PROJECT

Projects

Environmental & Social Review Summary

Project Number

48949

Company Name

La Joie de Hicha

Date ESRS Disclosed

Jul 31, 2024

Country

Tunisia

Region

Africa

Last Updated Date

Jun 19, 2025

Environmental Category

A - Significant

Status

Active

Previous Events

Approved : Oct 30, 2024
Signed : Jan 16, 2025
Invested : Jun 16, 2025

Sector

Fruits and Vegetables

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS Africa

Project Description

The sponsor is a company called Agro Care (https://www.agrocare.nl/en), headquartered in the Netherlands with operations in the Netherlands, France, Morocco and Tunisia, one of the largest cherry tomato producers in Europe. The proposed investment is for a greenfield project, known as Hicha II, located north of Gabes on the Tunisian coast, adjacent to Hicha I, an existing Agro Care (AKA the “company”) operation. Hicha I (which is not subject to IFC financing) is a series of greenhouses covering 40 hectares, already producing tomatoes. Hicha II will involve the construction of five glass greenhouses (enabling 50 ha of tomato production), one warehouse, a proposed Combined Heat and Power (CHP) plant and a desalination plant to provide irrigation to the tomatoes for a total investment of c. EUR 134m. IFC will invest up to €68.1 million (including an A-loan of up to €39 million and up to €29.1 million in a syndicated loan to be mobilized) (the “project”).

 

The greenhouses for Hicha II will be built over the period 2024 –2027 with a surface area of 10 ha each. Construction will be managed by the same Serbian contractor that built the existing operations in Tunisia and will use local contractors. The glass greenhouses, modelled after the greenhouses already in use in the company’s Dutch operations, will be state of the art and will allow opening of the roof via panels to help regulate the inside temperature and optimize the growing climate. Given the availability of sunlight in Tunisia, they will not need artificial light. Tomatoes will be irrigated using drip irrigation.

 

Water for irrigation will be obtained from the adjacent Mediterranean Sea, pumped via a 3.5 km long raw water intake pipe into a desalinization plant, where it will be processed and circulated into the greenhouses. The brine generated by processing will be returned to the sea in a 2.5 km long offshore brine return pipe. The desalinization plant will use reverse osmosis (RO).

 

The CHP plant will provide heat, electricity and carbon dioxide (CO2.) It will be fueled using natural gas and utilize highly efficient internal combustion engines, the likes of which are employed in Agro Care’s Dutch operations.  The size of the plant is still being finalized but is expected to be in the order of 10MW. Excess electricity, if any, will be sold to the national grid.

 

The land upon which Hicha I has been built, and where Hicha II will be built, was obtained via a long-term lease, obtained by the company from the Government of Tunisia in a public tender, held in 2021. Classified as agricultural land, but ostensibly barren desert without any infrastructure capable of supporting agriculture, the 200-hectare parcel, located 4 km north of the village of Akarit, itself 30 km north of Gabes, is large enough to construct up to 122 hectares of greenhouses and associated infrastructure.

The project is adjacent to a Ramsar site (Complexe des zones humides des Chott el Guetayate et Sebkhet Dhreia et Oueds Akarit, Rekhama et Meleh https://rsis.ramsar.org/ris/2076), the latter of which will be crossed by the raw water input and brine return pipes.

Overview of IFC's Scope of Review

IFC visited the company’s existing operations in Tunisia, known as Desert Joy and Hicha I, to observe how the company manages its environmental aspects. Established in 2013, Desert Joy now includes 40 ha. of greenhouses, employs 900 people and produces approximately 9M kg of tomatoes per annum which are grown according to the criteria set out within the Fairtrade certification scheme, a credible, well known sustainability standard. Meetings were held with the CEO, Environmental & Social (E&S) Lead, Human Resources (HR) leads for Tunisian operations and other senior management. The IFC team visited greenhouses, warehouses, packing areas, project infrastructure sites (including water filtration, water recirculation, solid waste management area, equipment maintenance areas, staff transport areas, staff canteens and the company kindergarten).

IFC also visited Hicha I, which was begun in 2022 and currently has four greenhouses in operation as well as a warehouse. IFC also saw the site slated for development into Hicha II; where preliminary construction activities (demarcation, driving piles for foundation work, etc.) were underway. Meetings were held with Hicha I management and with those responsible for developing Hicha II, including those in charge of the design of key infrastructure elements such as the desalinization plant. A visit to the boundary of the Ramsar site was undertaken.

In addition to reviewing Tunisian operations, IFC travelled to see Agro Care’s production operations in the Netherlands, located at Middenmeer and Maasdijk. These sites, which have been long established, included tomato production within greenhouses, warehouses, and CHP plants and associated infrastructure which was not currently in use in ongoing operations in Tunisia. The visit to the Maasdijk operation also afforded IFC the opportunity to meet with staff and management of Harvest House (HH). HH is the marketing arm of the co-operative to which Agro Care belongs and are responsible for selling the tomatoes to customers. IFC met HH ESG staff and management who design and manage over-arching E&S programs to respond to customer requirements and drive E&S performance in all co-op member companies.

Following the above site visits, follow up calls and discussions were held with teams responsible for developing the project Environmental and Social Impact Assessment (ESIA), for stakeholder engagement (including with the fishers) and those leading on the assessment of project biodiversity risks and impacts.                                                    

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
61-02-EIES-desert Joy El Hicha-mission 1-def-3.pdf
Hicha JOY BMEP.pdf
Hicha Joy CHA.pdf
Hicha Joy BAP.pdf
61-02-EIES-desert Joy El Hicha-mission 2-pre-definitif.pdf