The project is sponsored by Favorita Fruit Co. Ltd. (Favorita), the holding company incorporated in the British Virgin Island owned and controlled by the Wong family (98% ) and IFC (2%).

The total project cost is estimated at $80 million. The proposed IFC investment is a $18 million
A loan, a $7 million C Loan and $23 million syndicated B Loan.

25.0 million (USD)

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

* These investment figures are indicative

The company is headquartered in Guayaquil. The proposed investment program will affect all of the production locations operated in the company. The existing fertilizers storage capacity to be expanded is located in Guayaquil. The company’s equipment and machinery to be replaced and modernized are cited in the cities of Machala, Guayaquil and Quevedo. The hydroelectric plant will be located on the Rio Bimbe, in the Los Rios province (some 40km southwest from Santo Domingo and 15km northwest of Patricia Pilar).

The project supports the continued development of one of Ecuador’s leading agribusiness companies and a long standing excellent IFC client. It will improve Favorita’s competitiveness in the production and commercialization of bananas, as well as other secondary activities such as processing of dairy products, cardboard boxes, port activities and fertilizer business. Finally, the project will result in an additional supply of renewable energy, in a country with unreliable and insufficient sources of electricity.

The key role of IFC will be in providing:

- long-term financing with maturity currently unavailable in Ecuador;
- help in securing additional debt from commercial banks under a B-loan umbrella
- assistance in developing a long-term business strategy for the company; and
- assistance in developing a renewal and reliable energy supply

This is a Category B project according to IFC''s Environmental and Social Review procedure 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. Applicable Performance Standards are:

- PS1: Social and Environmental Assessment and Management System
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS 5: Land Acquisition and Involuntary Resettlement,
- PS 6: Biodiversity Conservation and Sustainable Natural Resource Management

Environmental and social review of the project included evaluation of environmental and social information presented by Favorita. In addition, IFC professional staff performed a physical evaluation of the company and environs, and reviewed relevant Company and government documentation. Key issues will be addressed as detailed in the Environmental and Social Action Plan (ESAP). There are no known Indigenous Groups or Cultural Property in the project area.

Please refer to the IFC Environmental and Social Review Summary available at the World Bank Infoshop for additional information.