29005 - Ecom Coffee Central America

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Summary of Proposed Investment

Project Number

29005

Company Name

ECOM Agroindustrial Corp. Limited

Date SPI Disclosed

May 27, 2010

Country

Latin America and the Caribbean Region

Industry

Infrastructure

Projected Board Date

Jun 28, 2010

Status

Completed

Sector

Coffee, Cocoa, Tea

Department

Gbl Ind, Manufact, Agribus & Services

Environmental Category

B - Limited

Previous Events

Approved : Jun 28, 2010
Invested : Aug 20, 2010

Project Description

The coffee sector in Central America (and Nicaragua in particular) is dominated by small holders, and has been suffering from decreasing productivity over the past decade. The proceeds of the loans provided by IFC will be used to fund ECOM Agroindustrial Corp. Ltd’s (“ECOM” or the “Company”) coffee operations in Nicaragua, Honduras, Guatemala and Costa Rica, and are aimed at on-lending to coffee growers for seasonal expenses, harvest, productivity and certification expenditures, and plantation renovation to help the Borrower’s coffee suppliers in those countries access short term and medium term financing, improve their productivity and adopt best management practices.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	24.0
Equity

Development Impact

General improved access to finance and ability to implement capital expenditures at the farm level with multi-year payback periods, including investments required to obtain certification or to renovate the coffee plantation stock. Sustainability of Central America Coffee Production. Improved coffee farm productivity with higher yield, higher quality plants, improved traceability of coffee and E&S practices on the farms, improved farmers income and plantation sustainability in the long term. Demonstration effect of the replanting of better performing varieties for other farmers to plant and other financiers to support.

Long Term Financing. IFC’s investment will extend term financing for capital improvements and technical assistance requirements of coffee producers, which is currently not available under existing financing extended to ECOM; Support to Local Businesses. IFC will support ECOM’s subsidiaries’ initiatives to: (i) promote good business management practices through technical assistance, financing and out-grower schemes; and (ii) facilitate improvements with direct productive and environmental benefits for coffee producers; Technical Assistance: IFC and ECOM are partnering to develop a technical assistance (TA) program to enhance ECOM’s technical capacity to promote, develop and manage a portfolio of longer-term financing for farmers, and to provide training and advice to coffee growers to successfully implement plantation renovation and best farm management practices.

This is a category B project according to IFC’s Procedure for Environmental and Social Review 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.

ECOM will implement measures to address these impacts and to ensure that the project will, upon implementation of the specific agreed measures, comply with all environmental and social requirements (national laws and regulations and the IFC’s Performance Standards and relevant Environmental, Health and Safety Guidelines). Information about how these potential impacts will be addressed by ECOM is summarized in the Environmental and Social Review Summary (ESRS) and in the Environmental and Social Action Plan (ESAP) agreed with the client.

Contacts

For Inquiries About the Project, Contact

Mr. Andrew P. Halle Chairman, Managing Board 13760 Noel Road, Suite 500 Dallas, Texas 75240 USA

For Inquiries and Comments About IFC, Contact

General IFC Inquiries IFC Corporate Relations 2121 Pennsylvania Avenue, NW Washington DC 20433 Telephone: 202-473-3800 Fax: 202-974-4384E Mail: Webmaster

Local Access of Project Documentation

Information about this project will be available at: ECOM country offices: Costa Rica - 400 m Sur Escuela de Cocori, Agua Caliente, Cartago, Costa Rica - Tel 506.2552.5279, Fax 506.2552.8111. Guatemala - 2da. Avenida 10-45 Zona 9 Guatemala City, Guatemala 2305-01009 - Tel 502.2.361.6232, Fax 502.2.334.3679 Honduras - Km. 7 Boulevard del Sur, PO Box 1822, San Pedro Sula, Honduras - Tel 504.565.7846, Fax 504.565.8357 Nicaragua - Centro Ejecutivo San Marino #A - 101, Managua, Nicaragua -Tel 505.2278.1477, Fax 505.2270.4331 Switzerland - Pully - Avenue Guillemin 16, Case Postale 64, 1009 Pully, Switzerland - Tel +4121.721.7230, Fax +4121.711.1067 USA - Dallas - 13760 Noel Road, Suite 500, Dallas, TX 75240 - Tel 214.520.1717, Fax 214.520.1859 Public Locations: In Nicaragua: Alcaldia de Ocotal Departmento de Nueva Segovia Costado Norte del Parque Central (505) 2732 2282 Fax (505) 2732 2033 In Costa Rica:Alcaldia de San Ramon Costado Noroeste del Parque Alberto Manuel Brenes San Ramon, Provincia de Alajuela, Costa Rica (506) 24-45-51-11 ext 101. In Honduras: Municipalidad TrojesFrente al Parque CentralTrojes, El ParaisoHonduras C.A.+504-793-92-44+504-793-90-14 In Guatemala: Municipalidad de Barberena 4ta ave y 4ta calle zona 1 Tel, (502) 7887-1466/7 Barberena, Santa Rosa Municipalidad de Cuilapa Cuilapa, Santa Rosa Tel. (502) 7886-5860/98

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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