PROJECT

Projects

Summary of Proposed Investment

Project Number

9084

Company Name

Pasteurizadora Rica SAS

Date SPI Disclosed

Oct 7, 1999

Country

Dominican Republic

Industry

Agribusiness and Forestry

Status

Completed

Sector

Dairy Products

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Nov 29, 1999
Signed : Dec 15, 1999
Invested : Nov 15, 2000

Project Description

Summary Of Project Information (SPI)

Project NameDominican Republic - Pasteurizadora Rica S.A.

RegionLatin America and Caribbean
Sector
Project No009084
Projected Board DateNovember 8, 1999
Company NamePsteurizadora Rica S.A. and its subsidiaries Pasteurizadora del Cibao, Consorcio Citiricos Dominicanos and Lecheria San Antonio

Technical Partner and/or Major Shareholders

Pasteurizadora Rica S.A. (Rica) is owned by two reputable Dominican Republic families: Brache and Caceras. 

Project Cost Including proposed IFC investment

The project cost is estimated at US$36.5 million of which IFC will provide a US$12 million senior A loan and a US$3 million subordinated C loan.

Location of project and Description of site

Pasteurizadora Rica, the dairy and juice processing facility, is located on a 5 hectare site in the Dominican Republic capital Santo Domingo. The Lecheria San Antonio dairy farm is located on a 500 hectare site in Barahona on the southeast coast of the Dominican Republic. Consorcio citrus plantations are located in Central Dominican republic about 60 km to the northwest of Santo Domingo.

Description of Company and Purpose of Project

Pasteurizadora Rica S.A. (Rica) is one of the Dominican Republic''s foremost agribusiness companies in the processing of dairy and fruit juice industries. The company, which owns and operates two milk processing plants in Santo Domingo and Santiago and a citrus juice extraction plant in Villa Altagracia, employs modern processing technology. Rica sells over 75 product items, which may be grouped into seven categories: pasteurized and UHT milk, pasteurized and UHT juice, butter, cheese and yoghurt.
The project has five components which will support Rica''s investment program (1999-2003): (i) expansion and de-bottlenecking of its milk and juice processing facilities; (ii) expansion of its distribution network; (iii) establishment of a modern dairy farm under a majority-owned joint venture with know-how from one of Florida''s largest dairy operations; (iv) expansion of its existing orange groves by developing 600 hectares of new orange tree plantations; and (v) refinancing US$5 million of expensive local debt.
Through its involvement in the project IFC will assist Rica to improve its production efficiency and competitiveness and enable it to provide high quality dairy and fruit juice products to the Dominican Republic consumers at affordable prices. IFC will provide long term finance in a market where such funds are scarce.

Environmental Category and Issues

This is a category B project and the following potential environmental, social, health and safety impacts of the project were analyzed: details of any land acquisition; air emissions; water use and waste water treatment; solid waste management; agrochemical use and Integrated Pest Management; hazardous materials use; relationship with dairy out-growers; and occupational health and safety.
Land to be developed at both the orange orchards and the Lecheria farm was formerly used for agriculture and development will not affect natural habitats. The use of these sites is via acquisition through private sale or long term lease, and there has been no economic displacement.
There are no significant air emissions from boilers at any of Rica''s sites. Refrigeration systems are either ammonia (Consorcio site) or CFC-based. The sponsor will develop an emergency plan for the Consorcio site and has confirmed that use and disposal of CFCs at other sites conforms with Dominican Republic standards and the requirements of the Montreal Protocol.
Water supplies for the project are sustainable and appropriate permits have been obtained. Waste water treatment is not adequate at the Santo Domingo site and the sponsor will install a new waste water treatment works during the project. Waste water discharge arrangements for Lecheria and Consorcio are acceptable.
Solid waste is either applied to fields as fertilizer (manure from Lecheria), fed to cattle (citrus waste and whey) or disposed of to landfill. Agrochemical use at both the Consorcio and Lecheria sites will conform with local and international norms, and Integrated Pest Management approaches are being used at Consorcio. Hazardous material use and management conforms to WBG requirements. Rica obtains milk from approximately 70 out-grower dairy farmers in the Santiago and Santo Domingo areas and provides extension support to all suppliers. The sponsor will provide more advice and guidance on waste water/solid waste and other environmental management issues as part of the project.
Standard occupational health and safety measures are in place and appropriate training will be undertaken. The company currently does not have an HACCP (Hazard Awareness and Critical Control Point) but will develop one over the course of the project.
     

The is from the InfoShop.

Host country location of environmental documents1. At the Mayor´s building in Barahona.
2. At the Mayor´s building in Villa Altagracia.
3. At the Door of Lecheria San Antonio.
4. At the Door of ConsorcioCitricos Dominicanos.
5. At Biblioteca Nacional Dominicana (Main Public Library).
Date SPI sent to InfoShop October 8, 1999

“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