Wadi is a majority-owned by the members of Freiji and Nasrallah families (80.6%) while the 19.4% is owned by institutional shareholders namely Commercial International Investment Company (CIIC), Horus Food and Agribusiness Fund and EuroMena Fund.

The estimated total project cost is US$90 million. The proposed IFC investment is up to US$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

The company is headquartered in Giza of Egypt and has 13 subsidiaries in Egypt. The concerned subprojects will be located along the Cairo-Alexandria Dessert Road.

The proposed Project encompasses several autonomous components. The primary economic benefits will be in the economic value added by the overall investment program, as well as possible synergies with the Company existing operations. The various components of the program (soybean crushing, table eggs) do not appear to benefit from excessive levels of effective protection, so that financial and economic returns are likely to be aligned.
Other economic impacts will include: (i) additional taxes; (ii) additional employment; (iii) additional reach to MSMEs, and, (iv) additional reach to farmers, although most of the new projects will rely on imported agricultural raw materials of which Egypt has been a major importer.
Development outcome indicators will include (i) the project FRR and ERR, (ii) employment including female employment, (iii) taxes paid, and (iv) number of farmers and MSMEs reached.     

IFC involvement in Wadi provides additionality as follows: (i) Global Expertise: as Wadi continues its diversification strategy, it will use IFC as a sounding board to benefit from its global expertise across the subject sectors; (ii) Long-term Financing: even though there is sufficient US$ short term liquidity in the banking system in Egypt, medium and long-term credit is currently hard to obtain, especially for the agribusiness sector; and (iii) Corporate Governance (CG): IFC will continue to provide assistance on CG best practices.     

Key environmental, social and health and safety issues associated with Wadi’s proposed expansions and new developments include: social and environmental assessment; E&S management systems covering all operations; labor management and working conditions for permanent and seasonal employees; recycling, treatment, and discharge of effluent and air emissions; efficient management and monitoring of energy and water use; waste minimization, recycling and reuse; consultations with communities impacted by operations to be financed; and physical and economic resettlement and/or impacts on biodiversity and natural resources associated with land acquisition.

IFC''s review of this project included site inspections of Wadi operations (Wadi Glass, Wadi Food and Wadi Hatcheries) in Sadat City, in April-May 2009, as part of a routine supervision program. In addition, IFC staff reviewed detailed information on Wadi’s proposed new developments, including independently prepared Environmental Impact Assessments, and met with Wadi’s Environmental Manager to discuss these developments and ongoing environmental, health and safety (EHS) issues and performance. In addition, IFC reviewed information related to environmental and social (E&S) management and monitoring contained in the Annual Environmental and Social Monitoring Reports (AMRs) that Wadi has been submitted as a requirement of IFC’s earlier investments in the Company. A detailed description of IFC’s environmental and social due diligence of this investment can be found in the Environmental and Social Review Summary (ESRS) and associated Environmental and Social Action Plan (ESAP), which are also available on IFC’s website at http://www.ifc.org/projects.