PROJECT

Projects

Summary of Proposed Investment

Project Number

9681

Company Name

PharmaCare Industries Company Limited

Date SPI Disclosed

May 25, 1999

Country

Ghana

Industry

Health, Education and Life Sciences

Status

Completed

Sector

Pharmaceuticals and Medicine

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : Jun 30, 1999
Signed : Mar 29, 2000
Invested : Jul 31, 2000

Project Description

SUMMARY OF PROJECT INFORMATION (SPI)


Project Name Ghana – Pharmacare

Region Sub-Saharan Africa

Sector Manufacturing

Project No. 009681

Projected Board Date June 25, 1999

Company Name Pharmacare Industries Limited

Major Shareholders
Messrs Ghopal Valecha, Ghanaian, and Mahesh Bhojwani, Indian are sponsors of the project and equally own Pharma Care.

Project Cost including proposed IFC investment
Total company capital expenditure is estimated at US$1.4 million. IFC has been approached to provide a loan of US$0.5 million.

Location of project and Description of site
The company is located in Accra, the capital of Ghana. The project will be sited on a 1.5 acre in the South Industrial Area of Accra..

Description of Company and Purpose of Project
Pharmacare is the second company in Accra, other than Lever Brothers Limited, set up to manufacture and distribute toothpaste for both domestic and export markets. The company started production in May 1997.

The project is an expansion to increase production of toothpaste from 40 tons/month to about 100 tons/month and produce about 1.5 million empty collapsible tubes/month. This will involve the acquisition of equipment, construction of a new warehouse and renovation of the existing factory.

Environmental Categories and Issues

This is a Category B project according to IFC’s environmental review procedure because a limited number of specific environmental impacts may result from this project. The following potential environmental, social, safety and health impacts of the project were analyzed:

· site selection and previous use;
· water and power supply;
· effluent disposal and solid waste management;
· fuel and chemical storage;
· general housekeeping and equipment safeguarding; and
· fire protection, workers health and life safety.

The information about how these potential impacts are addressed by the sponsor is summarized in the paragraph that follows.

The previously developed site is located in an industrial estate, adjacent to the South Ring Road. The site is surrounded by others industries. Water and electric power will be supplied by the existing local utility infrastructure (GWSC and ECG), although 350 KVa back-up power generation will be provided on-site. Sanitary sewage, factory effluents and office wastewater are treated on-site in two septic tanks with appropriately designed drainfield systems. Clean wastewater from other sources will be discharged to a storm drain connected to the drainage network of the industrial area. Domestic solid waste generated will be periodically collected by the municipal authorities and industrial refusals are collected by a private waste management. An intermediate waste disposal area is located on site. All raw materials in clearly labeled containers will be stored in a newly constructed warehouse adequately ventilated. No Ozone Depleting Substances (e.g., CFCs) will be used in refrigeration, air conditioning, or fire-fighting equipment on the premises. Adequate fire protection and fighting equipment and life safety measures are incorporated into the buildings. Employees will be trained in all environmental, health, and safety issues associated with the operation.

Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet World Bank Group environmental, health and safety policies and guidelines and Ghanaian environmental requirements. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.

Date SPI sent to PIC May 25, 1999

For additional Information contact: Corporate Relations Unit –
telephone (202) 473-7711
facsimile: (202) 676-0365.
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