PROJECT

Projects

Summary of Proposed Investment

Project Number

8450

Company Name

Sordale Pty Ltd

Date SPI Disclosed

Jul 25, 1997

Country

South Africa

Industry

Agribusiness and Forestry

Status

Completed

Sector

Fruits and Vegetables

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : May 20, 1998
Signed : Jun 25, 1998
Invested : Aug 7, 1998

Project Description

SUMMARY OF PROJECT INFORMATION (SPI)


Project Name South Africa-Hydrotec, Gauteng

Region Sub-Saharan Africa

Sector Agribusiness

Project Number 008450

Projected Board Date September 10, 1997

Projected ERS Date July 31, 1997

Company Name Shastean Investments (Proprietary) Limited

Technical Partner and/or Major Shareholders
The sponsor is Donmar (Proprietary) Limited, whose managing director is Mr Moses Marole. Donmar (Pty) Ltd and IFC will together hold 50% of the shares whilst Mr Greeff and Mr Bouwer will retain 25% each.

Project cost including proposed IFC investment
Project Cost: US$ 3,044,000 equivalent
IFC Investment: US$ 1,413,000 equivalent

Location of project and Description of Site
The project is located in Pretoria and comprises 50 hectares of land.

Description of Company and Purpose of Project
The project is the acquisition of a 50% stake in the common stock of Shastean Investments (Proprietary) Limited (“Hydrotec”) by Donmar (Proprietary) Limited (“Donmar”) for a consideration of R7.0 million (US$1.5 million equivalent). Hydrotec, which is located north of Pretoria in Sunsetview, is a private company which produces value-added products including salads and pillow packs for mainly Woolworths.

Project Development Effects
The project will result in the economic empowerment of PDGs through participation in an industry that has and still is dominated by South Africa’s privileged community. This joint venture relationship will result in a transfer of skills to PDGs and will serve as an entry into high value agriculture. The high potential for increased volumes of business will create desperately needed job opportunities for people from PDGs.

Environmental Categories and Issues
This is a Category B project according to IFC’s environmental review procedure. Environmental, health and safety issues include source of water and power supply, handling, application and disposal of chemicals. Mitigative measures are integrated pest management, provision of personal protective equipment and employee training, regular medical check-ups for employees handling chemicals, disposal of liquid and solid wastes, including sewage, general hygiene and housekeeping in packhouse, CFC-free cold storage and fire protection and safety.

Date SPI Sent to PIC: July 25, 1997

For additional information please contact Corporate Relations Unit
Tel: (202) 473-7711
Fax: (202) 974-4384



P:\PIC\ZAS08450.DOC
July 25, 1997 5:57 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