PROJECT

Projects

Summary of Proposed Investment

Project Number

8230

Company Name

Kerr Kande Farm Limited II

Date SPI Disclosed

Mar 20, 1997

Country

Gambia, The

Industry

Agribusiness and Forestry

Status

Completed

Sector

Poultry Farming

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : May 9, 1997
Signed : Oct 28, 1997
Invested : Jan 30, 2001

Project Description

Summary of Project Information (SPI)


Project Name The Gambia-Kerr Kande Farm Ltd II

Region Sub-Saharan Africa

Sector Food & Agribusiness

Project No. 008230

Projected Board Date: April 28, 1997

Company Name: Kerr Kande Farm Ltd

Technical Partner and/or Major Shareholders: Mr. Momodou Jagne is the major shareholder (95%) and his son owns the remaining 5%. The farm manager is a Ghanaian expatriate, Mr. Solomon Narty.

Project Cost Including Proposed IFC Investment: Total project cost is estimated at US$530,000 equivalent and IFC has been asked to provide a loan guarantee of US$220,000 equivalent representing 42% of the project cost.

Location of Project and Description of Site: The project is located by the NEMA KUNKU Village on a land leased from the Government approximately 20 kms away form BANJUL, the Capital City of the GAMBIA.

Description of Company and Purpose of Project: KERR KANDE FARM LTD intends to remain the egg production leader in the Gambia and now needs to expand/complete modernization of its hen house and integrate its production capacity to meet the growing demand for chicken products in general and eggs in particular.

Project Development Effects: The project will be the largest egg producer in the Gambia, and will make available competitive animal protein in the country and introduce modern technology and management practices in a relatively undeveloped industry. As industry leader, this will have example value to other indigenous entrepreneurs. Furthermore, the rehabilitation of a feedmill which will use local ingredients will lead to increased production of rice and maize in the Gambia.

IFC’s Role: IFC’s support to KERR KANDE FARM will provide critically needed term financing at a reasonable cost. The high local interest rate has seriously hampered the financing of investments in general in the Gambia.

Environmental Category and Issues: This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of the appraisal of technical and environmental information submitted by the project sponsor and completed by IFC’s Environment Department staff. Key environmental, health and safety issues that could be of potential concern are specifically power and water supply and use, solid and liquid waste disposal, effluent treatment (including sewage), CFC-free cold storage, land use and site conditions, plant hygiene and housekeeping, employee exposure to dust and heat, employee safety and training, and fire prevention. The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and Word Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the Environmental Review Summary. 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 sponsor, and by conducting periodic supervision visit.

The draft Environmental Review Summary was issued on March 3, 1997 and the final ERS is expected to be sent to the Public Information Center by March 21, 1997.

Date SPI sent to PIC: March 20, 1997

For additional information Contact: Corporate Relations Unit -
Tel: (202) 473-2711
Facsmile: (202) 676-0365



L:\WPCR\ROB\KKF2SPI.DOC
March 20, 1997 11:08 AM
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