Abocol Project Abonos Colombianos S.A. (Abocol or the company), a mid-sized chemicals producer in Colombia, has approached IFC with a request for a corporate loan facility (the Facility) in the amount of up to $30 million.  The Facility will help Abocol implement its 2008-2010 capital expenditure program aimed at increasing operational efficiencies and backward integration, replacing low margin products with higher value-added products and expanding production capacities to respond to growing demand in niche markets.   In addition, IFC is considering providing a Carbon Delivery Guarantee (CDG) to enhance the value of approximately 1.25 million carbon credits (CERs) expected to be generated by the Company through 2012 from the abatement of nitrous oxide at its two nitric acid plants in Cartagena. Through the proposed Facility IFC will help a mid-sized Colombian fertilizer company with a focus in the agricultural sector enhance its competitiveness through investment in cost and technology improvements and capacity enhancements and allow it to better serve the farming population in Colombia and neighboring markets by responding to growing demand for higher quality complex fertilizers.  The introduction of new technologies, the replacement of imported raw materials with local inputs, and the realization of economies of scale are expected to result in lower costs for fertilizers allowing the company the flexibility to support an increase in agricultural production in the context of tight global food markets.  Abocols growth through value added and import substitution would help generate quality employment opportunities in Colombia, particularly in rural and mining communities.  In addition, there are specific developmental impacts associated with the Facility, which are summarized below:   Benefits to employees:   The company currently employs over 300 people directly and also generates approximately 700 full time jobs through contractors. Abocols growth is expected to create new employment opportunities not only in Colombia but in other neighboring emerging markets.  Local community benefits:   Abocol is an active member of Fundacion Mamonal through which it contributes to community projects.  The companys charity and sponsorship efforts are aimed at supporting educational projects and low-income people.  It is expected the Company will further enhance its corporate social responsibility and that with the additional cash flows resulting from Abocols future growth the company further enhances its community impact.  Benefits to the consumers/enhancing agricultural efficiency:   Abocols products help improve agricultural yields and promote efficiencies in the rural economy.  The products are made available on a cost-competitive basis to farmers, not only in Colombia but also in other emerging markets.  As Abocols fertilizers are an important input to agriculture, the company is in a key position to help enhance farmer income which is an important aspect of poverty reduction efforts of developing countries.  Benefits to the environment:   Abocol will further enhance the environmental conditions of the area where it operates by strengthening its environmental controls to have its operations complying not only with local but also with international standards.  In addition, it will ensure that its current and future subsidiaries and associated operations will protect the environment when it establishes the corporate structure to ensure sound EHS performance of these activities.