Fugui WC

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 27160
Company namePT. Fugui Flour & Grain Indonesia
CountryIndonesia
SectorFood & Beverages
Environmental categoryC
Date SPI disclosedApril 10, 2008
Projected board dateMay 12, 2008
DepartmentAgribusiness
Date revised SPI disclosedApril 17, 2008
StatusActive
Previous EventsInvested: August 13, 2008
Signed: June 24, 2008
Approved: June 18, 2008
Overview

Project description
PT Fugui F&G Indonesia (PT Fugui or the company) is a flour-mill company located in Surabaya, and an existing IFC client. The company is seeking funds to finance its working capital requirement.

Sponsor/Cost/Location

Project sponsor and major shareholders of project company
PT Fugui is owned 100% by Fugui Flour & Grain (HongKong).
Total project cost and amount and nature of IFC's investment
The total project cost is estimated at up to $50 million. The proposed IFC investment includes up to a $30 million loan to PT Fugui through a combination of A and B loans.
Location of project and description of site
Gresik, Surabaya, East Java Province. The plant is located in a developing industrial area in north Gresik.

Development Impact

Anticipated development impact of the project
By supporting the sales and production of the company, the project is expected to have the following development impacts:

- maintain employment;
- maintain income tax revenues paid to the government of Indonesia; and
- maintain competition within the domestic market.

IFC's expected development contribution
IFC is expected to play an important role as it may:

- provide long-term local currency financing;
- assist in helping the company comply with IFC’s Environmental & Social Performance standards.
Environmental and social issues - Category C
IFC's early review of this investment has determined that it is anticipated that this project will have minimal or no adverse social or environmental impacts. Therefore, this project has been classified as a Category C project according to IFC’s Environmental and Social Review Procedure.

Contacts

For inquiries about the project, contact:
Utomo Tanto
PT. Fugui F&G Indonesia
Jl. Panglima Sudriman 123 Sidokumpul
Gresik 61111 – East Java, Indonesia

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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