Agro Industrial Paramonga S.A. Summary Of Project Information (SPI)       Project Name    Peru-Paramonga            Region    Latin America & Caribbean        Sector    Food and Agribusiness      Project No008279   Projected Board DateOctober 31, 1997   Company NameAgro Industrial Paramonga S.A.   Technical Partner and/or Major Shareholders    	The main sponsors are Mr.Jaime Mur, the president of Corporacin de Productos Alimenticios Nacionales PYC S.A., the countrys leading bakery, and the Wong Group, which operates a chain of 14 supermarkets in the Lima area.    Project Cost Including proposed IFC investment    	Project cost is estimated at US$68.9 million.  IFCs proposed investment consists of an A loan of up to US$22 million and a B loan of up to US$23 million.    Location of project and Description of site    	The project is located at Paramonga, on a coastal plain 195 km north of Lima.  The mill and 5,200 ha of cane fields are situated in a valley between the Fortaleza and Pativilca rivers.        Description of Company and Purpose of Project   (include IFCs Role and Development Impact)    	The project will produce 120,000 tons of refined cane sugar for domestic and industrial use.  It will be the first sugar estate in the country to be rehabilitated.  IFCs involvement supports the government program to captitalize the sugar sector, and has a strong demonstrative effect as the Paramonga model will undoubtedly be followed in the capitalization of other sugar companies.  IFC plays a catalytic role by mobilizing US$23 million in B loan participation.  Through the companys extension program, crop financing, know-how and new cane varieties will be made available to outgrowers. IFC was instrumental in bringing new technology to Peru (diffuser technology, co-generation), and in arranging for technical flows between the company and the sugar industry in South Africa. The project insures the survival of a company which was technically bankrupt, thus safeguarding 1,800 jobs in a rural area, and enabling the company to pay some US$18 million in back wages and benefits to workers.          Environmental Category and Issues    	This is a category B project according to IFCs environmental review procedures.  The company has developed plans to address all environmental and social issues.  Mill process water is recycled for irrigation, filter cake is used as a fertilizer and bagasse is burnt to provide energy.  The boiler will be equippped with wet scrubbers to meet World Bank air emissions standards.  Due to overstaffing, the company plans to terminate 309 workers.  A comprehensive package of health and safety measures will be incorporated in the project, including training in the handling and use of fungicides/pesitcides.  Current overstaffing at the mill will be addressed through a phased program of retirement and lay-offs negotiated with staff and unions, and the company has prepared detailed plans to provide displaced workers with severance or retirement pay packages, training to acquire new job skills, and assistance in starting their own businesses.  In addition, an outplacement and counseling office have been established to assist workers in finding suitable employment.    The Environmental Review Summary is available from the Public Information Center.       Date SPI sent to PIC     September 16, 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).