The project sponsors are Chief Echeme Nnana-Kalu, Mr. Eleanya Okoroji and Mr. Robert Nnana-Kalu. Star Paper is a local private company with 30 years experience in the paper industry. The Sponsors own shareholding of 37%, 32% and 16% respectively in the business. Other family members own 3% and the Staff Share Scheme owns the remaining 2%.

The total project cost is estimated at $28.0 million. The proposed IFC Investment is a $10 million A Loan for IFC’s own account.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

The company has a tissue mill located on 10 hectares of land along the Imo River at Owerrinta and a printing and stationery manufacturing facility in Aba. Both facilities are situated in Abia state, Nigeria. In addition to the manufacturing facilities, Star Paper has branches/depots at Lagos, Kaduna, Ibadan, Onitsha, Kano, Aba and Suleja. These locations have been major assets in terms of collection of raw materials and distribution of finished products across the country. All Star Paper’s facilities have good access to infrastructural facilities such as electricity, telephone, access roads and railway. Owerrinta and Aba town are located on a triangular stretch of road leading to: - The oil producing areas of Rivers, Delta, Cross Rivers and Akwa Ibom states. - The commercial centers of Onitsha, Nnewi and Abakiliki. It is equidistant to the export processing zones of Calabar and Onne. The towns are close to two international airports: Port Harcourt and Calabar, besides being close to the domestic airports of Owerri and Enugu.

The project will benefit the country by transforming recycled paper into converted tissue paper and thereby avoid importing tissue jumbo reels. Since tissue has a high volume to weight ratio, its per ton transportation cost is approximately five times that of recycled paper. Handling and distribution costs are also reduced. In addition, the project almost doubles the value added of producing converted paper by going further up the input stream to recycled paper. The project has resulted in the employment of 106 additional staff and it will support the viability of an important source of employment for up to 900 people in the company who are mostly from the poor region of the oil producing Delta region of Nigeria. Non-quantified development impacts include: Environment, Social, Health, and Safety: The company significantly contributes to collecting and recycling wastepaper generated in Nigeria, as it is the raw material it utilizes to produce paper. By adopting IFC's environmental health and safety standards, the company will adhere to stricter international practices, while providing its employees with safer working conditions. The host community will also benefit through greater direct and indirect employment in the area. The presence of the company in the area has enabled the community to have access to reliable power supply and improved infrastructure.

IFC’s expected development contribution includes improved environmental compliance and corporate governance by the company. Further, a planned Technical Assistance component could further enhance the company’s management information systems (MIS) and help in improving logistics.

IFC appraised the following social and environmental issues associated with this project:
- environmental, health and safety management systems;
- community expectations with respect to economic opportunities associated with the project;
- labor relations;
- sourcing of fiber, particularly any child labor associated with the collection of recycled fiber;
- occupational health & safety management, including fire & life safety;
- treatment and disposal of liquid effluent;
- disposal of solid sludges from the pulping process;
- the use and handling of hazardous materials;
- monitoring and control of air emissions from boilers and stacks; and
- use of security personnel.

The sponsor has presented plans to address these impacts and thereby to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements.