Summary of Proposed Investment
Project Number
7852
Company Name
Nghe An Tate & Lyle Ltd.
Date SPI Disclosed
Apr 4, 1997
Country
Viet Nam
Industry
Agribusiness and Forestry
Status
Completed
Sector
Sugar and Confectionery
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Jun 17, 1997
Signed : Jan 27, 2000
Invested : Mar 9, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Vietnam-Nghe An Tate & Lyle |
| Region | Asia |
| Sector |
Projected Board DateJuly 1, 1997
Company NameNghe An Tate & Lyle Sugar Company Ltd.
Technical Partner and/or Major Shareholders
Tate & Lyle PLC, the world’s largest sweetener manufacturer; (42%)
Mitr Phol, one of Thailand’s largest sugar producers; (17.5%)
The Vietnam Fund Ltd. (10.5%);
Nghe An Sugar Co. (30%)
Project Cost Including proposed IFC investment
US$85 million of which IFC would provide up to US$20 million in the form of an A Loan and up to US$28 million as a B Loan.
Location of project and Description of site
Phu Quy District, Nghe An Province
Construction and operation of greenfield sugar mill in northern Vietnam for the production of high quality mill white and refined sugars. The mill will be constructed on a 60 ha site in a predominantly agricultural region of the country. Part of the site was formerly occupied by a small tea plantation.
Description of Company and Purpose of Project
The Company has been established as a foreign joint venture under Vietnam’s foreign investment law. The Sponsors intend to capitalize on the rapid growth in domestic demand for sugar forecast for the country. Developmental benefits include direct employment of an estimated 700 mill workers; improvements in the domestic sugar industry such as greater processing efficiency (higher sucrose recovery) and improved quality; increased incomes for an estimated 22,000 smallholder farmers and their families who will supply the mill’s raw material under long-term cane supply contracts; and greater agricultural efficiency through the Sponsors’ planned introduction of higher yielding cane varieties, modern planting techniques and improved harvesting methods. Indirect benefits resulting from demand by the Company will include the development of a cane hauling industry and strengthening of rural credit facilities.
Environmental Category and Issues
The project has been rated environmental category B under IFC''s environmental review procedure. Environmental and occupational health and safety issues associated with this project include site location, emissions, liquid effluent treatment, solid waste management and recycling and employee training, health and safety. The project is being developed in an agricultural area with a small village nearby. Air emissions from the mill will consist of flue gases from the steam boilers and will be kept within local requirements and World Bank guidelines through treatment with a wet scrubber. Wastewater from the mill will be collected and treated in a full scale biological wastewater treatment plant established on-site and will comply with local requirements and World Bank effluent guidelines. Solid wastes generated by the plant will include bagasse, cane filter mud, boiler ash and scrubber sludge. Bagasse will be recycled as fuel for the mill''s boilers. The other solid wastes will be returned to the farmers to spread on their sugarcane fields as a fertilizer supplement. NATL will implement a workplace health and safety policy commensurate with Tate Lyle policies worldwide. IFC will ensure ongoing compliance with World Bank guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by NATL and by conducting periodic site visits.
The is from the Public Information Center.
| Date SPI sent to PIC | April 4, 1997 |
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
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