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| Bioparques |
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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 | 26328 |
| Company name | Bioparques del Occidente, S.A. de C.V. |
| Country | Mexico |
| Sector | Agriculture and Forestry |
| Environmental category | B |
| Department | Agribusiness |
| Status | Pending Disbursement |
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| Date SPI disclosed | November 16, 2007 |
| Projected board date | December 18, 2007 |
| Previous Events | Signed: March 28, 2008
Approved: February 11, 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 |
| Bioparques de Occidente, S.A. de C.V. (Bioparques or the company), a greenhouse tomato producer is undertaking a $25 million investment program between 2005 and 2008 to add 85 hectares of hydroponic greenhouses and a packing facility to its existing greenhouses in the state of Jalisco, Mexico. The investment includes acquisition of additional land, greenhouses and irrigation equipment, infrastructure and working capital. |
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| Project sponsor and major shareholders of project company |
| The company is owned by the de la Vega family which also owns Impulsora Azucarera del Noroeste, S.A. de C.V. (Zucarmex), Mexico’s 3rd largest sugar producer representing about 10% of Mexico’s sugar production. |
| Total project cost and amount and nature of IFC's investment |
The project is implemented in two phases totaling $25 million.
The company requested IFC financing of up to $12 million, in the form of an A loan of up to $7 million, and a C income-participating loan of up to $5 million. The balance will be financed from cash generation. |
| Location of project and description of site |
| Bioparques is located in the municipality of San Gabriel in the state of Jalisco. The expansion project will be located 4 km from the existing site which is predominantly rural and about 140 km from the city of Guadalajara. The site is served by the Cd. Guzman – El Grullo highway. Bioparques’ management is located in Culiacán in the state of Sinaloa. |
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| Anticipated development impact of the project |
The investment will support the growth of a competitive tomato producer in Mexico through:
- unit cost reduction and higher utilization of capacity and economies of scale; and
- higher prices thanks to long term contracts with US vendors. Fresh tomatoes represent over 10% of Mexico’s agricultural exports to the USA.
Other benefits:
- Improve the lives of 2,400 seasonal employees by providing full time employment;
- Help the company to further improve its social and environmental sustainability;
- Assist the company in sponsoring housing permanent housing for its full time workers. |
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| IFC's expected development contribution |
Long-Term Financing:
Provide long-term financing beyond the average tenor of 5 years currently available for
primary agricultural production in Mexico;
Support the Horticultural Industry:
Support the tomato industry which represents 11% of total Mexican agricultural exports to the US;
Employment:
Enable the company to switch 2,400 workers from part-time to full-time employment thereby improving their standard of living;
Improve Working Conditions:
Help the company comply with local, ILO and IFC Performance Standards with respect to employment of labor;
Sustainable Water Usage:
Assist the company in undertaking a hydro-geological study and maximizing water recycling to ensure sustainable water management. |
| Environmental and social issues - Category B |
| This is a Category B project. The client’s facilities have moderate impacts on the environment and the community, and are manageable by readily available technologies. Please refer to the Environmental and Social Review Summary for more details. |
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| For inquiries about the project, contact: |
Eduardo de la Vega, CEO
Juan Jose Rios 723 Pte.
Col. Almada Culiacán,
Sinaloa, Mexico
The environmental documents will be made available at the following location:
Presidencia Municipal, San Gabriel, Jalisco.
Calle Manuel C. Michel No. 13, San Gabriel, Jalisco. CP 49700
Telephone: 01 343 42 7 00 03; 01 343 42 7 06 01 |
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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 |
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