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Summary of Project Information (SPI) |
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| Project number | 9739 |
| Project name | Wood Agency Credit Line Vrbas m.d.p. |
| Country | Bosnia and Herzegovina |
| Sector | Finance & Insurance |
| Department | Global Manufacturing & Services |
| Company name | Wood Agency Credit Line Vrbas m.d.p. |
| Environmental category | B |
| Status | Completed |
| Previous Events | Invested: December 21, 1999 |
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Summary Of Project Information (SPI)
| Project Name | Bosnia and Herzegovina - SEF Vrbas m.d.p. |
RegionCentral and Southern Europe
Sector
Project No009739
Projected Board DateSeptember 3, 1999
Company NameVrbas m.d.p.
Technical Partner and/or Major Shareholders
Vrbas was established in 1912 in Banja Luka, Republika Srpska. The company is 98% state owned.
Project Cost Including proposed IFC investment
The total project cost is estimated at up to DM 3.5 million (US$ 1.95 million equivalent). The proposed IFC investment is a loan representing 90% of the project cost. The local agent bank will participate with the remaining 10% of the funds. Privatization of the company within two years of loan-signing is a requirement under the pre-approved IFC loan.
Location of project and Description of site
The company is located in the industrial area of the city of Banja Luka, on one of the main roads and near the Transit Highway. The project does not call for any changes to or expansion of the location, but only improvements to the existing facilities and machinery.
Description of Company and Purpose of Project
Vrbas produces sawn lumber, parquet, furniture parts, upholstered furniture, veneered and case goods furniture, and hardwood furniture. This project will involve the refurbishment and upgrading of the furniture production lines, as well as the upgrading of the lumber and parquet manufacturing facilities. The purpose of the project is to provide the funds for critical process improvement, working capital and equipment upgrading in order to proceed with the refurbishment and revitalization of the recipient’s activities. The investment will promote financial recovery of the wood processing sector in which Bosnia has traditionally had a comparative advantage. It is expected that the project will result in stabilized income and employment and will enable the company to respond to market requirements. Provision of technical assistance and support in the privatization process, as important parts of this project, will help the company pursue a path of sustainable long-term growth.
Environmental Category and Issues
This is a category B project according to IFC’s environmental and social review procedure. The key environmental, health and safety issues reviewed during project appraisal were: wood supply source and management; chemical usage, storage and handling; air emissions and workplace air quality; water supply and effluent; solid and hazardous waste management; emergency response and fire protection; and employee health and safety, and training. Vrbas will develop a formal environmental management system addressing compliance, monitoring, cleaner production, and energy efficiency. Based on its review of available information regarding potential environmental and social impacts and proposed mitigation measures, IFC concludes that this proposed project will meet the World Bank Group’s applicable environmental, health and safety policies and guidelines and the applicable requirements of Bosnia-Herzegovina.
The is from the InfoShop.
| Host country location of environmental documents | Vrbas headquarters in Banja Luka,
IFC field office in Banja Luka |
Date SPI sent to InfoShop August 4, 1999
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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