The project will expand the Sharma Group paper operations to Trinidad and Tobago. At present, the supply of locally sourced tissue paper is very limited in the Caricom region. The aim of the investment is to establish a local tissue paper source for the paper converters in Trinidad and the whole Caricom region. The mill will use local and imported wastepaper and market pulp. It will produce high quality parent jumbo paper rolls to be sold to local and regional downstream converters for the production of bath tissue, napkins, facial tissue, kitchen and industrial towels. The mill is expected to start production in the early part of 2002.

Unicell will be the first, and only, wastepaper consumer in Trinidad and Tobago, thus having an important role in developing the region''s waste management system. The Project will also have a positive impact on the local converters’ efficiency and competitiveness, serving as a net import substitution for the area, and filling an important supply gap.

IFC Role:
Because the Sponsor is new to Trinidad and Tobago, the technology is unknown to local bankers and the Project is greenfield, the Sponsor would not have been able to raise the required financing from local sources. IFC will provide long-term funds with a long grace period to cover start-up and initial market risks. Moreover, IFC will have an important role to play in assisting to raise co-financing in local currency to help mitigate the Project''s currency exposure. Also, by including co-financing in the financial plan, IFC will assist the Sponsor in forming relationships with local and/or international banks operating in Trinidad and Tobago. Finally, IFC will provide environmental oversight to ensure that the Project meets the World Bank Guidelines.

Development Impact:
The Project will provide a strong positive developmental impact in Trinidad and Tobago by creating jobs, helping to reduce paper pollution, and cleaning up the environment through wastepaper collection. Less than 20% of the paper consumed in Trinidad and Tobago is collected given the lack of paper recycling facilities in the Caribbean region. The Project will recycle wastepaper and give economic incentives to increase the collection capacity in Trinidad and Tobago and in most of Caricom. Moreover, the region will benefit from the Group''s significant experience in wastepaper markets and in organizing its collection to improve the efficiency of collecting systems.

Additionally, the Project will introduce state-of-the-art technology to Trinidad and Tobago and will disseminate new operating, marketing, maintenance, and management skills in the country. It will directly employ about 70 people and will also generate secondary employment of about the same magnitude, as wastepaper collection is very labor intensive and employs unskilled labor.