SEF Ausmoz Farm Holdings, Lda Project NameMozambique  SEF-Ausmoz    RegionSub-Saharan Africa   SectorAgricultural Crops   Project No009997   Projected Board DateMay 24, 2000   Company NameAusmoz Farm Holdings, Lda   Technical Partner and/or Major Shareholders    The main sponsors of the project is Macpherson Consulting Group with 23% shares, a Harare based Australian firm that provides professional services for rural development. It has extensive experience with agricultural projects in Southern and East Africa where it has been involved in assignments financed by UNDP, IFAD, USAID, ADB and the World Bank. The other shareholders are:     - B&L Contractor from Zimbabwe with 14% shares;   - Mr. Pedro Americo, a Mozambican citizen with 15%; and    - three Australian citizens together with 48% of shares.    Project Cost Including proposed IFC investment    The total project cost is $1,865,000 and IFC proposes a loan investment of $746,000.        	   - Location of project and Description of site    The project will be located at Chitunga, in the central province of Manica, Mozambique, about 20 km from the Beira Road Corridor.         - Description of Company and Purpose of Project    Ausmoz is a Mozambican company registered in 1995, when it obtained a 50-year renewable lease on a area of 1,953 ha of agricultural land. About 200 ha have been developed up to now and the purpose of the project is to fully develop the remaining 1,753 ha for the cultivation of cotton, maize, wheat, sunflower, and soybean.   The project has the potential to act as a catalyst to develop food production in one of the poorest areas of Mozambique. The project will also have an impact in the balance of payments of the country by generating foreign currency revenue and substituting imports.    - Environmental Category and Issues:    This is a Category B project according to IFC''s environmental review procedure.  Key issues related to irrigation system(s) include:     - source and volume of irrigation demand and other water requirements;    - impacts on riverine hydrology of damming or other water extraction activities if applicable;   - potential loss of grazing land and wildlife habitat from damming, if applicable;    - impact on fisheries and subsistence fishing if applicable;    - minimum flow maintenance and impacts on downstream users;   - increased waterborne diseases;    - restoration of land disturbed during rehabilitation and construction; and   - general worker safety during construction.      Key issues related to plantation management include potential social issues involving:     - land occupation, land tenure, land use and physical or economic displacement;    - source of power including fuel storage;    - selection, handling, application and disposal of agrochemicals;   - agrochemical container disposal; integrated pest management;    - provision of personal protective equipment and employee health and safety training;    - regular medical check-ups for employees handling agrochemicals;   - emissions from boilers and other sources;    - workplace hygiene and housekeeping;    - solid and liquid waste disposal; and    - fire protection and life safety.     IFC is reviewing details of Ausmoz''s environmental management activities and social programs, as well as the findings of the project Appraisal Report. Details of the proposed operating procedures and mitigation measures are provided in the Environmental Review Summary (ERS) for the project.    Host country location of environmental documents:     1. The project site at Chitunga.    2. The City Hall in Chimoio.    3. Provincial Agricultural Department in Chimoio.    Date SPI sent to InfoShop April 24, 2000          This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:      Corporate Relations Unit    Telephone: (202) 473-7711   Fax: (202) 974-4384  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).