Grupo Granjas Marinas S.A. de C.V. Summary of Project Information (SPI)       Project Name:    Honduras: Granjas Marinas      Region:Latin America   Sector:   Project No:009487   Projected Board Date:April 15, 1999   Company Name:Grupo Granjas Marinas   Technical Partner and/or Major Shareholders    	Grupo Granjas Marinas, S.A. de CV(GGM), is a Honduran holding company involved in the production of white Pacific shrimp. The Company is vertically integrated from genetics to the production of value added processed shrimp. GGM is a joint venture between U.S. and Honduran investors employing about 1500 staff in the Department of Choluteca, 200km south of Tegucigalpa. The Groups flagship company Granjas Marinas San Bernardo (GMSB) was founded in 1983 when the Honduran Government granted a 5,775-hectare concession in Choluteca. The Group manages about 2,500 ha of grow-out ponds, a hatchery, a deheading plant, and a processing plant in the town of San Lorenzo, 30km north of Choluteca.    Project Cost Including proposed IFC investment    	IFC is considering a US$9 million investment in the form of an A loan.    Location of project and Description of site    	GGM expansion sites and processing facilities are in the Department of Choluteca about 200KM south of Tegucigalpa.    Description of Company and Purpose of Project    	The project aims to assist GGM, the largest shrimp producer in Honduras, to restructure its working capital and initiate an expansion of its hatchery, farming and processing sites. GGM infrastructure was spared of major damage from Hurricane Mitch with some repairs needed to rehabilitate access roads, water intake/outflow structures, and grow-out ponds; however, heavy losses were realized in the form of goods in process loss (shrimp), as the Group''s grow-out ponds were fully stocked and ready to be harvested when Mitch hit.  GGM estimates losses at around 3.5 million lbs. of shrimp or 40% of its annual production or about US$8 million in foregone sales.  This has resulted in the deterioration of the Group''s working capital structure. Right before Mitch struck, GGM was in the process of launching a major expansion program to increase production, reduce raw material costs, increase processing efficiencies, and move further into production of value added shrimp based foods. The US$14 million expansion plan included: i) adding 800 new production hectares in Playon Palacios, an area adjoining the Group''s largest farm in San Bernardo, Choluteca; ii) expanding the Group''s local shrimp post larva hatchery (PL); and iii) modernizing its freezing equipment to reduce dehydration losses in the packing plant.     Environmental Category and Issues    	This is a category B project according to IFCs environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.  Key environmental, social and occupational health and safety issues that were of potential concern in the project include:  habitat loss, use of agrochemicals, water use and wastewater management, air emissions, Solid waste management and disposal, Environmental management capacity, occupational health and safety, land acquisition process, and potential indirect socio-economic impacts on artisanal shrimp farmers.    The project involves the rehabilitation and expansion of production sites and packaging plant including an additional 950ha of shrimp ponds.  New ponds will be constructed on unvegetated salt flats that support no significant fauna. No physical resettlement of people has occurred and there is no human activity on the proposed expansion site and no economic displacement will occur as a result of development.    Use of agrochemicals conforms with World Bank Group requirements.  Waste water effluents and air emissions are within World Bank Group guideline requirements for existing sites and facilities.  New pond areas and facilities will also conform to these requirements.  Solid waste is minimized and disposed of in an appropriate manner.     The company recognizes the benefits of environmental management and is developing an appropriate corporate environmental management system.  The company has also be instrumental in developing and promoting best practice in the aquaculture industry in Honduras.    The company has a comprehensive approach to employee relations and health and safety and has developed a code of work and industrial safety that has been endorsed by the local government Works Department.    The company envisages a progressive move towards hatchery reared post larvae over a five  ten year period and has offered support and loans to their wild caught post larvae contractors to move into other activities.      The  is March 9, 1999 from the InfoShop.       Date SPI sent to InfoShop:    March 11, 1999      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   facsimile: (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).