Summary of Proposed Investment
Project Number
10138
Company Name
Vegetables and Flowers Exports S.A.
Date SPI Disclosed
Apr 14, 2000
Country
Burundi
Industry
Agribusiness and Forestry
Status
Completed
Sector
Horticultural Products (Flowers)
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : Jun 5, 2000
Signed : Aug 10, 2000
Invested : Feb 22, 2001
Project Description
Summary Of Project Information (SPI)
RegionSub-Saharan Africa
Sector
Project No010138
Projected Board DateMay 15, 2000
Company NameVegetables & Flowers Export SA
Technical Partner and/or Major Shareholders
The project is being implemented by Vegetables and Flower Export SA. a company is owned by Mr. Hermenegilde Ndikumasabo and his spouse, Mrs. Felicte Ndikumsabo. Both are Burundi citizens. Mr. Ndikumasabo is currently vice-president of the Burundi Chamber of Commerce and Industry and is prominent in local business circles. He has interests in coffee exports, a cattle ranch as well as a dairy plant in Bujumbura.
Project Cost Including proposed IFC investment
The total project cost is estimated at US$1.161 million, of which IFC is requested to provide a term loan of US$0.46 million, equivalent to 40% of the project cost
Location of project and Description of site
The project will be located on a 390-hectare farm, owned by the sponsors, at Gifurgwe, Mpanda district, some 12 km from Bujumbura airport. The roses will be grown in wooden greenhouses and exported by air to the European Union market.
Description of Company and Purpose of Project
The project will grow 4 varieties of roses in 3 hectares of greenhouses for export by air to Europe. The cut roses will initially be sold through the Flower Auctions in Netherlands, which has been the manner of market entry for many other previous IFC rose projects in East Africa. The role of IFC has been to assist in the project structuring through the Africa Project Development Facility in Nairobi, to provide a long-term forex loan, and to ensure that the project complies with the World Bank Environmental policies. In addition to creating rural employment and earning foreign exchange, the project will serve has a powerful demonstration of the viability of exporting non-traditional crops from a land-locked Burundi by air to European markets. It offers local businessmen an alternative investment activity to coffee and tea exports.
Environmental Category and Issues
This is a category B project according to IFC''s environmental and social review procedure. The environmental and social issues associated with this type of project and analyzed during appraisal include: land use, integrated pest management (IPM, pesticides use and handling, power and water supply, waste disposal, CFCs, employee safety and training and employee housing. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet World Bank Group environmental, social, health and safety policies and guidelines and host country requirements by project completion.
The is available from the InfoShop.
Host country location of environmental documentsOffice of the Burgomaster at Mpanda Commune, Province of Bubanza, Burundi
Date SPI sent to PIC April 14, 2000
“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) 473-7711
facsimile: (202) 974-4384
Environmental 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).
Sponsor / Cost / Location
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