Delta-Wilmar CIS

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	24644
Company name	Delta-Wilmar CIS Ltd
Country	Ukraine
Sector	Food & Beverages
Environmental category	B
Department	Agribusiness
Status	Active

Date SPI disclosed	May 30, 2006
Projected board date	June 29, 2006
Date revised SPI disclosed	November 9, 2007
Previous Events	Invested: October 18, 2006 Signed: July 5, 2006 Approved: June 27, 2006

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Delta-Wilmar CIS will construct, equip and place into operation a 1,500 metric ton per day crude palm oil (CPO) refinery in Ukraine.

Anticipated development impact of the project

The project is expected to have the following development impacts. It will:

- support the growth of a private productive enterprise in the CIS;
- provide a refined tropical oils to the food processing industry;
- enhance competition in the fats and oils market;
- establish an infrastructure investment supporting the trade and refining of tropical oil into the CIS markets;
- bring additional tax revenues for the Government of Ukraine with import duties and corporate income tax; and
- offer further leverage to improve the company's environmental and social management capabilities.

IFC's expected development contribution

IFC’s expected contribution to the project would include:

- promoting a “South-South” investment from an existing IFC client specialized in the trade of agricultural commodities (Wilmar) to a manufacturing plant in Ukraine; and
- providing long-term finance which is not otherwise available in Ukraine.

Environmental and social issues - Category B

This project has been categorized as a Category B project according to IFC's environmental and social review procedure. Appraisal of the investment entailed a close scrutiny of the CPO supply chain and the specific operations slated to provide raw materials for the proposed refinery as well as a visit to the site of the proposed refinery. With IFC as full, voting member of the Roundtable on Sustainable Palm Oil (RSPO), involvement in such projects has a higher, more visible profile for the corporation. Accordingly, during appraisal, the company’s practices and performance in its own supply chain were reviewed to assess compliance with national law and with IFC’s policies and guidelines, as well as consistency with the RSPO Principles and Criteria for sustainable palm oil production. Environmental and social issues associated with this project and that evaluated during appraisal included: environmental and social affairs management and on the ground performance of supply chain CPO plantations and mills; site selection, acquisition, development and permitting of the proposed refinery in the Ukraine; quality and sustainability of potable water supply; handling and disposal of hazardous and non-hazardous waste; management of bentonite filtrates; liquid effluent management; air emissions; occupational health and safety; and systematic management of quality, environmental and social issues, and occupational health and safety.

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