PROJECT

Projects

Summary of Proposed Investment

Project Number

8195

Company Name

Timbuktu Trading and Transport

Date SPI Disclosed

May 15, 1997

Country

Mali

Industry

other

Status

Completed

Sector

Oil and Gas Transport or Pipeline

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : Jun 29, 1997
Signed : Nov 10, 1997
Invested : Dec 2, 1999

Project Description

2



SUMMARY OF PROJECT INFORMATION (SPI)


Project Name Mali - 3T

Region Sub-Saharan Africa

Sector Road Transportation

Project No 008195

Projected
Board Date: June 27, 1997

Company Name: Timbuktu Trading & Transport SARL (3T)

Ownership: 3T was created in 1996 by Mr. Tidiani Tall, a 26-year-old Malian businessman, to transport petroleum products from Cote d’Ivoire to Mali. Mr. Tall is currently the sole shareholder of 3T. For the expansion, Mr. Tall will open the company to three friends but he will remain the major shareholder with a 65% stake.

Project Cost Including Proposed IFC Investment: Total project cost of is estimated at US$0.5 million. IFC would provide a local currency guarantee of US$0.2 million equivalent which will enable 3T to borrow about CFAF 110 million. IFC’s investment represents 40% of total project cost.

Location of the Project and Description of the Site: The project would be located in Bamako, on a 6,000 square meter plot of rented land, removed from residential areas. Access to the project site will be by asphalt road. The land will be fenced and construction will comprise a small office building including sanitary facilities, a 127 square meter open shed for truck maintenance, and a truck storage area (a large open shed). Electricity and water are available on the site.

Description of Company and Purpose of Project: 3T is a transportation company set up in 1996 by Mr. Tidiani Tall to play a role in the local road transportation business, a sector which is key to the Malian economy but characterized by a lack of professionalism. The project involves the acquisition of 8 used tanker-trucks (7 tankers of 40,000 liters each and 1 tanker of 30,000) to transport petroleum products from Cote d’Ivoire to Mali. KLEYN TRUCKS nv. in Brussels will supply the 5-year-old Mercedes trailer trucks while the 30,000-40,000 liter tankers will be supplied by LOHEAC, a Rouen (France) based transport company. 3T’s major customers would be the subsidiaries of well known multinationals such as Elf, Mobil, Shell and Total.

Development Effects: The project will have considerable development impact by helping a young Malian entrepreneur improve the quality of the road transportation sector which is key to the local economy. Any deficiency in the sector would have a negative impact on the country’s economy given its landlocked location. The future success of Mr. Tall in the transportation business should have a positive demonstration effect and attract other serious players in this key sector.

IFC''s Role: The IFC investment would help raise the level of quality and service in the Malian transportation sector. In addition, IFC’s involvement will help secure local currency financing on terms and tenor difficult to find locally without an external guarantee. Banque de Développement du Mali would extend the local currency loan.

Environmental Issues: This is an environmental review category B project; principal issues involve: oil/fuel storage and spill prevention, disposal and recycling of used fluids and oils, vehicle emissions and safety, and employee training and fire protection. The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The sponsor will not storage any petroleum products on site, and the tankers will be certified by French standards for spill prevention. The sponsor will perform the change of oil and fluids at a local gas station. The used oil and fluids will be collected and sold to construction companies, vehicles and machinery owners and some factories. The sponsor will follow European standards for the transportation of hazardous products. The tankers will carry at all times fire fighting equipment as well as first aids supplies. IFC will monitor compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by 3T’s and by conducting periodic supervision. The Environmental Review Summary is expected to be available on May 20, 1997 at the Public Information Center.

Date SPI Sent to PIC: May 15, 1997

For additional information contact: Corporate Relations Unit

Telephone: (202) 473 7711
Fax: (202) 974 4384



J:\MLS08195.DOC
May 15, 1997 5:59 PM
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