The project sponsors are owner-operators who have been involved in the Middle Eastern poultry industry for over 46 years and in the Egyptian poultry industry for the past 20 years. The main project sponsors are: Messrs. Musa S. Freiji, Tony S. Freiji, Ramzi P. Nasrallah and Khalil P. Nasrallah. The investment program includes the establishment of a new glass packaging company, Wadi Glass Container (SAE), which is a joint-venture and whose shareholders are Wadi (70%), Hwa Hsia Glass Company of Taiwan, China (12%), Mr. J.J. Jow, chairman of Jochlenlee Molds & Machine Manufacturing, Inc. of Singapore (3%), and Mr. Samih Sawiris of Cairo (15%).

The estimated total project cost is $46.6 million, including working capital. The proposed IFC investment is a $15 million Loan for IFC’s own account.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

Wadi’s headquarters are located at 10 Mahager & Managem Street, Mohandessin, Cairo, Egypt. Wadi’s operating subsidiaries are located along the Cairo-Alexandria Desert Road. Those companies which are expected to use IFC’s financing are as follows:

Rula Company for Land Reclamation:

Location 1:
KM 49 from Cairo
Cairo-Alexandria Desert Road
Giza, Egypt

Location 2:
KM 54 from Cairo
Cairo-Alexandria Desert Road
Giza, Egypt

Location 3:
KM 84 from Alexandria
Cairo-Alexandria Desert Road
West Noubariya
Beheira, Egypt

Wadi Farms:
KM 49 from Cairo
Cairo-Alexandria Desert Road
Giza, Egypt

Wadi Poultry Parents:

Hatchery:
Lot Number 190
Industrial Zone No. 5
Sadat City
Menoufiya, Egypt

Farms:
KM 49 from Cairo
Cairo-Alexandria Desert Road
Giza, Egypt

Wadi Food Industries:

Location 1:
KM 54 from Cairo
Cairo-Alexandria Desert Road
Giza, Egypt

Location 2:
Lot Number 7, 8/2
Industrial Zone No. 3
Sadat City
Menoufiya, Egypt

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Review of this project consisted of appraising technical and environmental /social information submitted by the project sponsor and a physical review of all existing operations and sites proposed for expansion in Egypt. The following potential environment, health and safety and social impacts of the Project were analyzed.

- Management systems for quality, food safety and environmental affairs;
- Sustainability of farming practices and activities;
- Sustainability and quality of potable water for farming, animal rearing and food processing;
- Discharges to the environment (air emissions and wastewater);
- Solid waste management;
- Proposed glass manufacturing operation;
- Occupational health and safety; and
- Future poultry and agricultural expansions in North Africa and in the Middle East region.

Location of environmental documents In locally affected community
Environmental Review Summary and Environmental Action Plan for the investment are available for review at the following location:

Sadat City Investors Association
28 Aby Zer Elghafary
1st Residential District
Sadat City
Menoufia
Egypt

IFC’s investment will support the further development of a successful private sector company in Egypt’s poultry and food sector. Drawing on its operational, technical and managerial capabilities, Wadi is expanding and diversifying its poultry and food activities and entering the complementary container glass industry. It will develop a broiler chicken production system based on contracts with outgrowers, which will be one of the first in Egypt for poultry. The investment program will create about 1,000 jobs in Egypt over the next four year period. The new glass company will employ modern glass technology provided by Hwa Hsia.

Mobilizing its global agribusiness and industrial experience, IFC specialists and consultants will provide financial, technical, environmental and best management practices resources to Wadi. IFC’s loan will help Wadi achieve a more balanced debt structure. Its loan will include a long grace period to help the new agribusiness investments to become well established prior to the beginning of principal repayment. IFC will support agribusiness and food processing which are critical sectors in Egypt. These sectors benefit from Egypt’s comparative agricultural advantages, a growing economy, and proximity to export markets. IFC will provide financing and technical services which will facilitate Wadi’s transition to an international enterprise.