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| This Summary of Project Information 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. |
Summary of Project Information (SPI) |
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| Project number | 10215 |
| Project name | SEF Bosnalijek II |
| Country | Bosnia and Herzegovina |
| Sector | Chemicals |
| Department | Global Manufacturing & Services |
| Company name | Bosnalijek, d.d. Sarajevo |
| Environmental category | B |
| Date SPI disclosed | July 20, 2000 |
| Projected board date | August 21, 2000 |
| Status | Completed |
| Previous Events | Invested: December 27, 2000
Signed: October 18, 2000
Approved: August 21, 2000 |
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| Project sponsor and major shareholders of project company |
| Bosnalijek is a Joint Stock Company with mixed ownership, that was established in 1951 in Sarajevo, Bosnia and Herzegovina (BiH). Through the earlier privatization process in 1991, the company's management and employees have obtained 51.3% ownership interest. The remaining 48.7%, state-owned portion is to be privatized through the process of mass privatization, expected to begin shortly. |
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| Total project cost and proposed IFC investment |
| Total project cost is estimated at US$5.9 million. The proposed IFC investment is a US$2.3 million loan for IFC's own account. |
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| Location of project and description of site |
| The expansion project will be implemented in an existing building, located on a 82,000 square meter industrial site west of downtown Sarajevo. |
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| Description of company and purpose of project |
The company is the only manufacturer of over-the-counter, prescription and hospital pharmaceuticals in BiH. Bosnalijek is a generic drug manufacturer. Presently it produces a range of 138 drugs in solid oral forms, ampoules, syrups, solutions, ointments and creams, of which 90% are produced according to its own proprietary technology.
The purpose of the project is to complete the reconstruction and modernization of the solid oral drug plant with the addition of tablet coating and packaging equipment.
This project is Phase II of the company's investment program, which aims to complete the reconstruction of the solid oral drug plant and modernize it with the addition of tablet coating and packing equipment. Phase I of the project consisted of re-building and modernising the tablet and capsules manufacturing operation; this was completed within budget in September 1998. The whole investment is essential to correct manufacturing process defects and to ensure that production will be in compliance with good manufacturing practices (GMP). Hence, the project should secure international GMP certification from the EU and elsewhere which is needed to access export markets. This will further consolidate the company's market position as a regional player in the production of solid oral drugs.
IFC's involvement will provide the company and Bosnia's health sector with long term funding needed to complete a modern drug manufacturing plant and achieve international quality standards and certification and increased exports. The company will also increase its ability to supply the domestic market with drugs that are currently imported. Both will contribute positively to Bosnia's balance of payments. |
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| Environmental and social issues - Category B |
This is a category B project in accordance to IFC's environmental procedures. Key environmental issues include: air emissions, liquid effluents, handling and disposal of solid and hazardous wastes, employee occupational health and safety, and employee training. The project has been designed to ensure that, by project completion, Bosnalijek will be in compliance with the applicable environmental and social policies and guidelines.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
At the company's administrative offices:
Bosnalijek, d.d.
Jukiceva, 55
Sarajevo
Bosnia and Herzegovina |
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| To contact the project company, please write to: |
Mr. Edin Arslanagic
General Manager
Bosnalijek, d.d.
Jukiceva, 55
Sarajevo
Bosnia and Herzegovina
+387 71 665 970
e-mail: blijek@bih.net.ba |
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