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| This Summary of Project Information 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. |
Summary of Project Information (SPI) |
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| Project number | 11633 |
| Project name | Favorita Fruit Company Ltd. |
| Country | Ecuador |
| Sector | Agriculture And Forestry |
| Department | Agribusiness |
| Company name | Favorita Fruit Company, Ltd. |
| Environmental category | B |
| Date SPI disclosed | August 20, 2002 |
| Projected board date | September 19, 2002 |
| Status | Active |
| Previous Events | Invested: March 24, 2003
Signed: February 3, 2003
Approved: November 26, 2002 |
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| Project sponsor and major shareholders of project company |
The project sponsor is Favorita Fruit Co. Ltd. (Favorita), a holding company incorporated in the British Virgin Islands owned by Mr. Segundo Wong and his immediate family, CDC Capital Partners (10%), and IFC (4.17%). Favorita owns Reybanpac-Rey Bananos del Pacífico C.A., one of Ecuador's leading banana growers and exporters.
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| Total project cost and proposed IFC investment |
The total project cost is estimated at US$30 million. The proposed IFC investment is a US$15 million A Loan for IFC's own account.
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| Location of project and description of site |
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| Description of company and purpose of project |
Favorita is one of the leading conglomerates in Ecuador's agribusiness sector. The company operates other wholly-owned subsidiaries whose activities include trading and shipping bananas, operating the Fertisa port terminal, importing fertilizers, producing cardboard boxes and plastic bags, and providing fumigation services.
The project involves acquiring and revamping 2,200 ha of developed banana plantations in the province of Los Ríos and related investments for ECO-OK certification, and miscellaneous investments in existing plantations.
Overall, the project will support the continuing growth of a long-standing IFC client that provides business for about 400 independent banana growers and associated services in a key industry in Ecuador. IFC expects to play an important role in assisting Favorita in its ongoing efforts of adopting best practices in corporate governance, and developing and implementing measures to raise awareness regarding child labor and compensation practices amongst its independent banana suppliers.
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| 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/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
The ERS will be disclosed in the company's main office in Guayaquil located in Av. Carlos Julio Arosemena, Km 2.5, and three administrative offices in Quevedo, province of Los Rios: Vía Valencia Km 1 1/2; San Camilo Arévalo y Juan Montalvo # 200 Esquina; and Km. 36 Vía Quevedo - Santo Domingo (Zulema-Quevedo).
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| To contact the project company, please write to: |
Rafael Wong; Av. Carlos Julio Arosemena, Km 2.5, frente al C.C. Alban Borja; Guayaquil-Ecuador.
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