Project Name: MOZAMBIQUE-RODOVIARIA DA BEIRA, LIMITADA

Region: Sub-Saharan Africa

Sector: Transport

Project No: 008901

Projected Board Date: April 28, 1998

Company Name: Rodoviaria da Beira, Lda (Robeira)

Technical Partner and/or Major Shareholders: ROBEIRA is owned by three Mozambicans:(i) Mr. F. Salgado, who holds 34% shares of the Company; (ii) Mr. J. Costa, technical engineer with 33% of the Company; and (iii) Ridler Investments Corporation that is represented by Dr. A. Salgado, a prominent lawyer. Mr. F. Salgado will manage the project on a day-to-day basis. Mr. Costa will be responsible for the maintenance of the fleet. Dr. Salgado will oversee the legal aspects of the business.

Project Cost Including Proposed IFC Investment: The project is estimated to cost US$511,000 and IFC has been requested to provide a loan of US$256,000.

Location of Project and Description of Site: The project will serve farmers, traders and the general population that need to travel to and from Beira.

Description of Company and Purpose of Project: The project will (a) expand the Company’s bus fleet from three to eleven buses; (b) acquire a pick-up truck; and (c) train three in-house mechanics. The project will create new jobs and help improve the transportation sector.

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, health and safety issues that are of potential concern in this project include disposal of liquid and solid wastes including sewage; recycling and/or proper disposal of used motor oils and grease; spill prevention and secondary containment for above-ground fuel storage tanks; discharges from underground fuel storage tanks; vehicle emissions; fire protection and emergency response preparedness; employee health and safety and training; maintenance of vehicle fleet; and general housekeeping. Robeira’s solid and liquid waste is collected by the Beira municipal authorities and sewage is discharged to the municipal sewerage system.  ROBEIRA has a long term contract with Mobil to provide fuel and routine servicing, including oil filter changes.  As a result, very little waste oil generated at ROBEIRA’s premises in the normal course of operations.  ROBEIRA has its own workshop for handling repairs and employs a team of mechanics trained by TATA, the Indian manufacturer of its buses, who oversee maintenance of the buses.  The three buses were purchased new in July 1997 and emit very little in the way of visible emissions.  Municipal regulations require that all buses be equipped with both a fire extinguisher and a first aid kit.  All of ROBEIRA’s drivers and other members of its bus crews have been trained in the proper use of these extinguishers. It is ROBEIRA’s policy to conduct an internal inspection of each of its vehicles every 3,000 kms.  TATA maintenance rules require that buses receive a major servicing every 5,000 kms, for the first 50,000 kms, after which a major service is required every 10,000 kms.  These schedules are strictly adhered to.  The Environmental Review Summary (ERS) is expected to be available at the Public Information Center on May 2, 1998.

Date SPI sent to PIC: April 28, 1998

For additional information contact: Corporate Relations Unit - telephone: (202) 473-7711 - facsimile: (202) 974-4384.

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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).