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| El Gebaly |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25724 |
| Company name | El Gebaly Group |
| Country | Egypt |
| Sector | Agriculture and Forestry |
| Environmental category | B |
| Department | Agribusiness |
| Status | Pending Approval |
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| Date SPI disclosed | May 27, 2008 |
| Projected board date | June 26, 2008 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Gebalex Holding Company (El-Gebaly or Gebalex or the company), a leading citrus exporter in Egypt, is embarking on a project to develop 7,000 acres of plantations in Wadi El Natroun and Ras Sedr to plant citrus and other fruits and vegetables, build additional cold storage facilities, establish a new state-of-the-art citrus packhouse, construct a secondhand corrugated box packaging plant and establish a vegetable packhouse. |
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| Project sponsor and major shareholders of project company |
| The project is sponsored by El Gebaly family which owns the majority shareholding of the Company. El-Gebaly Fruit, the key subsidiary of Gebalex and the only operational company until June 2006, was established in 1997. |
| Total project cost and amount and nature of IFC's investment |
| The estimated total project cost is $67 million. IFC investment consists of a $20 million A Loan and a $10 million convertible C Loan for IFC's own account. |
| Location of project and description of site |
The company is headquartered in Cairo and has four subsidiaries in Egypt:
- El Gebaly Fruit Company;
- Gebalex for Reclamation and Agricultural and Animal Production Company;
- Hygienic Canned Food for Food Industries, and
- Pro Pack for Paper Carton Industries.
The concerned subprojects will be located in New Salheya City, Wadi El Natroun and Ras Sedr. |
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| Anticipated development impact of the project |
The proposed project will support the expansion of a leading company and is expected to achieve the following developmental impact:
- Generate export revenues;
- Reinforce El-Gebaly’s position as one of Egypt’s leading citrus exporters;
- Create new employment opportunities; and
- Help El-Gebaly spread new technology and R&D to its suppliers. |
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| IFC's expected development contribution |
- Provide long-term financing to primary agriculture companies not easily available in the local market;
- Improve corporate governance practices as well as management of social and environmental issues;
- Provide positive branding to a growing export-oriented company. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC's Environmental and Social Review procedure because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
Applicable Performance Standards (PS) are:
- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement;
- PS4: Community Health and Safety and Security; and
- PS5: Land Acquisition and Involuntary Resettlement. |
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| For inquiries about the project, contact: |
Mr. Amr Fouad
E-mail: amr.fouad@elgebaly.net
Telephone: +2 02 2452 9997 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Environmental Review Summary and Environmental Action Plan for the investment are available at the following location:
2 El Hegaz Street,
Heliopolis,
Cairo, Egypt |
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