ECOM was founded in 1849 in Barcelona, Spain by the Esteve family which is still the majority owner (92%). The balance of 8% is owned by management.

The total project cost is estimated at $50 million. The proposed IFC investment is a $25 million A loan for IFC’s own account.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

The IFC Loan will be provided to ECOM. The company which will then make the funds available through trade-prepayments to its operating subsidiaries in Latin America and Central America which in turn will on-lend them to producers supplying coffee to ECOM (mainly Nicaragua, Guatemala, Costa Rica, Honduras and México).

Ecom is developing this project as part of its ongoing efforts to improve supply chain quality and sustainability of agricultural production. The project’s development impact includes continued direct benefits to rural populations and a demonstration impact on sustainability.

IFC investment will extend term financing for capital improvement requirements of coffee producers, which is currently not available under existing working capital lines extended to ECOM. Ecom will also work with IFC on documentation and implementation of standardized best practices at existing facilities.

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 project is based on the increase and spread of best management practices and so is designed to move the broader supply chain to exceed minimum compliance standards. Review of this project consisted of appraising technical and environmental and social conditions at the following facilities in Mexico: Decaffeination Plant in Cordoba; Coffee Mill and Plantations in Ixhuatlan del Café; Cocoa Plant in Veracruz; and a Hog Farm in Perote.

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

- Corporate environmental and social management capacity;
- Supply chain management;
- Ambient and point source air emissions, including workplace air quality;
- Liquid effluent management;
- Solid waste management;
- Occupational health and safety; and
- Labor practices.

The company in this project is aiming to improve practices throughout the coffee supply chain and has agreed to address throughout all its operations these impacts to ensure that it will, upon implementation of the specific measures, comply with the environmental and social requirements of national laws and regulations and the World Bank/IFC environment and social policies and guidelines. Information about how these potential impacts will be addressed by the company is summarized in the Environmental Review Summary (ERS) and Corrective Action Plan (CAP) disclosed in the World Bank InfoShop.