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Ingenio Montelimar
Environmental & Social Review Summary

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein that has been prepared by the project sponsor, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision.
Project number 32253
Country
Nicaragua
RegionLatin America and the Caribbean
SectorF-AB - Sugar and Confectionery
Department
Company nameNAVINIC
Environmental category:A
StatusActive
Date ESRS disclosedMarch 6, 2013
Previous EventsInvested: October 29, 2013
Signed: June 27, 2013
Approved: May 9, 2013
View Summary of Investment Information (SII), click here

OverviewE & S Project

Categorization

and Applicable

Standards
E&S Risks /

Impacts and

Mitigation
Community/

Engagements
BCSE & S Action

Plans
Availability

of Full

Documentation

Overview of IFC's Scope of Review
IFC’s environmental and social specialists visited the corporate offices of the Nicaraguan Shipping Consortium’s (NAVINIC, Montelimar or the Company) in Managua to obtain general operations orientation and to collect data about agricultural (plantations) and sugar milling operations. The team subsequently visited the Montelimar sugar mill (owned by NAVINIC) and current agricultural operations in July 2012. Further visits were made by IFC’s social specialists and consultants from August to November 2012 to further understand the underlying land acquisition legacy and land tenure issues in the Montelimar area and, more specifically, within the project’s footprint. Meetings were held with World Bank staff currently working on the on-going land titling and ownership project with Government of Nicaragua agencies, namely Corporaciones Nacionales del Sector Publico (CORNAP) and the Attorney General’s Office (PGR), responsible for land titling in Nicaragua. The government’s response to queries regarding financing the project was positive and the Government of Nicaragua (GoN) was able to provide some general guidelines on how they intend to proceed with titling for those residents on the land recently returned to the GoN by the Company. A Consultant carried out the field work in the Departments of Managua, Leon and Carazo to gain a better understanding of the communities located near or on land (and farms) owned or operated by NAVINIC and on GoN owned lands. IFC social specialists accompanied the consultant on two separate occasions during the field work.
Project Description
Ingenio Montelimar, owned by NAVINIC since 2000, is the smallest of four sugar mills in Nicaragua. It presently has a sugar cane processing capacity of 2,300 metric tons/day. The project will enable the Company to double its sugar production and cane processing through: 1) acquisition of an additional 1,628 ha for cane cultivation; 2) improving agricultural infrastructure and drip irrigation; and 3) purchase and deployment of green cane harvesters and transport equipment. In addition, sugar cane milling capacity will be increased to 4,100 metric tons/day; with annual production increasing from 33,000 mt. to 67,000 mt. The increased scale of operations will allow for the installation of a high pressure boiler and supplemental cogeneration plant in 2-3 years with concomitant increases in the sale of biomass-generated electric energy to the national grid.

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