Agrokasa is part of Corporación Drokasa, Peru’s leading producer and distributor of asparagus, grapes, pharmaceuticals, agrochemicals and health and beauty products. Agrokasa’s current shareholding structure is Drokasa Peru S.A. (38.7%), Corporacion Drokasa S.A. (34.4%) and Farmindustria S.A. (26.9%). In June 2005 Agrokasa, Farmindustria, Pharmalab and Drokasa Peru issued a $25 million bond. IFC participates in providing partial guarantee of the bond.

The total project cost is estimated at $36.3 million. The proposed IFC financing consists of up to $17 million loan to Agrokasa, which will support the expansion of the company’s operations.

15.0 million (USD)

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

* These investment figures are indicative

Agrokasa’s farms and packing plants are located in Ica, Barranca, and Supe.

The project is to finance the acquisition of the assets of a bankrupt company, to refurbish these assets and to build new packing facilities in order to rehabilitate production of asparagus and to start production of avocados in a financially and environmentally sustainable way. New plantings and better management of the operation will provide a higher return to the land, while generating employment opportunities for the local population of Barranca, Supe and other nearby towns. From its inception, the Company has been a major contributor to the local economy. It has created a significant economic activity based on the export of asparagus and grapes, thus creating jobs at various skills levels in rural areas. With the expansion in Barranca and Supe, it is expected that an additional 1,200 employees will be hired. By 2008 the Company expects to have hired an average of 2,200 workers. IFC’s Role: Supporting Mid-Sized Local Agribusiness Company: IFC would be helping a mid-sized local agribusiness company in enhancing their longer-range planning as IFC provides appropriate longer term debt to match the Company’s developmental plans. This would allow Agrokasa to upgrade its production capacity and operations that would ensure competitiveness. Supporting an Export-Oriented Company: IFC would be supporting an export-oriented company and indirectly contribute to the growth of foreign exchange reserve of local economy. Positive Impact on Environmental Management and Monitoring: IFC’s environmental recommendations from the previous project with Corporacion Drokasa have resulted in an increase of the Corporacion Drokasa’s investment program in the environmental area, which has had a positive impact on environmental management and monitoring. With this new investment, Agrokasa will extend these environmental programs to its operations in Barranca and Supe.

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 social conditions at the farm in Barranca and packaging warehouse in Supe.
Location of environmental documents in locally affected community
Local newspapers: Diario El Comercio in Lima and Diario ECOS in Huacho (covers Barranca, Huacho, Cajatambo and Oyón). On site: Documents will be posted in the packing plant of Supe (PESU) and in the entrance of Las Mercedes in the following addresses: Las Mercedes: Fundo El Pedregal s/n; Barranca , 150201, Lima. PESU : Carretera Panamericana Norte KM 184.5 - Barranca - Supe Puerto 150205, Lima The Company will organize a meeting with local interest people and institutions to inform about their plans and projects, including all the environmental plans to be developed.