Banvit II

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	25711
Company name	Banvit Bandirma Vitaminli Yem Sanayi A.S.
Country	Turkey
Sector	Food & Beverages
Environmental category	B
Department	Agribusiness
Status	Active

Date SPI disclosed	April 5, 2007
Projected board date	May 7, 2007
Previous Events	Invested: June 19, 2007 Signed: May 21, 2007 Approved: May 10, 2007

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Banvit Bandirma Vitaminli Yem Sanayi Anonim Sirketi (Banvit or the company), an integrated poultry producer and existing IFC client, is undertaking a three-year capital investment program designed to expand and modernize its existing broiler and feed milling operations, to enter into the beef sector in Turkey and to establish a hatchery in Romania.

Anticipated development impact of the project

Banvit is the leading employer in Bandirma. The company directly employs about 1,900 employees in Bandirma and Izmir and has exclusive contractual arrangements for the operation of 700 broiler and breeder farms which provide employment to numerous others. In addition to the direct benefits of the project accruing to the current employees and associated farmers, the project will support economic growth of the Bandirma region through forward and backward linkages associated with both increased poultry production and incomes of outgrowers and Banvit’s employees.

IFC's expected development contribution

IFC’s financing will provide support for the expansion and modernization of an IFC client and a leading poultry producer in Turkey that relies not only on IFC’s funding but also technical expertise and support. IFC’s role would be to support a successful client with strong industry experience by providing long-term financing to expand and modernize its local business, become more self-reliant for its increasingly important raw material – red meat - and invest in a neighboring country (Romania), contributing to its much-needed poultry industry development.

Environmental and social issues - Category B

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review analyzed potential environmental, social, health and safety impacts including Banvit's management capacity to address these issues, emissions to the environment, hazardous materials, waste management, labor, occupational health and safety and community engagement. The identified environmental, social and health and safety impacts which require ameliorative measures are summarized in a Corrective Action Plan (CAP) that Banvit will implement as part of IFC’s Loan Agreement. Upon successful implementation of the agreed mitigation measures, the proposed project is expected to comply with local laws and regulations as well as applicable World Bank/IFC guidelines for environmental, social and health and safety. The Environment and Social Review Summary (ESRS) and the CAP have been locally disclosed, and are also available on the internet at: http://www.banvit.com.

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