Project Number
27005
Company Name
PRAN DAIRY LIMITED
Date ESRS Disclosed
Jun 20, 2008
Country
Bangladesh
Region
South Asia
Last Updated Date
Jun 3, 2021
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jan 22, 2009
Signed : Feb 23, 2009
Invested : Mar 9, 2009
Sector
Fruit and Vegetable Preservation or Processing (Canning, Freezing, Drying, Jams, etc.)
Industry
Agribusiness and Forestry
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
PRAN is the leading food processing company in Bangladesh and is believed to be processing about half of the horticulture produce that goes to the processed channel in the country. The company produces and distributes fruits juices, snacks, confectionery, culinary products, dairy and soft drinks. It enjoys a strong brand reputation in the country and exports its products to 70 countries. The company has requested IFC for assistance to finance its corporate plan to expand capacity and improve operating efficiencies, aimed at satisfying growing domestic demand and capitalizing on export opportunities.
The project includes:
- increasing snacks and confectionery production capacity, including production of packaging materials and glucose;
- increasing beverage and juice production capacity and purchase of preform and mold blowing machines for packaging materials;
- increasing dairy collection and processing capacity;
- increasing premium rice processing capacity;
- purchase of utility equipments; and financing maintenance capex and additional working capital needs.
The project includes:
- increasing snacks and confectionery production capacity, including production of packaging materials and glucose;
- increasing beverage and juice production capacity and purchase of preform and mold blowing machines for packaging materials;
- increasing dairy collection and processing capacity;
- increasing premium rice processing capacity;
- purchase of utility equipments; and financing maintenance capex and additional working capital needs.
Overview of IFC's Scope of Review
International Finance Corporation’s (IFC) review of this corporate investment has identified the following potential environmental, social, health & safety issues which have been examined during the appraisal: development and implementation of corporate and facility-specific integrated environmental and social management systems; land acquisition for plant expansion; air, water and solid waste handling in production facilities; use and management of pesticides; occupational health and safety considerations for employees; water supply sustainability; agricultural product supply chain management, including use of child labor and good agricultural practices; and food safety and sanitation, including certification. The nature of company operations is such that it will be possible to readily design and implement engineering and management measures to mitigate any adverse impacts that result from the project.
In light of the fact that mitigation measures can readily be designed, adverse impacts are not expected to be diverse or irreversible and will be limited to project site, and as the project will not lead to physical or economic displacement of communities, the project has been classified as a Category B.
In light of the fact that mitigation measures can readily be designed, adverse impacts are not expected to be diverse or irreversible and will be limited to project site, and as the project will not lead to physical or economic displacement of communities, the project has been classified as a Category B.
