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Summary of Project Information (SPI) |
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| Project number | 9968 |
| Project name | Wood Standard - |
| Country | Bosnia and Herzegovina |
| Sector | Industrial & Consumer Products |
| Department | Global Manufacturing & Services |
| Company name | Wood Standard |
| Environmental category | B |
| Date disclosed | December 20, 1999 |
| Status | Completed |
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Summary Of Project Information (SPI)
| Project Name | Bosnia and Herzegovina - Wood Standard |
RegionEurope
Sector
Project No009968
Projected Board DateJanuary 19, 2000
Company NameStandard d.d.
Technical Partner and/or Major Shareholders
Standard was established in 1965 in Sarajevo, Bosnia and Herzegovina. The company is 54% state-owned.
Project Cost Including proposed IFC investment
IFC and the company's agent bank Market Banka received a proposal for a project cost of DM3.5 million (US$1.94 million equivalent). It is proposed that IFC provides a senior loan of up to 90%, or DM 3.15 million, of the total project cost, while the local agent bank Banjalucka Banka participates with remaining 10%, or DM 0.35 million, of the funds. Additionally, IFC may invest up to DM 1.0 million in the equity of the company to facilitate the company's privatization.
Location of project and Description of site
The company is located within the industrial sector of the city of Sarajevo, adjacent to the main highway and railway. The project does not call for any changes or expansion of the location, but only for improvements to the existing facilities and machinery.
Description of Company and Purpose of Project
The company produces upholstered furniture, veneered and case goods furniture, and designs and décors for commercial premises. This project will involve the refurbishment and upgrading of the furniture production lines. The purpose of the project is to provide the funds for critical process improvements and working capital to proceed with the refurbishment and revitalization of the recipient’s activities. The investment will promote financial recovery of the wood-processing sector in which Bosnia, due to its abundant beech forests, has traditionally had a comparative advantage. It is expected that the project will result in stabilized income and employment and enable the company to respond to market requirements. Provision of technical assistance and support in the privatization process is an important part of this project, and will help the company to pursue a path of sustainable long-term growth.
Environmental Category and Issues
This is a category B project according to IFC’s environmental and social review procedure. The key environmental, health and safety issues reviewed during project appraisal were: wood supply source and management; chemical usage, storage and handling; air emissions and workplace air quality; water supply and effluent; solid and hazardous waste management; emergency response and fire protection; and employee health and safety, and training. As part of this project, boiler operation will be enhanced, if warranted by analyses; ventilation for finishing operations will be improved; and fire protection systems will be upgraded. Based on its review of available information regarding potential environmental and social impacts and proposed mitigation measures, IFC concludes that this proposed project will meet the World Bank Group’s applicable environmental, health and safety policies and guidelines and the applicable requirements of the Federation of Bosnia-Herzegovina.
The is from the InfoShop.
| Host country location of environmental documents | The ERS is posted on the bulletin board in Standard’s administrative offices in Sarajevo. |
Date SPI sent to InfoShop December 20, 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
L:\SPI\SP9968.DOC
December 16, 1999 5:27 PM |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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