The project sponsor is Vicentin, a private local company founded in 1929. The company’s core business is oilseed crushing and exporting of its byproducts, oil and meals. Vicentin’s operations also include cotton ginning and spinning; formulation of pesticides and herbicides; and meat processing through its subsidiary Friar S.A. (“Friar”).

The total project cost is estimated at $120 million. The proposed investment includes an A Loan of up to $20 million and a C Loan of up $15 million, for IFC’s own account, and a B Loan of up to $50 million.

35.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	35.0
Equity

* These investment figures are indicative

The company has the following facilities:

- oilseed crushing plants and port in San Lorenzo (Santa Fe);
- edible oils refinery in Avellaneda (Santa Fe);
- cotton ginning plants in Avellaneda, Bandera (Santiago del Estero), El Colorado (Formosa), Gral. Pinedo (Chaco) and Villa Angela (Chaco);
- herbicides and pesticides formulation plant in Reconquista (Santa Fe); and
- spinning plant in Reconquista (Vicentin has also a 50% interest in a spinning facility in Brazil). Friar has facilities in Reconquista, Santa Fe City, Desvío Arijón (Santa Fe) and Carcaraña (Santa Fe).

IFC will assist Vicentin, one of the few local players in a globally competitive industry, in securing funds needed to complete its investment program and improve its debt structure. The operations of Vicentin are estimated to benefit indirectly about 4,000 farms (20,000 households). The impact is particularly important in the poor provinces of Chaco and Formosa, where the company’s cotton operations benefit approximately 1,500 farms.

IFC’s participation in the proposed project will provide long-term capital, still scarce in the markets, enhancing the sustainability of an important domestic agro-exporter. IFC will provide technical expertise to assist Vicentin’s in its continuing efforts to strengthen its environmental management systems.

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 and environmental and social conditions at the following facilities: oilseed crushing plants and port; edible oils refinery plant; cotton ginning facilities in General Pinedo and Villa Angela; cotton spinning facility in Reconquista, herbicides and pesticides formulation plant and two Friar facilities (slaughterhouse and sausages plant) in Reconquista.

The following potential environment, health and safety and social impacts of the projects were analyzed:

- Ambient and point source air emissions, including workplace air quality;
- Liquid effluent management, including storm water drainage and treatment;
- Solid waste management;
- Occupational health and safety and food safety;
- Biological and chemical control of pests;
- Complaint mechanism for stakeholders;
- Training of workers and contract workers;
- Labor regulations in Argentina;
- Existing and planned management systems for quality, environmental and social affairs; and
- Acquisition of land (potential issues with resettlement or squatters) for the planned port facility expansion or other infrastructure development.

The company has agreed to address these impacts to ensure that the project will, upon implementation of the specific measures, comply with the environmental and social requirements of the Argentinean laws and regulations and the World Bank/IFC environment and social policies and guidelines. The information about how these potential impacts will be addressed by the company is summarized in the Environmental Review Summary (ERS) disclosed in the World Bank InfoShop.
Location of environmental documents In locally affected community
The ERS will be available to the public at the following locations:

- Municipality of San Lorenzo:
Urquiza 517  -  2200 San Lorenzo, Santa Fe

- Municipality of Avellaneda:
Calle 13 Nº 492 - 3561 Avellaneda, Santa Fe