The project sponsors are Agrifinal N.V., a new privately-owned agribusiness investment company incorporated in Belgium and Compagnie International de Cultures (Intercultures), an existing agribusiness company registered in Luxembourg. Intercultures has investments in oil palm and rubber estates in four African countries, Cameroon, Cote d’Ivoire, Liberia and Nigeria. It also has a rose flower plantation in Kenya.

Salala is owned 90% by Agrifinal and 10% by Intercultures. It is managed by Socfin Consultant Services (Socfinco), a subsidiary of Intercultures which manages all group operating companies.

Salala’s project is up to 2012 and is estimated at $25 million. The proposed IFC Investment is a $10 million A Loan for IFC’s own account and will be used to finance Salala’s rehabilitation and optimization program.

10.0 million (USD)

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

* These investment figures are indicative

The planting program will take place at Salala’s existing plantation. Improvements in infrastructure and operational efficiency will take place at both the plantation and the processing factory (located 12 km from the plantation). Both facilities are located in the Margibi County, a rural area of Liberia and about three hours drive from Monrovia along the Monrovia to Ganta road.

- Rubber plantations are labor intensive. The planting program as well as improvements in infrastructure will create additional employment for the community;
- The project will improve operational efficiency at the plantation and processing plant;
- The Government of Liberia will benefit from increased tax revenues as a result of improvements in profitability;
- The project is expected to improve financial management of the Company and enable it to promptly pay third party suppliers (including smallholder farmers) for raw rubber supply. In addition, smallholders will benefit from training in good agricultural practices and inputs to improve yields and income.

- IFC’s support will encourage Salala to become a local industry leader with regard to environmental, safety and social standards.
- IFC’s long term financing to a project in post-conflict Liberia which is still going through an unsettled period would send a positive signal to the investment community. This would catalyze investment interest from the business community and other Development Financial Institutions.
- IFC will explore opportunities for advisory services with the company including the development of a smallholder program.

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS5: Land Acquisition and Involuntary Resettlement
- PS6: Biodiversity Conservation and Sustainable Natural Resource Management
- PS8: Cultural Heritage

In the context of Liberian history in which settler populations, the Americo-Liberians, are present, the E&S team considered whether there were grounds to consider the original populations to be indigenous peoples under IFC’s definitions and guidance. The original populations in the area of the project are part of the now dominant society and culture of Liberia. Thus, the IFC E&S team determined that PS 7, Indigenous Peoples, does not apply to this project.

The major environmental and social issues associated with this project are:

- Worker housing and sanitation;
- Grievance mechanism for host communities;
- Site drainage and wastewater treatment at the rubber processing factory;
- Integrated pest management in the plantation; and
- Protection of remaining older forest stands along major river courses within the plantation.

All of these issues are limited in their extent to the company property. They can all be addressed by known technology, practices or procedures. Therefore, this project should be considered as a category B.