PROJECT

Projects

Summary of Proposed Investment

Project Number

9997

Company Name

Ausmoz Farm Holdings, Lda.

Date SPI Disclosed

Apr 24, 2000

Country

Mozambique

Industry

Agribusiness and Forestry

Status

Completed

Sector

Diversified Edible Agricultural Crops Production

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : Jun 9, 2000
Signed : Sep 5, 2000
Invested : Dec 6, 2001

Project Description

Project NameMozambique – SEF-Ausmoz

RegionSub-Saharan Africa
SectorAgricultural Crops
Project No009997
Projected Board DateMay 24, 2000
Company NameAusmoz Farm Holdings, Lda
Technical Partner and/or Major Shareholders

The main sponsors of the project is Macpherson Consulting Group with 23% shares, a Harare based Australian firm that provides professional services for rural development. It has extensive experience with agricultural projects in Southern and East Africa where it has been involved in assignments financed by UNDP, IFAD, USAID, ADB and the World Bank. The other shareholders are:

- B&L Contractor from Zimbabwe with 14% shares;
- Mr. Pedro Americo, a Mozambican citizen with 15%; and
- three Australian citizens together with 48% of shares.

Project Cost Including proposed IFC investment

The total project cost is $1,865,000 and IFC proposes a loan investment of $746,000.

- Location of project and Description of site

The project will be located at Chitunga, in the central province of Manica, Mozambique, about 20 km from the Beira Road Corridor.

- Description of Company and Purpose of Project

Ausmoz is a Mozambican company registered in 1995, when it obtained a 50-year renewable lease on a area of 1,953 ha of agricultural land. About 200 ha have been developed up to now and the purpose of the project is to fully develop the remaining 1,753 ha for the cultivation of cotton, maize, wheat, sunflower, and soybean.
The project has the potential to act as a catalyst to develop food production in one of the poorest areas of Mozambique. The project will also have an impact in the balance of payments of the country by generating foreign currency revenue and substituting imports.

- Environmental Category and Issues:

This is a Category B project according to IFC''s environmental review procedure. Key issues related to irrigation system(s) include:

- source and volume of irrigation demand and other water requirements;
- impacts on riverine hydrology of damming or other water extraction activities if applicable;
- potential loss of grazing land and wildlife habitat from damming, if applicable;
- impact on fisheries and subsistence fishing if applicable;
- minimum flow maintenance and impacts on downstream users;
- increased waterborne diseases;
- restoration of land disturbed during rehabilitation and construction; and
- general worker safety during construction.

Key issues related to plantation management include potential social issues involving:

- land occupation, land tenure, land use and physical or economic displacement;
- source of power including fuel storage;
- selection, handling, application and disposal of agrochemicals;
- agrochemical container disposal; integrated pest management;
- provision of personal protective equipment and employee health and safety training;
- regular medical check-ups for employees handling agrochemicals;
- emissions from boilers and other sources;
- workplace hygiene and housekeeping;
- solid and liquid waste disposal; and
- fire protection and life safety.

IFC is reviewing details of Ausmoz''s environmental management activities and social programs, as well as the findings of the project Appraisal Report. Details of the proposed operating procedures and mitigation measures are provided in the Environmental Review Summary (ERS) for the project.

Host country location of environmental documents:

1. The project site at Chitunga.

2. The City Hall in Chimoio.

3. Provincial Agricultural Department in Chimoio.

Date SPI sent to InfoShop April 24, 2000

“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
Fax: (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