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| Conaprole Exp. |
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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 | 24791 |
| Company name | Cooperativa Nacional de Productores de Leche |
| Country | Uruguay |
| Sector | Food & Beverages |
| Environmental category | B |
| Department | Agribusiness |
| Status | Active |
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| Date SPI disclosed | December 27, 2006 |
| Projected board date | January 26, 2007 |
| Previous Events | Invested: December 31, 2007
Signed: March 15, 2007
Approved: February 20, 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 |
| The project entails building a powder milk plant with a capacity to produce 6 tons per hour, along with associated milk reception, storage, and wastewater-treatment infrastructure. Additional funds will be required to finance the purchase of additional raw milk from dairy producers, and to undertake miscellaneous upgrades in existing production lines. |
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| Project sponsor and major shareholders of project company |
| Cooperativa Nacional de Productores de Leche (Conaprole or the Cooperative) is an existing IFC client and Uruguay’s leading dairy processor. Founded in 1935, Conaprole is Uruguay’s second largest private company and the country’s largest exporter. The Cooperative is owned by about 2,300 dairy farmers, employs 1,450 workers, and operates eight milk-processing plants across the country that process almost 900 million liters of raw milk per year (two-thirds of the country’s total). The project will allow Conaprole to process increasing raw milk supply from its members. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $62.5 million. The proposed IFC investment is a $30 million A Loan for IFC’s own account. |
| Location of project and description of site |
| The new powder milk plant will be constructed at the Cooperative’s existing plant located in Villa Rodriguez (Plant # 8), Department of San Jose, about 100 km west of Montevideo. In addition, Conaprole will invest in the regular upgrade of existing facilities over the next three years. |
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| Anticipated development impact of the project |
The additional demand will create a platform for increased raw milk production from more than 2,300 cooperative members. Dairy farming is itself a significant source of employment: the Cooperative's members directly account for employment of 3,300 permanent workers, including family members. The increased volume of milk processed will result in increased revenues for all partner SMEs, such as raw milk trucks and over 60 independent distributors.
The Cooperative currently has 1,450 direct hires (200 women), and also hires about 250 seasonal employees during the peak milk-supply period. The project is developed in a province that has a higher unemployment rate and a lower income per capita than the national average. With the project, the company expects to hire about 50 additional employees (direct and seasonal) by 2010. The construction itself will employ up to 300 workers. |
| IFC's expected development contribution |
IFC will contribute with the sector’s long-term viability by supporting Conaprole’s ongoing strategy of consolidating capacity and improving efficiencies. IFC will contribute to the expansion of a leading export-oriented private sector company in Uruguay, in an internationally competitive sector.
IFC will also seek ways to help Conaprole support farmers through linkages programs. IFC will also play an important role in guiding Conaprole’s Environmental Unit in institutionalizing environmental best practices. |
| 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 that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria.
Environmental and social review of the project will encompass evaluation of an environmental and social impact study commissioned by Conaprole to an external contractor. In addition, IFC professional staff performed a physical evaluation of the project site and environs.
For further detail please refer to the Environmental and Social Review Summary (ESRS). |
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| For inquiries about the project, contact: |
Mr. Jose Luis Rial
Magallanes 1871, 1er Piso
CP 11800 Montevideo
Uruguay
Tel: (598-2) 924-6671 |
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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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