PROJECT

Projects

Summary of Proposed Investment

Project Number

9180

Company Name

Alicorp S.A.A.

Date SPI Disclosed

Mar 22, 1999

Country

Peru

Industry

Agribusiness and Forestry

Status

Completed

Sector

Grain Processing (Milling, Starch, Flour, Malt)

Department

Regional Industry - MAS LAC

Environmental Category

B - Limited

Previous Events

Approved : Jun 30, 1999
Signed : Oct 4, 1999
Invested : Oct 18, 1999

Project Description

Summary Of Project Information (SPI)

Project Name:Peru: Alicorp S.A.

Region:Latin America and Caribbean
Sector:Food and Agribusiness
Project No:009180
Projected Board Date:April 30, 1999
Company Name:Alicorp S.A.
Technical Partner and/or Major Shareholders

Alicorp is controlled by the Romero group, Peru''s largest private sector group with additional important interests in the Peruvian banking sector. Additional shareholders include the Nicolini group, JP Morgan and Alicorp employees.

Project Cost Including proposed IFC investment

Project Cost: US$ 130 million, including some US$ 50 million in debt refinancings. IFC''s Proposed Investment: US$ 70 million, including a "B" loan from participating banks of up to US$ 30 million, A loan of US$ 20 million and equity of US$ 20 million.

Location of project and Description of site

At industrial sites owned and operated by Alicorp in Lima, Arequipa and Piura

Description of Company and Purpose of Project

Alicorp is Peru''s leading food company and the market leader in edible oils, wheat flour, pastas, laundry soaps, packaged rice and cookies and crackers.
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 health and safety issues which were of potential concern in this project include: compliance with relevant national and World Bank Group requirements for existing facilities, wastewater treatment, air emissions, solid waste management, management and storage of hazardous materials, occupational health and safety, corporate environmental management capacity.

Existing operations are in compliance with national and World Bank Group (WBG) requirements with the exception of waste water discharge from the two vegetable oil sites. These failings will be addressed during the project and will allow the company to be fully in compliance by the end of the project. As part of the project, the company will implement an Environmental Management System (EMS) based on World Bank Group requirements throughout the company.

Date SPI sent to InfoShop:March 22, 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