The project sponsor is Mr. Madiou Simpara, one of Mali’s leading entrepreneurs that has been in business for over 30 years. Among other concerns, he is chairman and CEO of GRIMAS, one of the largest privately-owned Malian industrial groups with 6 companies and over 200 employees. After project completion, GRIMAS will comprise of: Nouvelles Brasseries Bamakoises (NBB) – production of soft drinks and mineral water since 2002; Hamaya Preformes SARL (HPML) – production of preforms and caps since 2004; Santigila-Gaz – production of carbon dioxide since 2003; Hamaya Preformes Senegal (HPSN) – production of preforms and caps since 2009; Nouvelles Brasseries Cote d’Ivoire (NBCI) – production of soft drinks to commence in 2010; and, Hamaya Preformes Cote d’Ivoire (HPCI) – production of preforms and caps since 2009. Mr. Simpara is the primary shareholder of GRIMAS with 89% of the shares, while other Malian business people own the remaining 11%.

The total project cost is estimated at EUR 35 million. The proposed IFC investment is an A Loan for IFC’s own account of up to EUR 14 million.

17.21 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	17.21
Equity

* These investment figures are indicative

There are four different project sites: The NBB, HPML and Santigila factories are located at the existing GRIMAS factory site just outside Bamako in Mali. The site is on a major regional road, Route de Koulikoro, adjacent to the small village of Nyabakoro Droit. HPSN is a greenfield site located on Route Nationale 1, a major regional road in an industrial part of Rufisque, a well-developed town about 40 km from Dakar in Senegal. NBCI is located at an existing partially-completed factory site in Bonoua, a well-developed town about 56 km from Abidjan in Cote d’Ivoire. The site is on a major regional road and is adjacent to a mineral water bottling plant. HPCI is located in an existing factory in Zone II, a well-developed industrial area in Abidjan, Cote d’Ivoire. All sites have good access to major transport routes.

- Industrialization and private sector development in Mali, Senegal and CI: The Project will support a local sponsor who is contributing to industrialization of the region. The success of the Project would create backward linkages with suppliers and forward linkages with local wholesalers/retailers (who sell GRIMAS' soft drinks) many of which are MSMEs. - Employment: The Project will create local employment, direct and indirect through the supply chain. - Import Substitution: Currently some of beverages/preforms/caps/gas consumed in the region are imported (especially in CI and in Senegal). The increase of local production with local brands would enable import replacement. - Government Revenues: The overall Project will contribute to public revenues through increased taxes paid by GRIMAS as well as those paid by suppliers and other downstream service providers (i.e. distributors, etc.).

- IFC will provide an 8-year loan which is currently not available in the local/regional market and expects to assist the company with operational, managerial, and environmental matters.

The anticipated key Environmental and Social risks in this soft drink production project include sponsor’s capacity to manage environmental, health, safety and social (EHSS) issues more specifically (i) labor and working conditions; (ii) occupational health and safety and employee training programs; (iii) implementation of a robust product hygiene and safety procedure; (iv) life and fire safety risks at each facility; (v) spill prevention plan; (vi) solid waste as well as effluent management; (vii) noise and dust from increase traffic that might affect the nearby community; (vii) past land acquisition procedure including potential economic and/or physical displacement; (ix) management of community expectation during consultation and disclosure. Furthermore, initiatives to optimize water and energy use will be explored with the client. Based on this early review, this investment has been provisionally categorized as B and as such will require a minimum of 30 days disclosure period.