The project sponsor is Nicaraguan Palm Oil Investments, Inc., a BVI company.

The total project cost is estimated at $52 million. The proposed IFC investment is up to a $25 million A loan for IFC’s own account.

25.0 million (USD)

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

* These investment figures are indicative

Cukra is located near the municipality of Kukra Hill, in Nicaragua’s rural and sparsely populated Atlantic Coast.

The development impact of the project includes:

- employment generation;
- support to community infrastructure, education and health projects;
- physical infrastructure;
- support to SMEs selling food and other services to Cukra; and
- benefits to local palm oil smallholders providing fresh fruit bunches to Cukra.

IFC’s expected development contribution includes:

- providing long-term financing and
- expertise in implementing IFC’s Performance Standards.

This is a Category B project under IFC’s Policy on Social and Environmental Sustainability 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, design criteria, local regulations and industry certification schemes. Oil palm plantation development is occurring on existing, cleared agricultural land, and there is no destruction of or impact on critical habitat involved. Land acquisition is on a willing buyer-willing seller basis, and there is no involuntary displacement of any people. There are no indigenous peoples’ reserves in the area. The company is working to actively upgrade its environmental protection capabilities, and will ensure that its operations meet international standards for the sector. As a result, the Category B designation is appropriate.

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment may 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
- PS7: Indigenous Peoples
- PS8 : Cultural Property

The appraisal assessed the project against the above Performance Standards. All lands were purchased from legal owners, either individuals or companies, on a willing buyer/willing seller basis, so PS 5 Land Acquisition and Involuntary Resettlement has not been applicable.