PROJECT

Projects

Summary of Collaboration or Co-Development Project

Project Number

46863

Date SCCP Disclosed

Nov 4, 2022

Country

Honduras

Region

Latin America and the Caribbean

Last Updated Date

Nov 9, 2022

Industry

Manufacturing

Sector

Fabric Mills

Department

CM1UP - Regional Industry - MAS LAC/MAS Upstream - LAC

Project Description

 IFC is partnering with Interamericana de Valores, S.A de C.V. (Kattan Group) to jointly explore the development of a textiles production plant in Honduras, potentially including yarn spinning operations. The plant would allow for the production of woven fabrics, observing international best practice with regards to environmental, social, and governance (ESG) standards. This first engagement serves to assess the market conditions, technical requirements, and regulatory context including trade agreements which would impact the project. In addition, IFC and Kattan Group jointly seek to identify a strategic partner to join the subsequent phases of project development and ultimately start operations. Learn more about Kattan Group at: https://www.kattangroup.com/.

E & S Information

During this pre-feasibility first phase (Phase A), Kattan Group and IFC seek to understand the underlying economics of the planned project to lay the foundation for competitive textile production in Honduras. IFC will also support Kattan Group by sharing international ESG best practices, such that the project is designed, constructed? and operated in compliance with applicable E&S laws and IFC Performance Standards. If the project proceeds to full feasibility (phase B), IFC will support with a detailed review of existing practices, a comprehensive site assessment and an in-depth environmental and social risk analysis including, but not limited to the assessment of emissions, management of hazardous materials, waste water effluent disposal and treatment, labour practices, biodiversity, community health, safety and security practices, supply chain and impacts on indigenous people (where applicable).