PROJECT

Projects

Summary of Proposed Investment

Project Number

7776

Company Name

Ceres Estates Limited

Date SPI Disclosed

Sep 5, 1996

Country

Kenya

Industry

Agribusiness and Forestry

Status

Completed

Sector

Other Food

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : Nov 8, 1996
Signed : Dec 13, 1996
Invested : Oct 9, 1997

Project Description

SUMMARY OF PROJECT INFORMATION


Country/Project Name Kenya-Ceres Estates Limited

Region Sub-Saharan Africa

Sector Agribusiness

Project No. 007776

Projected Approval Date October 6, 1996

Company Name Ceres Estates Limited

Technical Partners and/or Major Shareholders: The project’s major shareholders are: Mr. K.P.M. Dowson (43%), a Kenyan national with 30 years of experience in the coffee/tea industry, Mr. P. Ransley (15%), a Kenyan national who is a senior partner at the law firm of Archer & Wilcock, Lord Delamere (15%), a Kenyan national who is an experienced farmer and the owner of the Delamere estates, and Mr. S.W. Winton Beddoes (15%), with 30 years of experience in large scale farming in Britain. Lord Delamere will serve as the Technical Director.

Project Cost including proposed IFC investment

Project Cost: US$3.76 million equivalent
IFC Investment: US$0.91 million (loan)

Location of Project and Description of Site: The project’s estates are located in Subukia, 25 km north of Nakuru, on the Nakuru/Nyahururu tarmac road in Kenya’s Rift Valley.

Description of Company and Purpose of Project: Ceres Estates Ltd. (Ceres) is a limited liability company involved in the growing and processing of coffee and tea mainly for the export market. It consists of a 250 acre tea plantation, a 350 acre coffee plantation, a coffee factory, and a tea factory. The estates were purchased by the current owners from a cooperative group in 1993. At that time, the plantations were in very poor condition and a 3-year rehabilitation program was started. While a considerable amount of work has been done to improve plantation yields and quality, additional work is required to make the estates commercially viable.

The project aims to complete the rehabilitation program and to bring the estates’ product quality and yields up to their full potential. IFC’s medium term loan will be used to finance new equipment and inputs, pay off part of an existing expensive short term loan, and provide part of the additional working capital required to support an ongoing out-grower program.

The project is expected to enhance the country’s foreign exchange earning potential, employ an additional 173 people, and provide a sustainable market for small scale tea out-growers who depend on the project for their livelihood. The project also illustrates the application of modern farming methods in rural coffee/tea estate management to local farmers.

In addition to the provision of scarce medium term financing and to the mobilization of local bank financing, IFC is also assisting the sponsors in defining the project’s concept and financial structure and in preparing a satisfactory environmental protection plan.

Environmental Category and Issues: This is an environmental review category B project. Environmental and occupational health and safety issues include pesticides handling and application, integrated pest management, power supply, water supply, waste disposal, out-grower chemical supply provision of protective equipment and training, and pesticide container disposal. The sponsor has submitted information which adequately addresses the issues listed above. An ERS has been finalized and was released to the PIC on August 30, 1996.

Date SPI sent to PIC: September 5, 1996

For additional Information contact: Corporate Relations Unit - telephone (202) 473-7711 - facsimile: (202) 676-0365


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