Bauducco NE

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	27783
Company name	Pandurata Alimentos Ltda.
Country	Brazil
Sector	Food & Beverages
Environmental category	B
Department	Agribusiness
Status	Active

Date SPI disclosed	May 14, 2009
Projected board date	June 15, 2009
Previous Events	Invested: August 19, 2009 Signed: June 22, 2009 Approved: June 19, 2009

View Environmental & Social Review Summary (ESRS), click here

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Pandurata Alimentos Ltda. (“Bauducco” or the “Company”) has an investment program for 2009-2011 to expand its production and logistics capacity. The investment program includes:

- the construction of its first plant in the state of Alagoas, one of the poorest states of the Northeast region;
- the construction of a new distribution center by the side of such plant; and
- incremental working capital

Anticipated development impact of the project

The Project will support the expansion of a leading food company into the economically poor Northeast region of Brazil. The plant will be established in the state of Alagoas, which has some of the lowest development indicators of Brazil.

Employment: By At the end of 2008, before the Investment Program started, Bauducco directly employed approx. 3,100 people and 400 seasonal jobs. Approximately sixty percent are female. As the Investment Program develops, the Company will hire new employees in the Northeast plant and will employ a permanent staff of 3,360 people (an additional 260) by the end of 2011, who will receive a number of benefits such as full medical insurance, life insurance, pension funds and a bonus scheme based on the Company’s performance.

IFC's expected development contribution

IFC’s Roles include: (i) support the Company’s expansion into the poor Northeast region, (ii) long-term partnership by supporting Bauducco’s ongoing strategy of expanding capacity and improving efficiencies, (iii) Environmental and Social performance expertise, especially for the new processing facility; (iv) Technical Assistance programs to reduce the energy and water resources required in its production process, and (v) provide long-term capital, currently scarce due to the credit crisis.

IFC’s funds are an important safeguard for the project. Without IFC’s participation, the Company would not implement the Project in the current market environment.

Environmental and social issues - Category B

This is a Category B project. The client’s new industrial plant will be located in Rio Largo city rural area designated for industrial land use. Bauducco’s sector specific activities (dry food products) have moderate impacts on the environment and the community. Expected impacts and risks of this project include environmental noise emissions, wastewater releases, odors emissions, workplace noise exposure, exposure to accident with moving parts, workplace heat exposure and environmental impacts and Occupational Health and Safety (OHS) risks during the construction phase.

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