Summary of Proposed Investment
Project Number
8877
Company Name
Casa Mantica S.A. and Inmuebles Diano Marina, S.A.
Date SPI Disclosed
Apr 27, 1998
Country
Nicaragua
Industry
Tourism, Retail and Property
Status
Completed
Sector
Retail (Including Supermarkets, Grocery Stores, etc.)
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Jun 30, 1998
Signed : Jul 30, 1998
Invested : Aug 12, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Nicaragua: La Colonia |
| Region | Latin American and Caribbean |
| Sector |
Projected Board DateJune 5, 1998
Company NameCasa Mántica S.A. and Inmuebles Diano Marina S.A.
Technical Partner and/or Major Shareholders
The Mántica family privately owns both Casa Mántica S.A. and Inmuebles Diano Marina S.A..
Project Cost Including proposed IFC investment
The total project cost is estimated at about US$9.9 million. IFC’s proposed investment is expected to be in the form of up to US$4 million in an A Loan and a Subordinated C loan of up to US$0.5 million.
Location of project and Description of site
The project will be located in Managua.
Description of Company and Purpose of Project
La Colonia is Nicaragua’s largest retail supermarket chain, with 5 stores located in Managua. La Colonia''s four-year Project will involve the following components:(i) opening 3 new La Colonia supermarkets in Managua; (ii) remodeling and modernizing three existing stores, (iii) introducing an integrated electronic point of sale system (EPOS), and (iv) upgrading management information systems. The Company expects to benefit from higher margins (as a result of improved efficiencies and economies of scale), to streamline and run more technologically-efficient operations, and improve its competitive position, while at the same time preempting local and foreign competitors wishing to enter the market. IFC’s financing provides La Colonia with long-term funding which would otherwise be limited and expensive through other sources for companies in Nicaragua. In addition, IFC could serve as a catalyst to encourage greater foreign investment in the Company. IFC’s participation would also improve the Company’s corporate governance through improved reporting and better management practices, while acting as an agent of change in its expansion plans. La Colonia''s Project is expected to have the following developmental impacts: (i) the Company’s expansion plans would assist in distributing to the Managuan population groups a wider variety of food and other basic necessity items (at lower or competitive prices) under cleaner and more hygienic conditions. The Project would introduce best practice and modern retailing methods, and bring about technological improvements in logistics and distribution systems; and (ii) the Project will create about 250 jobs, primarily for women, contributing to reducing the high level of unemployment and underemployment in the country. In addition, the Project would also provide uncommon employee-benefit packages and higher than average compensation rates. The expansion plans would also foster better academical standards and training, and create career opportunities for the Company’s employees and management, thereby improving the standards of living in the region in which it will operate.
Environmental Category and Issues
This is an environmental review category B project. Potential issues which were reviewed for this project included land use and site location, liquid effluents treatment and discharge, solid waste management, use of non-CFC refrigerants, fire protection, safety and emergency response and general worker health and safety. The sponsor will implement actions to address these issues and demonstrate that the Project will comply with applicable Nicaraguan requirements and World Bank guidelines. Liquid effluents are properly disposed. Solid residues will be either recycled or properly disposed according to local regulations. Non-CFC refrigerants will be used. The sponsor is reviewing the current safety and emergency response practices and will implement actions satisfactory to IFC. Employees will be trained in occupational health and industrial safety practices.
The is May 5, 1998 from the Public Information Center.
| Host country location of environmental documents | Nicaragua |
Date SPI sent to PIC April 27, 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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