Project Description
Summary of Project Information
Project Name Angola-Flecol LdaRegion Sub-aharan AfricaSector Food and AgribusinessProject No 008538Projected Board January 9, 1998DateCompany Name Flecol LdaTechnical Partner and/or Major Shareholders The shareholders are Messrs. Jari Peltokangas (Finnish), Carl Gustav Ruda (Finnish)and Flecol Lda, an Angolan detergent manufacturer. Mr. Peltokangas is an experienced international banker and marketing practitioner who is currently Managing Director of his own investment company. He has previously held senior positions with Citibank, Karsallis International Bank and Amernet Holdings. Mr. Ruda is the Managing Director of Vaasan Saippua Finland the proposed equipment suppliers and technical partners.Project Cost Including Proposed IFC Investment The project is estimated to cost US$1.9 million and IFC has been requested to provide a loan of US$564,000. Location of Project and Description of Site The project will be located in Viana Industrial Site in Luanda, Angola.Description of Company and Purpose of Project Flecol Lda (Flecol, the Company) is a small Angola detergent manufacturing company. The company intends to expand into the production of a range of bath and laundry soaps and small quantities of candles. The company has invited Messrs. Ruda and Peltokangas to take shareholding in the company and invest some money to finance the proposed soap project. The plant’s products will be sold on the domestic market. The equipment will be purchased from Vaasan Saippua Oy Finland. IFC''s investment will contribute to the creation of 35 jobs and help bring to Luanda some economic activity at a time when Angola is reconstructing after the protracted civil war. The investment will also help develop the local soap industry which currently has only one manufacturer, and introduce some of the latest soap making technology to Angola. Environmental Category and IssuesThis is a category B project according to AEF''s environmental review procedure. Environmental issues associated with this project include site setting and conditions, liquid and solid wastes disposal; handling and storage of chemicals materials and oil; recycling of solvents and oils. Occupational health and safety issues include employee exposure to dust, heat, noise and hazardous materials, and fire prevention and emergency evacuation. The sponsor has provided IFC with detailed information regarding its environmental practices. The facility will be located in an industrial park 14 kms from Luanda. All production equipment will be imported from Finland. The production process is a closed system, with the result that waste generation is minimal. No solvents are used in either production or cleaning of machinery. Machines are washed down with small quantities of soap. All flammable materials (perfumes and organic oils) will be stored in a separate locked container located in the facility warehouse. Damaged product can be reprocessed. All sewage and waste water from machinery washdown will be disposed in a series of septic tanks and soakaways on the property. Employees will be provided with appropriate personal protective clothing and trained in the safe operation and maintenance of equipment as well as fire prevention and response methods. The facility will be equipped with fire extinguishers in accordance with local regulations. IFC will monitor ongoing 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 the sponsor and by conducting periodic supervision.The Environmental Review Summary is available from the Public Information Center.Date SPI sent to PIC December 8, 1997“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental 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).