23736 - Kongoni River Farm

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Summary of Proposed Investment

Project Number

23736

Company Name

Kongoni River Farm Limited

Date SPI Disclosed

Oct 7, 2004

Country

Kenya

Industry

Agribusiness and Forestry

Projected Board Date

Nov 17, 2004

Status

Completed

Sector

Horticultural Products (Flowers)

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : Dec 29, 2004
Signed : Jun 9, 2005
Invested : Sep 16, 2005

Project Description

The project entails the establishment of Kongoni River Farm (Kongoni), an 86 hectare farm comprising 20 hectares of roses under steel greenhouses. The farm, located in the high altitude locale of Timau, on the foothills of Mt. Kenya, will be implemented in two phases of 10-hectares each.

The project represents an expansion of the sponsors existing flower operations in response to market demand and the need for geographic diversity of production sites. Additionally, the higher altitude and climatic conditions at Timau will enable the production of a broad variety of roses including large head, long stem roses which command a market premium.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	2.10
Equity

Development Impact

The project will support the development of Timau, a rural agrarian region, through job creation and diversification of economic activity. It will create approximately 600 jobs and, at full capacity, earn the country foreign exchange inflows of approximately $4 million each year. Through “IFC Against Aids”, the project will assist the sponsors to develop HIV/AIDS policies and awareness initiatives, which will have a positive impact on the community.

The sponsors pride themselves on being socially responsible and are very interested in support which IFC can provide to complement and augment its policies on labour welfare, best environmental practices and community development. With a staff count of 4,500 and an outgrower reach of 500 families, IFC will assist in developing HIV/AIDS policies and procedures.

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 which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental and social information submitted by the project sponsor. The following potential environment, health and safety and social impacts of the projects were analyzed.

- Land Use;- Integrated Pest Management (IPM);- Pesticides Handling and Application;- Waste Disposal and Recycling;- Water Supply;- Power Supply and CFCs;- Employee Housing; and - Labor Policy and Standards.
Location of environmental documents In locally affected community
The ERS will be placed at the District Officer''s Office and the Local Chief''s office. A notice will be published in a local newspaper, indicating that the ERS is available for review at these locations.

Contacts

For Inquiries About the Project, Contact

Kongoni River Farm Limited
3rd Floor, Museum Hill Centre
Museum Hill Road
P O Box 10719, 00100
Nairobi, KENYA

This Summary of Project Information (SPI) is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC's activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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