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Nicaragua Sugar Estates Limited S.A.
Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed 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 of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 25331
Country
Nicaragua
RegionLatin America and the Caribbean
SectorSugarcane and Beets
Department
Company nameNicaragua Sugar Estates Limited
Environmental category:B
StatusActive
Date ESRS disclosedSeptember 21, 2006
Previous EventsInvested: November 2, 2006
Signed: October 27, 2006
Approved: October 25, 2006
View Summary of Proposed Investment (SPI), click here

OverviewCategory &

Applicable Standards
Key Issues

& Mitigation
Community/

Engagements
Client's

Documentation

Overview of IFC's scope of review
The appraisal mission took place from August 13 – 18th. Mission members of IFC staff included Robert Horner (IFC environmental specialist), Edward Hsu, Edgar Restrepo, Michael Maynard, and Jose Luis Rueda (IFC environmental specialist). A follow-up visit was made by IFC social specialist John Butler from September 4 to September 7, 2006.

The project sponsor commissioned preparation of an Environment Impact Assessment(EA) for the investment in the 75,000 l/day ethanol plant at Ingenio San Antonio. IFC reviewed this document as well as proposed amelioration tasks described in the environmental management plan to mitigate impacts highlighted in the EA, including social and environmental management specifications. Additionally, IFC reviewed supplemental information requested of the client including proposed environmental and social affairs management programs, community engagement, and disclosure.

IFC communicated closely with client staff responsible for environmental and social affairs including:

- Joaquin Zavala, Corporate Vice-General Manager
- Alvaro Bermudez, Corporate Director of Administration
- Tito Silva, Manager, Mills Operations
- Ivette Reyes, Coordinator, Environment
- Luis Enrique Pena, Head of Human Resources

Field visits and visual inspection of sites included:

- Ingenio San Antonio (ISA) Sugar Estates and ISA Sugar mill at Chichigalpa, Chinandega
- Granja Aquicola/Camaronera
- Headquarters at Centro BAC, Centro Empresarial Pellas in Managua
Project description
Nicaragua Sugar Estates Limited (NSEL) is the proprietor of the agro-industrial complex Ingenio San Antonio (ISA) or San Antonio Sugar Mill, whose principal activities include:

- Growing, processing and commercialization of raw and refined sugars and by-products such as molasses and ethanol using approximately 24,223 Ha of cane field, of which 15,106 Ha is owned or leased land;
- Production and sale of electrical energy to the national grid; and production of shrimp.

The NSEL Project Includes:

- Purchase from willing sellers of up to 2,482 Ha of cane rearing lands in Chinandega, irrigation and harvesting and other agricultural equipment for cane rearing activities;
- Investment for de-bottlenecking of milling capacity (emissions scrubbers, radial evaporators, etc.);
- Refinancing debt, and
- Investment in the 75,000 l/day ethanol plant at ISA, recently completed.

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