Aitken Spence & Company, Limited Summary Of Project Information (SPI)       Project Name    Sri Lanka - Aitken Spence Group            Region    Asia        Sector       Project No009107   Projected Board DateAugust 15, 1998   Company NameAitken Spence & Co Ltd   Technical Partner and/or Major Shareholders    	Aitken Spence Group (ASG or the Group) is one of the larger diversified conglomerates in Sri Lanka.  The majority of the Group''s interests are in tourism (ten resorts in Sri Lanka and two in Maldives). The Group is also involved in cargo handling, printing and packaging materials, garment manufacture, property development, insurance and light engineering.     Project Cost Including proposed IFC investment    	The total proposed private placement of equity is US$25 million, of which IFC proposes to take US$3-5 million.    Location of project and Description of site    	Companies in ASG are located in Sri Lanka and the Maldives.  ASG has ten resorts in Sri Lanka and two in the Maldives.  All the other activities of the Group are located in and around Colombo in Sri Lanka    Description of Company and Purpose of Project   (include IFCs Role and Development Impact)    	Aitken Spence Group (ASG or the Group) is one of the larger diversified conglomerates in Sri Lanka.  The majority of the Group''s interests are in tourism (ten resorts in Sri Lanka and two in Maldives). The Group is also involved in cargo handling, printing and packaging materials, garment manufacture, property development, insurance and light engineering. On a consolidated basis for the year ended March 31, 1997, Aitken Spence had net sales of Rs.2.7 billion (US$45 million) and an operating profit of Rs.246.7 million (US$4 million).  Total assets for the same period stood at Rs.5 billion (US$83 million) and the net worth was Rs.2.5 billion (US$42 million).                                                                                                             ASG proposes to raise US$25 million by way of a  private equity placement (being arranged by Lehman Brothers) in order to reduce its leverage and put in place a planned expansion program involving increasing their presence in the profitable Maldivian tourism sector and entering the infrastructure (power) sector. The Group has requested an IFC participation of US$3-5 million in the private placement.    	The proposed project allows IFC to play a long-term role in the development of a strong medium-sized enterprise towards global competitiveness.  The project would also be fully consistent with the Governments sectoral priorities where, (i) the diversification into tea and rubber plantations has been instrumental to the success and completion of the privatization program, and (ii) the proposed diversification into infrastructure (thermal power) can be expected to help reduce the gap between power demand and supply in Sri Lanka, in turn reducing the countrys over-reliance on hydro power.     Overall, IFCs role in the proposed project is two-fold: (i) technical assistance, both in terms of structuring the transaction and in providing technical input to the Groups various product lines, and (ii) by being a long-term investor in the Group, to provide assistance on the Groups future strategic plans and guidance on important areas such as corporate governance.  The group has signed a mandate with IFC to this effect. IFC will play a major role in strengthening the prospects for a successful placement, and by virtue of linking its name to that of the Group, will add substantial value to the market perception of the Group.     IFC will also add value to the Group through its technical expertise in the tourism and agribusiness areas.  In addition, although Lehman Brothers are the financial advisors to the transaction, there is likely to be an informal role for IFC in structuring the transaction. IFC will also help the Group in developing a cohesive long-term strategic plan, with a view to participating in future downstream projects in the infrastructure area.     Environmental Category and Issues    	Environmental issues : This is a category B project according to IFCs environmental review procedure. To ensure that environmental and occupational health and safety issues are addressed at the corporate level, IFC will require that the group have an appropriate management system in place to provide overall policy and direction for environment, health and safety (EH&S) matters and to ensure that the operating companies are responsible as well as accountable for their EH&S performance. As part of project appraisal, the Environmental Division will require  a review of the environmental and occupational health and safety performance of each of the groups existing operating companies. This investment will specifically include two 20 MW power plants and the following potential issues will be examined in each case : plant siting, air emissions and liquid effluents; solid waste handling and management; fuel storage and handling; fire protection and emergency response; and general worker health and safety.    The  is  from the Public Information Center.       Host country location of environmental documents    World Bank                                    Development Finance Corporation of Ceylon (DFCC) Building, Ist Floor, 73/5 Galle Road, Colombo 3, Sri Lanka.      Date SPI sent to PIC July 13, 1998   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).