Summary of Proposed Investment
Project Number
8568
Company Name
Nova Companies Belize Ltd
Date SPI Disclosed
Feb 18, 1998
Country
Belize
Industry
Agribusiness and Forestry
Status
Active
Sector
Animal Aquaculture
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : May 6, 1998
Signed : Jun 25, 1998
Invested : Aug 19, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Belize-NOVA |
| (Expansion project) |
| Region | Latin America & Caribbean |
Sector
Project No008568
Projected Board DateMarch 19, 1998
Company NameNova Companies (Belize) LTD.
Technical Partner and/or Major Shareholders
NOVA was founded in 1989 by Milton V. Peterson and William Wrench both businessmen/real estate developers in the Washington DC metropolitan area, to rehabilitate and expand the shrimp farm facility originally developed and subsequently abandoned by Maya Mariculture Company. NOVA’s shareholders are the Peterson Family (68.25%); Robert Phillips, the Managing Director of the Company (25.00%); William Wrench (3.75%); and James Hyde, Secretary and Treasurer of NOVA joining from Maya Mariculture (3.00%). The entire existing operation, including all land and existing improvements thereon is owned by NOVA. The capital the Company needed has largely been provided by Mr. Peterson through cash contributions.
Project Cost Including Proposed IFC Investment
Total Project Cost is estimated at US$17 million. IFC is considering up to US$6.0 million loan investment for IFC’s own account (“A” Loan).
Location of Project and Description of Site
The Project involves the expansion of an existing shrimp production operation situated on the mainland 12.5 miles north of Belize City, and construction of a hatchery to be located offshore on Ambergris Caye. The shrimp farm uses 1000 m buffer zone along the shoreline so that there is no encroachment on mangrove habitat. The area is characterized as wet savanna and is characteristic of the low-lying coastal region of the country. On Ambergris, the site is 13 miles north of the San Pedro town, adjacent to a natural cut in the barrier reef. There is a commercial grade pier adjacent to the property as well as a gravel airstrip 1.5 miles from the site.
Description of Company and Purpose of Project
NOVA is the largest shrimp farming operation in Belize with 225 ha of ponds on the 700 ha site. The Project is designated to improve NOVA’s response to the growing market demand for aquaculture products in United States and consists of (i) the shrimp farm expansion by establishing additional 515 ha of grow-out ponds and (ii) the construction of a hatchery with a capacity of approximately 100 million postlarvae (PL) per month. The additional farming hectares will not only allow the Company to increase its production but also to fully exploit the economies of scale at the Belize site and further improve its gross margin. the construction of the shrimp hatchery along with the existing marketing company (based in United States) would complete the vertical integration for the group thus increasing its competition capacity in the shrimp industry. The Project is expected to generate employment for about 85 people and provide export earnings of US$ 9 to 10 million per year. Successful implementation of this Project would lead to development of an alternative export industry does diversifying Belize’s economic base. IFC’s participation in the Project, by providing long term finance, will encourage other potential long term financiers to look into Belize industries and their related term finance needs.
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 main environmental concern with this Project involved the siting in close proximity to important coastline mangrove habitat. The project is located inland of the mangrove area and there will be no encroachment on this habitat. Waste management issues are all being properly handled to avoid any impacts and ensure that all emissions are well within World bank group guidelines. Significant adverse impacts on the environment and worker health and safety are not expected from this Project.
The is from the Public Information Center.
| Date SPI sent to InfoShop | February 18, 1998 |
“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) 473-7711
facsimile: (202) 974-4384
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
Related ESRS/ERS
