Two founders and management team own 47.47% through Jinan Hezhou Investment Consulting Co., Ltd. Jiangxi Yonglian Agriculture Holdings Co., Ltd owns 38.85%, IFC owns 13.68%.                                                   

The estimated total cost is US$48 million. IFC will invest an A Loan of up to US$10 million equivalent.   

Jilin, Inner Mongolia and Shandong, China                                      

Low                                                   

The key E&S issues identified during the previous appraisal included the following: (i) operational licenses of HKY’s facilities; (ii) environmental, including bio-security and disease prevention, OHS, and social management system and related procedures and effective implementation; (iii) adherence to Chinese labor law, terms of employment and working/living conditions for farm workers accommodations, including at contracted farms; (iv) Life and Fire Safety (L&FS) provisions and emergency preparedness and response procedures, including avian flu; (v) use of public utilities (water supply and energy), optimization of water and energy use through design and resource conservation measures, including greenhouse gas emissions; (vi) wastewater and solid waste management, air emissions from generators, boilers and heating (coal) systems, potable water quality, treatment and monitoring, hazardous material handling, management and control of pests and rodents; and (vii) engagement with communities on E&S risks.

Given that this investment is to be used to support similar operations to those previously appraised, namely the development of additional breeder farms and associated support infrastructure, such as feed mills and hatcheries, and as all these facilities will be designed and operated as prior facilities have been, this appraisal found that these above issues are still relevant to the Company operations.

The potential adverse environmental and social risks and impacts associated with this project are limited, site-specific and can be readily addressed through good international industry practice (GIIP) and mitigation measures that are described in this document and in the attached Environmental and Social Action Plan (ESAP). This is a category B project in accordance with IFC’s Policy on Environmental and Social Sustainability.