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| Wadi II |
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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 | 26138 |
| Company name | Wadi Holdings |
| Country | Egypt |
| Sector | Agriculture and Forestry |
| Environmental category | B |
| Department | Agribusiness |
| Status | Active |
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| Date SPI disclosed | June 6, 2007 |
| Projected board date | July 9, 2007 |
| Previous Events | Invested: November 4, 2008
Signed: July 11, 2007
Approved: July 9, 2007 |
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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 |
| Wadi Holdings Company (SAE) (Wadi or the company), a poultry producer and existing IFC client, is undertaking a 2 year investment program to expand its feed milling and pelleting capacity, plant olive groves and grape farms, establish a celpad plant, and expand its glass containers capacity. |
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| Project sponsor and major shareholders of project company |
| Wadi is a majority-owned by the members of Freiji and Nasrallah families (75.6%) while the 24.4% is owned by institutional shareholders namely CIIC, Arab Investment Company and Menavest. |
| Total project cost and amount and nature of IFC's investment |
| The estimated total project cost is $47 million. The proposed IFC investment is a $25 million A Loan for IFC’s own account. |
| Location of project and description of site |
| The company is headquartered in Giza of Egypt and has 13 subsidiaries in Egypt. The concerned subprojects will be located along the Cairo-Alexandria Desert Road. The expansion project of the glass plant is located in Sadat city, north of Cairo. |
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| Anticipated development impact of the project |
The proposed project will support the expansion of a successful company. In addition to the benefit for its financiers, the project is expected to have the following development impacts:
- Create new employment within the company;
- Improve poultry producer efficiencies and in turn benefit consumers;
- Support export oriented industries such as glass and olives. |
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| IFC's expected development contribution |
IFC will:
- Provide long term finance not easily available in the market;
- Improve management of environmental and social issues;
- Share poultry sector expertise particularly in improving efficiency and biosecurity;
- Help stakeholders regain confidence in the poultry sector in Egypt. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC's Environmental and Social Review procedure because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
Applicable Performance Standards (PS) are:
- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement;
- PS4: Community Health Safety and Security; and
- PS5: Land Acquisition and Involuntary Resettlement.
Environmental and social review of the project included evaluation of environmental and social information presented by Wadi. In addition, IFC professional staff performed a physical evaluation of the project sites and environs. The environmental, health, safety and social issues associated with this project are described in the Environmental Review Summary. |
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| For inquiries about the project, contact: |
Mr. Ramzi Nasrallah or Mr. Tony Freiji:
both of whom can be contacted at wadi@wadigroup.com and (202) 304-3837 or (202) 304-3839.
Environmental Review Summary and Environmental Action Plan for the investment are available for review at the following location:
Sadat City Investors Association
28 Aby Zer Elghafary
1st Residential District
Sadat City
Menoufia
Egypt |
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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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