Summary of Proposed Investment
Project Number
8588
Company Name
CORREO OFICIAL DE LA REPUBLICA ARGENTINA S.A.
Date SPI Disclosed
Nov 17, 1998
Country
Argentina
Industry
Infrastructure
Status
Completed
Sector
Other Support Activities for Transportation (Grain Terminals, Cargo Terminals, Airport Operations)
Department
Regional Industry INF LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Jan 7, 1999
Signed : May 26, 1999
Invested : Jul 12, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Argentina-Correo |
| Region | Latin America |
| Sector |
Projected Board DateDecember 17, 1998
Company NameCorreo Argentino S.A.
Technical Partner and/or Major Shareholders
Shareholders: Sideco Americana S.A., Itron S.A., Banco de Galicia y Buenos Aires S.A. and employees through an Employee Stock Ownership Plan
Technical Advisor: British Post Office
Project Cost Including proposed IFC investment
344 million US Dollars
Investment plan
Handling equipment 57.7 mn
IT & communications 68.5 mn
Refurbishment 60.2 mn
Employee training and severance 120 mn
Working capital 38 mn
Financial plan
Equity 86.4 mn
IFC equity (or quasi equity) 15 mn
IFC A loan 60 mn
IFC B loan 54 mn
IADB A loan 75 mn
IADB B loan 54 mn
Location of project and Description of site
All investments will benefit Correo Argentino''s existing offices and operations. In addition, Correo is constructing a new mail sorting plant in the industrial zone of Monte Grande near Buenos Aires'' international airport.
Description of Company and Purpose of Project
Correo Argentino S.A. is making investments in a new mail sorting plant for Buenos Aires, information systems throughout the company, upgrades to its mail handling centers and its post offices, and implementing a voluntary retirement program.
Correo Argentino S.A. holds a 30-year concession as provider of the official mail in Argentina. The investments are part of a program to make Correo Argentino a cost efficient service provider and to make the company competitive in a deregulated market. Economic activities in Argentina will be enhanced by the existence of a reliable nationwide mail service.
This is the first full privatization of a postal company in a deregulated postal market. IFC''s presence will provide comfort to other lenders in this transaction and the success of this concession will provide a model for other countries planning some form of privatization of mail services.
Environmental Category and Issues
This is an environmental and social review category B project. Issues included implementation of an environmental management program that encompasses facilities management and employee training and health and safety programs, and labor issues related to the voluntary retirement program. CASA has established a formal health, safety and environmental affairs department and have assigned full-time staff to implement environmental, training, and health and safety programs in each of the operating regions. An independent audit was used as the basis for a general restoration of premises and equipment. CASA is carrying out a voluntary retirement program as a significant component of the investment program.
The is from the InfoShop.
| Host country location of environmental documents | 1. Sarmiento 151, 5th floor library, Buenos Aires 2. Vicente Lopez 448, Monte Grande 3. Alem 14, Lomas de Zamora |
Date SPI sent to InfoShop November 17, 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
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