Wings TAS 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	27129
Company name	PT Tirta Alam Segar
Country	Indonesia
Sector	Food & Beverages
Environmental category	B
Department	Agribusiness
Status	Active

Date SPI disclosed	April 14, 2008
Projected board date	May 14, 2008
Previous Events	Invested: September 16, 2008 Signed: June 24, 2008 Approved: June 18, 2008

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

PT Tirta Alam Segar (PT TAS or the company), is an existing IFC client owned by the Wings Group. The company currently produces ready-to-drink beverages. The company is seeking funds to finance an expansion of its production capacity.

Anticipated development impact of the project

The project is expected to have the following development impacts:

- generate new employment, primarily of women;
- increase income tax revenues paid to the government of Indonesia; and
- increase revenue and profits of small and medium sized enterprises which sell the company’s products.

IFC's expected development contribution

IFC’s expected development contribution may include:

- providing long-term local currency financing;
- assistance in helping the company comply with IFC’s Environmental & Social Performance standards.

Environmental and social issues - Category B

This is a Category B project under IFC’s Policy on Social and Environmental Sustainability 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, design criteria, local regulations and industry certification schemes. Environmental, social, health and safety issues which may be associated with this type of project, and which were reviewed during appraisal, included: management systems for environmental, health and safety (EHS), and life and fire safety issues; compliance with local and WB/IFC requirements for air emissions, wastewater discharges, indoor air quality, noise and waste management; energy, water and other material use and efficiency; labor issues and community engagement. This is an expansion of an existing IFC project which was previously assessed in 2006 as Category B. This existing investment has submitted an AMR in a timely fashion and is categorized as ESRR B-2 Average.

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement; and
- PS4: Community Health and Safety.

This ESRS assesses the project against the above Performance Standards. The project was not assessed against PS5 on Land Acquisition and Involuntary Resettlement, PS6 Biodiversity Conservation and Sustainable Natural Resource Management, PS7 on Indigenous People and PS8 on Cultural Heritage as no new land is required for the project, natural resources are not harvested from biodiverse areas or sensitive supplies and the project does not impact on either Indigenous Peoples or known Cultural Heritage.

In addition, the following Guidelines are applicable to this project:

- Environmental, Health and Safety General Guidelines, dated April 30, 2007; and
- Environmental, Health and Safety Guidelines for Food and Beverage Processing, dated April 30, 2007.

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