Summary of Proposed Investment
Project Number
9808
Company Name
Frutera del Pacífico, S.A.
Date SPI Disclosed
Sep 21, 1999
Country
Guatemala
Industry
Agribusiness and Forestry
Status
Completed
Sector
Fruits and Vegetables
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Dec 17, 1999
Signed : Feb 18, 2000
Invested : Mar 31, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Guatemala - Frutera del Pacifico |
RegionCentral America
Sector
Project No009808
Projected Board DateOctober 21, 1999
Company NameFrutera del Pacifico
Technical Partner and/or Major Shareholders
Frutera is a 50-50 partnership between Negocios Agroindustriales S.A. and the Arriola Torrebiarte Group. The principal owner of Negocios Agroindustriales S.A. is the Bolaños family. The principal owners of the Arriola Torrebiarte Group are the Arriola and Torrebiarte families. Negocios Agroindustriales is a holding company established in the 60’s and dedicated to agroexport crops, with banana production accounting for 81 percent of total sales. It has total turnover of US$52 million; total assets of US$63 million; and a net worth of US$35 million.
The Arriola Torrebiarte Group was established in 1940 as a producer and exporter of coffee. The group has since then diversified into other crops (e.g. sugar, banana and rubber), manufacturing activities (shoe production for Central America) and real estate. The group has a total turnover of US$43 million; total assets of US$34 million and a net worth of US$26 million. All financial data relates to year 1998.
Project Cost Including proposed IFC investment
Total project cost is estimated at US$20 million. IFC has been requested to provide a US$7.0 million senior A loan.
Location of project and Description of site
The project is located on the Southern Coast of Guatemala in two farms located in Tiquizate and Nueva Concepcion respectively located 191 km and 131 km south from Guatemala City. Total land covers 1,500 ha.
Description of Company and Purpose of Project
The project consists of a US$20 million investment to be carried out by Frutera del Pacifico to develop 1,412 hectares of banana on the Southern Coast of Guatemala. The company already has 457 hectares in production, representing an investment so far of US$5.2 million. The proposed project will be completed by 2001 with sales increasing from an expected US$9 million in 1999 to US$28 million in 2001.
The project is conceived to give the sponsors a hedge from natural disasters through geographical diversification as well as benefit of the better yields of the Pacific coast and availability of land. The existing plantations of the sponsors are located on the Atlantic coast of Guatemala, a zone which was severely affected last year by Hurricane Mitch.
Environmental Category and Issues
This is a category B project and the following potential environmental, social, health and safety impacts were analyzed: land acquisition and development; agricultural practices; water supply - sustainability and discharge; solid waste and hazardous materials management; environmental management systems, employment and labor commitments and worker health and safety.
Development of the farms will have no significant effect on natural habitats and has not required economic displacement. A range of agrochemicals will be used on the farms and the sponsor will develop detailed operational procedures governing the management and use of agrochemicals and appropriate training and equipment will be provided to all staff. Water supply and use for irrigation of the farms is sustainable and solid waste and hazardous materials management conforms with WBG requirements. The sponsor is developing an Environmental Management System, which will allow both farms to become ISO14000 certified within 2-3 years.
When fully developed, the farms will employ 1500 workers and will operate in compliance with Guatemalan labor requirements (including minimum age stipulations) and WBG requirements. Training in occupational health and safety and environmental management will be provided to all employees.
The is from the InfoShop.
| Host country location of environmental documents | Olga María Farm Escuela Hutzitzil Huitzitzil Km.182 Carretera a El Semillero Tiquizate, Escuintla Guatemala La Sierra Farm Escuela Mogollón San José Mogollón Km. 137 a Nueva Concepción Nueva Concepción, Escuintla Guatemala |
Date SPI sent to InfoShop September 21, 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
