SEF Lignosper Summary Of Project Information (SPI)       Project Name    Bosnia-Herzegovina - Lignosper              Region    Europe        Sector       Project No008459   Projected Board DateDecember 15, 1997   Company NameLignosper (the Company)   Technical Partner and/or Major Shareholders    	The sponsor of the project is the currently state-owned company Lignosper, which is scheduled to be privatized shortly.  The current management, including General Manager Mr. Nedeljko Suzic, and employees of the Company plan to become shareholders when Lignosper is privatized.      Project Cost Including proposed IFC investment    	The total project cost is DM 7.2 million, including an IFC loan of DM 3.6 million.  The project was identified and is being processed under IFCs Extended Reach Program.    Location of project and Description of site    	The project will be located at the Companys current production site 3 kilometers west of the town of Novi Grad in Republika Srpska, the Bosnian Serb Entity of BiH.  Novi Grad is situated on the western border with Croatia.  The plant was established in 1960.    Description of Company and Purpose of Project    	The project is to refurbish and upgrade this existing wood processing and furniture manufacturing facility.  Project implementation will enable the Company to lower production costs, procure essential new plant and equipment to re-establish several of its production lines destroyed in the war, and provide working capital necessary to restore its contractual relations with western furniture distributors.  IFCs loan would provide the Company with needed long-term financing, which is not otherwise available.  With project implementation, Lignosper will re-employ some of the skilled labor which was laid off during the war, increasing the staff from the current level of 583 to a total of 730.  Management and staff training provided as part of the project will increase the skills level of the work force.    Environmental Category and Issues    	This is a category B project according to IFCs environmental review procedure.  Environmental, social, and occupational health and safety issues associated with this project include: air emissions, energy efficiency and materials management stystem, and the corporate environmental management system, including responsibility for environmental and occupational health and safety issues.  The sponsor has submitted adequate information to verify compliance of existing operations with local requirements and World Bank guidelines.    The  is  from the Public Information Center.       Date SPI sent to PIC     November 13, 1997      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).