The project sponsor are the Company and its ultimate shareholders: (i) the Seaboard Corporation (25%), an international company listed and based in the US; (ii) the Continental Grain Company (25%), a private international company based in the US; (iii) the Correa family (36.6%), a local Ecuadorian family; (iv) the Lopez family (10.6%), a local Ecuadorian family; and (v) Fondo Pais Ecuador (2.8%), an investment fund in Ecuador.

The total project cost is estimated at $29 m. The proposed IFC investment is a $8 million A loan for IFC’s own account.

8.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	8.0
Equity

* These investment figures are indicative

The Project will be implemented in the Company’s existing plants in Manta, Quito and Cayambe.

Expected developmental impacts include: (i) support a key staple food producer in Ecuador, help to secure food supply; (ii) help with the feasibility study and implementation of a program aimed at increasing fortified food supply to poor children & women through the GAIN/IFC AS program; (iii) create new jobs by reviving a bankrupted flour & pasta company which will have a significant impact on the development of a rural area of Ecuador.Expected developmental impacts include: (i) support a key staple food producer in Ecuador, help to secure food supply; (ii) help with the feasibility study and implementation of a program aimed at increasing fortified food supply to poor children & women through the GAIN/IFC AS program; (iii) create new jobs by reviving a bankrupted flour & pasta company which will have a significant impact on the development of a rural area of Ecuador.

IFC's expected addtionality include: (i) provide long-term financing not available in the local market; (ii) mobilize other long-term financing; (iii) provide technical advisory service on expanding fortified food program for poor children, pregnant & nursing women; and (iv) help improve environmental & social practice.IFC's expected addtionality include: (i) provide long-term financing not available in the local market; (ii) mobilize other long-term financing; (iii) provide technical advisory service on expanding fortified food program for poor children, pregnant & nursing women; and (iv) help improve environmental & social practice.

The B categorization is applicable as there are no elements of the project with diverse, unprecedented negative social or environmental impacts. Environmental and occupational health and safety issues are centrally managed from the Quito HQ with limited representation at production facilities as required. Human Resources policies and practices closely follow national law. There are no unions within the organization but these are not precluded from forming. Milling, and the type of food production carried out by the company, is relatively dry processes that avoid large scale issues associated with waste water management. Limited air emissions are associated with small boiler operations used to generate heat for production purposes and from generators that provide back-up power which can have noise issues associated with their operation. Occupational health and safety issues are a constant concern in milling; a new risk-based approach to safety management is currently being pursued. Related to this are the new acquisitions made by the company which are not yet at the standard of their existing operations and will need improvement. The company does not engage with the community in other than an ad hoc manner; no serious social/community issues were observed or discovered, however, during the appraisal. No issues involving the supply chain are to be expected with wheat being sourced from either the US or Canada.