The project sponsors and ECOM’s major shareholders are the Esteve Family. The Esteve family is the majority owner (92%) with some family members in management. The balance of 8% is owned by non family management.

The total project cost is estimated at $110 million. The proposed IFC investment is a medium term loan of up to $55 million. The IFC Loan would be provided to ECOM Agroindustriales Ltd. to be used to fund ECOM’s operations in the targeted countries.

55.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	55.0
Equity

* These investment figures are indicative

The Facility will be used principally to finance Company coffee operations in Asia (Indonesia, Vietnam and Papua New Guinea), the cocoa operations in Indonesia and Papua New Guinea, and the coffee operations in Africa (Kenya, Tanzania and Uganda).

ECOM’s subsidiary company for coffee in Indonesia is PT IndoCafco and led the industry in traceable, certified coffee, now maintaining established programs as the rest of the industry in Indonesia is just beginning. PT IndoCafco currently has traceable certified coffee programs in Aceh, Toba, Lampung, and Bali.

ECOM’s subsidiary company for cocoa in Indonesia is PT Tanah Mas Celebes Indah. The company sources cocoa from Makassar, South Sulawesi, and Palu, Central Sulawesi.

Monpi Coffee Exports Ltd. (Papua New Guinea) is located in Goroka.

Atlantic Commodities Vietnam Ltd. (Vietnam), milling facility is located in Bao Loc, in the Lam Dong province.

ECOM’s subsidiary company in Uganda is Kawacom Uganda Ltd. Kawacom has organic and Utz Kapeh certified coffee projects in

- Bushenyi, South Western Uganda,
- Nebbi District, Paidha, North Western Uganda, and
- Kapchorwa, Eastern Uganda.

Mawenzi Coffee Exporters (Tanzania) has a head office in Dar es Salaam, and a support office in Moshi in northern Tanzania. Sangana Commodities (Kenya) Ltd. is based in Nairobi.

The project is expected to provide continued direct benefits to rural populations and a demonstration impact on sustainability. ECOM''s operations provide substantial benefits to rural areas of many developing countries given the company''s ability to

- enhance the efficiency and transparency of agribusiness logistics and
- provide knowledge transfer in the primary processing of products which set high standards needed to meet the requirements of international buyers, thereby providing best practices for local companies to emulate.

External benefits.

Sustainability and traceability of supply are key components of ECOM’s business strategy. ECOM’s operations provide direct benefits to small and medium sized farmers in developing countries that depend on commodity exports. These benefits include:

- financing of capital and infrastructure improvements to achieve efficiencies and lower production costs;
- technical assistance to improve agricultural yields and quality;
- crop financing and inventory management;
- providing knowledge transfer in primary processing to set high standards as needed to meet the requirements of international buyers;
- implementation of environmental and social standards and Best Management Practices to achieve international certification for value-added products;
- helping mainstream commodity brands to promote sourcing from sustainable coffee producers.

Sustainability.

As part of this investment, ECOM will be required to develop a corporate level Environment and Social Management System and start its implementation under an action plan agreed to by IFC.

Through this investment, IFC is extending its partnership with an existing client and supporting its growth and support to its suppliers as it invests into frontier countries. Financing of farmers in the coffee supply chain is not easily available in the six countries targeted by this project (Vietnam, Papua New Guinea, Indonesia, Kenya, Uganda, and Tanzania). IFC, by working with ECOM, would provide scarce funding in the coffee supply chain in those countries. In addition, IFC’s is designing with ECOM in the same countries in Asia and Africa a Technical Assistance program which would help promote sustainable practices in the coffee value chain and bring ultimately sustainable practices certifications to coffee farmers.

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 that may result have been or are being avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

While all Performance Standards (PS) 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

The findings of the review confirm the application of these Performance Standards and indicate that there are no impacts at this stage related to PS4: Community Health Safety and Security, PS5: Land Acquisition and Involuntary Resettlement, PS6: Biodiversity Conservation and Sustainable Natural Resources Management, PS7: Indigenous Peoples or PS8 - Cultural Heritage. In the event that these PS’s become applicable, ECOM will inform IFC for us to provide feedback and suggestions. Screening of these issues will be done as part of their environmental and social assessment.