| Project description |
| Cartones America is planning to reduce their use of energy at their plant in Cali, Colombia. The energy efficiency improvement project planned by Cartones consist several sub-projects which will help it to reduce its energy consumption and thus reduce the operating cost for energy by almost 17% annually. This project is an overall energy systems improvement which will consist of improving the electrical system, such as lowering the voltage setting on the transformers, improving the transmission efficiency of motor by using poly V-belts instead of ordinary V-belts, increase the efficiency of the electric motor by replacing large standard efficiency motors with high efficiency motors and also down sizing motors so that they operate at optimal loading, the plant will also install variable speed drives on some application so that the supplied power to the machines matches the demand and also improve its lighting and refrigeration systems. On the thermal side the plant will be improving the efficiency of its boilers by installing automatic air-fuel regulators, improving its insulation on its steam pipes, valves and flanges and most importantly it will be improving the steam/ condensate management system at its Paper machine 3 so that its specific steam consumption will be reduced. Together, these “Cleaner Production” investment for energy efficiency qualify for funding via IFC’s Board approved Cleaner Production Lending Pilot, a $20 million Facility via which IFC can provide Cleaner Production sub-loans to its existing portfolio clients. |
|
| Project sponsor and major shareholders of project company |
Cartones America S.A. is a leading privately-owned, Andean Region manufacturer of containerboard, corrugated boxes, clay-coated paperboard, spiral tube board and specialty board packaging products. The Group traces its roots back to the 1950s in Cali, Colombia. In recent years, the Company has grown steadily, investing in its operations in Colombia, Venezuela, Ecuador, Peru and Chile.
Cartones América S.A. (incorporated in Cali, Colombia) is the holding company of the Group and holds directly or indirectly 100% of the operating subsidiaries in Peru, Venezuela and Ecuador and 71% of its subsidiary in Chile. |
| Total project cost and amount and nature of IFC's investment |
| The estimated total project cost is $755814 and the proposed IFC investment is an A Loan (Cleaner Production Loan) of $756,000 equivalent for IFC’s account. This investment in Cartones America will be a sub-loan for the above mentioned dedicated lending facility established as part of IFC’s Cleaner Production Lending Pilot initiative. |
| Location of project and description of site |
| The Cleaner Production Investment will be implemented at Cartones America’s Cali plant, which is located about 190 miles South-West of Bogota. |
|
| Anticipated development impact of the project |
Cartones America’s Cleaner Production Investment are expected to result in:
- Improved Energy Efficiency and Reduced Costs: By implementing this project, the plant will improve its overall electrical and thermal energy consumption. Key energy saving areas are in the motors and pumping (electrical), and steam use (thermal). The CP Project is expected to improve energy efficiency of CAME’s Cali plant by 16.5%, translating into an estimated 11% in annual energy cost savings.
- Reduced Greenhouse Gas (GHG) Emissions: Implementation of the CP Project is expected to reduce GHG emissions from the Cali plant site by approximately 4300 tons of CO2 equivalent per annum which is about 11% of the total existing GHG emissions of this site. |
 |
|
| IFC's expected development contribution |
| IFC will assist Cartones America with their objective to find solutions for more efficient use of energy both electrical as well as thermal via financing their Cleaner Production investments with an appropriately structured senior loan. IFC will work with the company to help quantify expected operational and environmental benefits from its Cleaner Production Investments. This investment may have a demonstration impact as this is the first Cleaner Production loan IFC will be extending to a real sector client in Colombia. |
| Environmental and social issues - Category C |
This is a supplementary loan to an existing IFC borrower, with the loan proceeds to be used entirely for Cleaner Production projects mentioned above in this SPI. The project will reduce the environmental impact of manufacturing; this is therefore a Category C project.
|
|
| For inquiries about the project, contact: |
Mr. Juan Andujar
Cartones America S.A.
Calle 70 Norte # 2A-130
Cali, Colombia
Tel 57-2-681 88 12 Fax: 57 2 664 82 52
e-mail: juan.andujar@cartonesamerica.com |
|
| 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 |
|
|
|
|