Summary of Proposed Investment
Project Number
9528
Company Name
Sociedad Agricola Drokasa S.A.
Date SPI Disclosed
Apr 30, 1999
Country
Peru
Industry
Agribusiness and Forestry
Status
Completed
Sector
Fruits and Vegetables
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Oct 19, 1999
Signed : Dec 2, 1999
Invested : Jan 14, 2000
Project Description
Summary of Project Information (SPI)
| Project Name: | PERU-AGROKASA |
Region:Latin America and Caribbean
Sector:
Project No:009528
Projected Board Date:June 1, 1999
Company Name:Sociedad Agricola Drokasa S.A.
Technical Partner and/or Major Shareholders
Headquartered in Ica (300KM south of Lima), Agrokasa is a wholly owned subsidiary of Corporacion Drokasa, one of Peru’s leading producer/distributor of pharmaceutical, health, beauty products, liquor and miscellaneous foods. Drokasa was founded in 1996 with the acquisition of fundo Santa Rita in Ica (200 ha)initiating a successful 150 ha pilot project growing grapes and asparagus. Agrokasa uses state-of-the-art drip irrigation technology; packing is presently contracted out to third parties and water resources have been secured through purchase, conditioning and rehabilitation of its own wells.
Project Cost Including proposed IFC investment
The project cost is US$22 million. IFC is considering a US$6 million investment in the form of a loan.
Location of project and Description of site
Agrokasa'' expansion site and future packing facility are in the Department of Ica 300KM south of Lima.
Description of Company and Purpose of Project
The Project consists of developing a high value horticulture operation in Ica based on exports of asparagus and grapes to Europe and the United States. After a very successful pilot project, the company plans to expand the hectares under asparagus and grapes cultivation from 73 has. to 730 has. and from 65 has. to 360 has. respectively. The project also includes: i) the construction of an export packhouse; ii) completion of infrastructure work; iii) working capital for growing crops; iv) an integrated feeding center for cattle that will be fed from asparagus brushwood using their manure to fertilize the land; and v) debt restructuring.
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 and occupational health and safety issues that were of potential concern in the project include: land acquisition and prior land uses; sustainability of irrigation water supply; impacts on environmentally-sensitive areas; use of Integrated Pest Management and pesticide use;
impacts of air and wastewater emissions and solid wastes; general worker health and safety.
The company has acquired two farm sites near Ica. One of which (Santa Rita) was formerly owned by a cooperativa. Although it was not required as part of the purchase, the sponsor provided a compensation package to the former cooperative owners who unanimously transferred land possession. The process of consultation and compensation has been documented and details of the process are presented as a resettlement plan attached to the ERS.
Ground water rights are allocated by the Ministry of Agriculture’s department for natural resources (INRENA) who are also responsible for monitoring groundwater levels. The sponsor has a well-documented record of the methods by which water rights were obtained and this material forms part of a resettlement plan attached to the ERS.
Impacts on environmentally-sensitive areas: The Santa Rita farm is a long established farm and contains no sites of ecological importance. The La Catalina site comprises an area reclaimed from desert and did not contain areas of ecological significance. Neither site is near to any protected areas of ecological significance.
Use of Integrated Pest Management and pesticide use: The sponsor is developing an integrated pest management system that includes management, biological and chemical control systems.
Impacts of air and wastewater emissions and solid waste: The company does not generate power and there are no significant emissions to the atmosphere except for methyl bromide which will be used in compliance with US requirements and phased out in accordance with international requirements of the Montreal Protocol and replaced with an acceptable alternative fumigant.
Wastewater will come from washing facilities (potential significant contaminants will include chlorine) and septic waters. The sponsor is discussing options for the treatment of process wash waters and has confirmed that treatment will achieve WBG requirements. Septic waters will be discharged to on site septic tanks.
General worker health and safety: At the Santa Rita site, the company will employ approximately 180 full time staff rising to up to 600 during harvest. Additionally, Fundo La Catalina will employ from 390 permanent employees rising to 1,400 during the harvest season. The company has an occupational health and safety plan and provides appropriate training for all employees.
The is April 30, 1999 from the InfoShop.
| Date SPI sent to InfoShop: | April 30, 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
Related ESRS/ERS
