Kongo Coffee Limited, a privately held company incorporated under the laws of Papua New Guinea, established in 1990. The company is owned by Jerry and Lilly Kapka.

The project involves an annual revolving working capital facility of PNG Kina 10.0 million (US$4.73 million equivalent) and a long term loan of PNG Kina 6.0 million (US$2.84 million equivalent) which will be funded by a local bank. IFC will provide an unfunded partial credit guarantee which will gradually decrease over time.

3.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	3.0
Loan
Equity

* These investment figures are indicative

The investment will be located at Portion 1004C, Milinch Goroka, Fourmil Karimui, Wawi Coffee Mill, Okuk Highway, Chuave, Simbu Province, Papua New Guinea

1. Income generation for small holder coffee growers:
Expanded processing capacity will generate increased demand and therefore income for growers. Growers will have access to a local, price competitive coffee buyer who has capacity to demonstrate a consistent buying pattern, thereby promoting security of income.
2. Job creation and upskilling: Additional employees will be required as processing volumes increase, many of which are roles undertaken by women. New machinery and technology will provide the opportunity for the local labour force to develop of new skills.
3. Small holder sustainability: The investment is expected to impact up to 500 coffee growers. This may assist in encouraging younger people to continue participating in local businesses, thereby contributing to industry sustainability.
4. Rural development: approximately 100, 000 people in the Chimbu region are heavily reliant on the coffee industry. Growth of KCL''s business will create additional downstream business opportunities for MSMEs including buyers and other related businesses.
5. Improved financial management and corporate governance: IFC''s involvement will provide an opportunity to improve internal systems and broaden management capacity
6. Skills training for growers: opportunity for IFC technical assistance such as enabling business training and accreditation courses.

1. The sponsor will benefit in IFC''s expertise in assisting small family owned businesses transition into larger professionally managed operations ;
2. IFC team will apply the experience and lessons learned from other sector related investments to this transaction.
3. Improve credibility of the sponsor with commercial banks: Access to finance for rural businesses, particulalry in the agriculture sector, is a significant issue for emerging regional business. IFC support can assist in securing future funding requirements.
4. Mobilisation: IFC will support a local bank with credit enhancement to assist in enhancing its security and risk position. Without IFC''s participation the local bank may not invest in KCL.
5. Environment and Social standards: IFC has written a comprehensive Environmental Safety Action Plan (ESAP) and can assist the company in implementing environmental and social standards for the project.

The project has been categorized as category B according to IFC’s Environmental & Social review procedure. This proposed investment is expected to have limited number of environmental and social impacts which are expected to be site-specific, temporary, and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to generally recognized performance standards, procedures, World Bank Group (WBG) General EHS Guidelines, and design criteria as described in the following sections. This is therefore a Category B project according to IFC’s Environmental and Social Sustainability Policy.