Summary of Proposed Investment
Project Number
7676
Company Name
Agricultural Development Co. S.A.L.
Date SPI Disclosed
Apr 7, 1997
Country
Lebanon
Industry
Agribusiness and Forestry
Status
Completed
Sector
Animal Slaughtering and Processing
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Jun 30, 1997
Signed : Oct 16, 1997
Invested : Feb 20, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Lebanon-Agricultural Development (Adc) Company, S.A.R.L. |
| Region | Central Asia, Middle East and North Africa |
| Sector |
Projected Board DateMay 21, 1997
Company NameAgricultural Development Company, S.A.R.L.
Technical Partner and/or Major Shareholders
The project is sponsored by Wadi Holdings (the Holding, the Sponsor) of Egypt, a group of companies owned by the Freiji and Nasrallah families of Lebanon. Wadi Holdings specializes mainly in the poultry business, but is also involved in the production of olives and olive oil. Messrs. Freiji and Nasrallah, shareholders of Wadi Holdings with 75% and 25% of the shares respectively, are also the shareholders of ADC, in the same proportion.
Project Cost Including proposed IFC investment
The four-year investment program is estimated at US$20 million, of which, IFC is considering a US$6 million ‘A’ Loan.
Location of project and Description of site
ADC’s existing facilities, including the parent farms, the feed mill, and the hatchery, are all located in Zahle, the capital of the Bekaa Valley of Lebanon. All three sites are positioned in isolated zones, with at least 1 km separation between each other and from the nearest public road.
ADC has also identified and bought in the Bekaa similarly isolated land parcels to construct its additional facilities. These include eight broiler farms of 30,000 m2 each, and the processing plant which will be built on a 20,000 m2 site at one hour proximity of the broiler farms, to reduce bird-weight losses during transportation.
Description of Company and Purpose of Project
The project is to rehabilitate and expand the existing facilities of Agricultural Development Co. (ADC), which currently include three broiler parent farms, a modern hatchery and a feed plant, into an integrated broiler meat production facility. The project will be located in the Bekaa valley of Lebanon and will have the capacity to produce over 9,600 tpy of broiler meat. The US$20 million investment program, to be carried out over two years, includes (i) the full rehabilitation of ADC’s existing facilities, (ii) the construction and equipment of eight broiler farms, (iii) the setup of an administration and service center, (iv) the setup of a broiler meat processing plant, and (v) the setup of a distribution and sales center. The Project will promote the introduction of the integrated meat processing concept and help satisfy the increasing demand for broiler meat in Lebanon, lessening the country’s dependence on the imports of such products. The project will promote technology transfer by importing the latest meat processing technology and training Lebanese nationals in international quality management, operational, marketing and sales skills. With its modern facility and experienced management team, the Company is expected to be the low-cost producer in Lebanon and provide higher quality products at competitive prices. The project would also serve as a platform for a broader development impact, as contract farming could be introduced at a subsequent phase, thus providing significant and stable employment opportunities to small and medium sized farmers who would supplement the Company’s own production, within acceptable performance indicators and costs.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. Environmental, occupational, and health issues associated with this project include air emissions, solid waste management, liquid effluents, safe handling of food, and general employee training, health and safety. The following measures are considered by ADC to address these issues:
i) Air Emissions: As part of the project, gas cleaning/filtering systems will be installed and rendering units will be fitted with deodorizers to reduce smell.
ii) Solid Waste Management: Solid wastes from farming operations will be collected at the end of each farming cycle and sold to local farmers for use as fertilizer. Because of the extensive farming land in the Bekaa valley there is no risk from over-application of manure, and the system has a natural balance, in that, nutrients added are all taken up in crop growth. Solid waste from the processing plant will be treated at rendering facilities to produce animal feed.
iii) Liquid Effluents: All liquid effluents will be discharged to a treatment plant which will be constructed as an integral part of the processing plant. ADC will bring all its effluents in compliance with both local requirements and World Bank guidelines.
iv) Food Handling: ADC will provide protective gear and appropriate training to all its employees. In addition, employees who will work at the processing plant will be provided with continued training and supervision to ensure adequate food handling.
v) General Employee Health and Safety: Employee occupational health and safety issues will be addressed through training associated with job responsibilities, general training in fire protection and safety, and periodic safety seminars. Workers will receive safety training and will be supplied with protective clothing and headgear. There will be a first aid center on premises. Also, all ADC’s facilities will be equipped with a canteen and kitchen areas available to staff.
vi) IFC will ensure ongoing compliance with World Bank guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the Company and by conducting periodic supervision.
The is from the Public Information Center.
| Date SPI sent to PIC | April 9, 1997 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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