SEF Burapha Agro-forestry Co. Ltd. Summary Of Project Information (SPI)       Project Name    LAO PDR - SEF BURAPHA WOOD PROCESSING (BAFCO)              Region    Asia        Sector       Project No008966   Projected Board DateApril 26, 1998   Company NameBurapha Agro-forestry Company Ltd.   Technical Partner and/or Major Shareholders    	 BAFCOs ownership is to be 75% Silvi Nova BV of Sweden, 20% Mr. Sumphorn Manodham, and 5% Mr. Thongthanh Southitham (formerly Silvi Nova held 90% and Mr. Manodham owned 10%).  Silvi Nova is a Swedish consulting and management company, equally owned by Messrs. Ake Jacobson, Hugo Berch, and Peter Fogde.   Mr. Sumphorn Manodham and Mr. Southitham are Lao citizens with extensive experience in Lao PDR and elsewhere in the agro-forestry industry.    Project Cost Including Proposed IFC Investment    	US$ 2.9 million including an IFC Loan of up to US$ 1.1 million    Location of Project and Description of Site    	 The Project site will be located at Nabong, less than one-hours drive from Vientiane and close to most of BAFCOs plantations.  The site is a flat piece of land on which BAFCO has a sublease up to the year 2012 with an option to renew.   The land is central to the plantation and is serviced with electricity and well water. IFCs engineering and environmental staff have visited the site and find it suitable.    Description of Company and Purpose of Project    	BAFCO will produce glue laminated board (gluelam) for use as furniture components for export to Europe and Asia. Air dried and kiln dried sawn lumber will also be sold to the local construction sector. BAFCO already has some 700 hectares of eucalyptus plantations which were planted in the 1990s.  These plantations will provide about 40% of the Projects log supply requirements in the Projects initial years, increasing to 67% within six years. IFC and the IFC- managed Mekong Project Development Facility have played an important role in the Project by reviewing the technical, strategic, financial, environmental, and legal arrangements.  Under the Extending IFCs Reach Initiative, IFC is one of the few sources of long-term capital for Lao projects. The Project supports the Lao Governments policy to promote private sector projects and, more specifically, projects which foster the preservation of Laos natural forests and the efficient use of Laos resources to produce value-added products.   By increasing the stump value of the plantation wood, BAFCO will encourage further development of private, farm-based plantation forestry, thereby contributing to the conservation of native forests and preservation of the environment.  In addition, BAFCO will allow farmers to generate income using land that in many parts of Lao is degraded and no longer suitable for food crops.  As the first eucalyptus gluelam unit in Lao, the Project will also introduce a new product and technology into the country while generating foreign exchange earnings and increased tax revenues.     Environmental Category and Issues    	This a category B project according to according to IFC''s 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.  The following potential environmental, safety and health impacts of the project were analyzed: wood supply source and management; air emissions; solid waste management; hazardous materials storage and handling; fire prevention and emergency response; and employee health and safety, and training.    Wood will be sourced from BAFCO''s existing eucalyptus plantations or will be purchased from other small eucalyptus plantations nearby.  No timber from natural forest areas will be purchased without the specific prior written approval of the IFC.  Air emissions including particulates from the wood-fired boiler and dust from sawing and planing activities will be controlled through appropriate technology to meet World Bank Group guidelines.  The solid wood wastes generated by the plant will fuel the boiler for the drying kiln.  Standard and reasonable fire detection and protection and worker health and safety measures will be implemented, including worker training in relevant aspects.  The project will be comply will the relevant World Bank Group policies and guidelines. IFC will monitor ongoing compliance during the lifetime of the Project by evaluating reports submitted annually to IFC by BAFCO and by conducting periodic supervision.     The  is  from the Public Information Center.         Date SPI sent to InfoShop     March 26, 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).