|
|  |
| Delta-Wilmar CIS Expansion |
|
| 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 | 26271 |
| Company name | Delta-Wilmar CIS Ltd |
| Country | Ukraine |
| Sector | Agriculture and Forestry |
| Environmental category | B |
| Department | Agribusiness |
| Status | Pending Disbursement |
|
| Date SPI disclosed | July 17, 2008 |
| Projected board date | August 25, 2008 |
| Previous Events | Signed: November 13, 2008
Approved: October 23, 2008 |
|
| View Environmental & Social Review Summary (ESRS), click here |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Delta-Wilmar CIS, a palm oil refinery and shortening manufacturer and current IFC client in Ukraine, will increase its capacity and invest in related infrastructure at its plant near the Yuzhny port in Odessa region. |
|
| Project sponsor and major shareholders of project company |
| Delta-Wilmar CIS is wholly owned by Singapore based Delmar Pte Limited, which is a 50:50 joint venture between the main Project sponsors: Wilmar International Limited and Delta Exports Pte. Limited. Wilmar International is one of the leading processors and merchandisers of oilseeds and edible oils in Asia. Delta Export is a Singapore based bulk commodity trader specialized in the CIS countries. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at around $235 million. The proposed IFC investment is a $45 million A loan for IFC’s own account. |
| Location of project and description of site |
| The project is located in an industrial zone near the Black Sea Port of Yuzhny in Odessa region. |
|
| Anticipated development impact of the project |
The project is expected to have the following development impacts:
- supporting the growth of a private productive enterprise in the CIS;
- providing a quality refined tropical oils to the food processing industry;
- enhancing competition in the fats and oils market;
- establishing an infrastructure investment supporting the trade and refining of tropical oils into the CIS markets;
- bringing additional tax revenues for the Government of Ukraine with import duties and corporate income tax;
- offer further leverage to improve the company's environmental and social management capabilities; and
- local employment generation. |
 |
| 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 is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to the applicable performance standards, guidelines and design criteria. IFC’s environmental and social appraisal for the project consisted of document review, company interviews, visits to the proposed project sites, and meetings with members of the local communities. Information about how potential environmental and social impacts are addressed by the company is presented in the Environmental and Social Review Summary (ESRS) disclosed on IFC’s website and locally in Yuzhny. |
|
| For inquiries about the project, contact: |
Mr. S. Anantha Raman, CFO
6 Industrialna Str.,
Yuzhne, Odessa Oblast,
65481, Ukraine
E-mail: ananth@deltawilmar.com
Phone: + 38 0 50333 6742
Fax: + 38 048 734 6479 |
|
| 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 |
| Local access of project documentation |
General information concerning the company's environmental, health and safety performance, including ESIAs for the various components of the project, as well as the copy of the IFC's Environmental and Social Review Summary in the Russian and Ukrainian languages, is available and can be obtained for review from:
Mr. S. Anantha Raman
6 Industrialna Str.,
Yuzhne, Odessa Oblast,
65481, Ukraine
E-mail: ananth@deltawilmar.com
Phone: + 38 0 50333 6742
Fax: + 38 048 734 6479 |
|
|
|
|