Summary of Proposed Investment
Project Number
8731
Company Name
MODERN AGRICULTURAL INVESTMENT COMPANY LLC
Date SPI Disclosed
Jun 2, 1998
Country
Jordan
Industry
Agribusiness and Forestry
Status
Completed
Sector
Storage (Including Agricultural Products)
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Aug 10, 1998
Signed : Nov 16, 1998
Invested : Feb 24, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Jordan-MAICO |
| Region | Central Asia, Middle-East and North Africa (CAMENA) |
| Sector |
Projected Board DateJuly 15, 1998
Company NameModern Agricultural Investment Company
Technical Partner and/or Major Shareholders
The shareholding includes a mix of private sector investors who have taken the lead in managing the project, as well as public sector entities who provide the political umbrella and technical support necessary for the project.
Private Jordanian Investors are led by Mr. Samir Kawar, a successful and highly respected businessman, with significant agribusiness experience. Other investors include the P.D.I. Company, which is owned jointly by I.C.C. of Jordan and the Koor Group of Israel, the Inter Arab Fund backed by OPIC, Jordan Investment Corporation and IFC.
Technical support is provided by Mashav - the Government of Israel’s Unit for International Cooperation. In the past year, Mashav helped finance the project’s agricultural-professional consultancies. Furthermore, Mashav financed the current planning phase (this document as well as soil tests and the physical planning).
Project Cost Including proposed IFC investment
The first phase of the project is budgeted to cost up to US$5 million, with IFC contributing up to US$1 million for a maximum of 20% of share capital.
Location of project and Description of site
Situated in the FIFA region, 40Km from the Dead Sea on land that is owned by the Jordan Valley Authority (JVA), the proposed project forms part of an agreed land use plan for the area. The site will initially occupy an area of approximately 35 hectares and if successful will be expanded to a total of around 200 ha. Irrigation water for the site will be drawn from JVA boreholes and piped to the site.
Description of Company and Purpose of Project
Building on an IFC-finance feasibility study and a successful Pilot project, the Sponsors have decided to establish a Jordanian-Israeli joint venture company, Modern Agricultural Investment Company, "MAICO" or the "Company", to be engaged in post-harvest, extension and production activities in the Jordan Valley. At full development, the Company would have its own "anchor" production sites which would operate as hubs for "satellite farmers", to be selected and associated to the Company through "contract farming".
The overall objective of the Company''s operations is to act as a market and technology beacon, working in complementarity with the Government of Jordan and IBRD''s actions, to help diversify and upgrade the range and combination of crops and irrigation methods, which would develop a modern export sector, thereby maximizing the economic return on irrigation water and ultimately rationalize its overall consumption.
The project has the following main developmental impacts: (i) foreign exchange generation; (ii) industry diversification; (iii) development of a brand name for Jordanian produce abroad; (iv) improvement of the farmers'' quality of life through income stability and enhancement; (v) creation of employment in the Company, the project area, and agricultural support services; (vi) modernization of farm system in Jordan through know-how transfer from Israel; (vii) enhancement of the prospects of regional integration; (viii) demonstration effect to other farms in Jordan and; (ix) economic spin-off to regional construction and irrigation companies.
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. Key environmental, social, occupational and safety issues that are of potential concern in this project include: (i) the suitability of the land for agricultural activities; (ii) increased use of agrochemicals; and (iii) worker health and safety issues.
The soil quality and water supply issues associated with this project were addressed during the project design and the JVA has indicated that it is able to provide sustainable supplies of water for predicted demand. The sponsor has indicated that measures will be taken to reduce water use through the application of high tech drip irrigation technologies and there will be no significant discharge of effluents. Solid waste will either be re-cycled (plastic greenhouse materials) or composted/fed to livestock (organic waste). Agrochemical applications will be minimized through the use of insect screens and nets in all greenhouses and the sponsor has indicated that none of the chemicals used will be on the World Bank''s list of banned substances. Regular monitoring of chemical residues will be undertaken to ensure compliance with World Bank Group and European Union guidelines. The sponsor is preparing operating and training manuals for all workers and farmers who will join the scheme. These manuals will address health and safety and environmental management principles and responsibility for compliance with operating procedures will be assigned to senior project staff.
The is from the InfoShop.
| Date SPI sent to InfoShop | June 2, 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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