Keith Kingston (the “Sponsor”) came to PNG from Australia some 40 years ago, first as a boiler-maker then an importer of work-wear and work-boots. In 1972 he established KK Kingston and the Company has since developed into a diversified conglomerate with a strong reputation within PNG. Keith Kingston is currently the 100% shareholder of the Company.

Total project cost is estimated to be Papua New Guinea Kina (“Kina”) 20 million and IFC proposes providing equity financing of up to Kina10 million.

3.92 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	3.92

* These investment figures are indicative

The Company has three sites in Lae and two sites in Port Moresby. The sites in Lae are used for the manufacturing of plastics products, chemical products, paper products, rotational moulded products, bottling of cooking oil, as well as providing warehouse and showroom spaces. The sites in Port Moresby are used for manufacturing of plastics products, as well as providing warehouse and showroom spaces.

Demonstration Effect
The new ownership structure including external shareholders will be a key step for the Company to access the public market in the future. In addition, the Project will support the formalization of the corporate governance practices of a family-owned private company. The positive impact that good corporate governance practices have on the Company’s performance will send a strong message to the market.

Import Substitution
As a leading manufacturer of tissue paper, cooking oil, household chemicals and plastic products, the Company is one of PNG’s main producers of products that would otherwise be imported. The Company’s continued growth will be an important contributor to import substitution.

Employment Creation
The Company currently employs about 550 people in its Lae and Port Moresby operations, 95% of whom are local PNG citizens. As the Company continues to expand it is expected to create additional employment opportunities.

Long-term Growth Capital
IFC will provide long-term growth capital, something which is not easily accessible within PNG, to support the growth of the Company. In addition, IFC is expected to play a key role in the formalization of corporate governance practices and provides guidance on environmental, social, health and safety matters.

Improved Corporate Governance practices
IFC is expected to play a key role in the formalization of corporate governance practices of the Company. IFC will engage and provide guidance in formulating and implementation of these practices and, as an equity investor, participate in the corporate governance structure of the Company going forward.

Improved Environmental & Social performances
IFC will assist the Company in continuing to improve its environmental, social, health and safety performance by providing strategic guidance captured in a time-bound Action Plan.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. The principal Environmental and Social risks identified for the project which will require additional mitigation measures by KK Kingston include implementation of a Environmental and Social Management System, review of human resources policies and procedures, occupational and community health and safety, emergency response and community engagement. KK Kingston has provided information on its current practices and policies that seek to address Environmental and Social risks and impacts to ensure that the proposed project complies with or, will upon implementation of measures agreed upon as part of IFC’s Investment documents, comply with host country laws and regulations and IFC''s Performance Standards. Going forward, the Company shall consider all relevant social and environmental risks and impacts, including the issues identified in PS1 through PS8 while assessing any new business opportunities.