Cefas S.A. Project Summary Of Project Information (SPI)       Project Name    Argentina - CEFAS S.A.       RegionLatin American and Caribbean   Sector   Project No009722   Projected Board DateDecember 6, 1999   Company NameCEFAS S.A.   Technical Partner and/or Major Shareholders    	CEFAS is controlled by Petroquimica Comodoro Rivadavia S.A. (PCR), which owns 99.99% of the company. Petroquimica Comodoro Rivadavia S.A. was founded in 1973. It is owned by the Brandi family (57.67%), the Cavallo family (40.98%), the IIC (1.25%) and company employees (0.09%). PCR''s two main lines of business are: (a) exploration and production of oil and gas; and (b) manufacturing of construction materials (Portland cement and other quarried materials through CEFAS).      Project Cost Including proposed IFC investment    	The total project cost is estimated at US$40.9 million. IFC is considering a US$10 million A loan and a US$5 million C loan, both for its own account.    Location of project and Description of site    	The project consists of: (i) physical restructuring of production facilities at Capdeville, Quilpo, Dock Sud, La Preferida, Zapala and Decavo; (ii) increase of quarry reserves and modernization of lime production facilities at La Providencia; (iii) construction of a new lime production plant at San Juan; (iv) establishment of a new distribution facility at Alianza; (v) general upgrade of environmental standards at all plants; and (vi) short-term debt restructuring.    Description of Company and Purpose of Project    	CEFAS S.A. is a medium-sized Argentine manufacturer of construction materials, with projected 1999 sales of US$33 million and assets of US$46 million. The company was founded in 1994 (but started operations in October 1996) when the sponsor, Petroquimica Comodoro Rivadavia S.A., decided to enter the lime market through a well thought-out strategy of acquiring some of the leading lime brands. In order to keep the lime operations separate from its main line of business (cement and oil & gas), PCR decided to spin-off the lime activity and created CEFAS. Since it was not possible to buy exclusively the brand names, CEFAS was forced to acquire the old and uncompetitive plants that manufactured those brand names. The  construction materials industry had been underinvested in for the last 20 years due to a recessive construction industry scenario and lack of financing options, especially for residential construction (i.e. mortgages). The construction sector is now poised for higher growth than the overall economy, thus increasing demand for CEFAS products. The firm''s goal is to exploit this opportunity by modernizing facilities, introducing new products and lowering costs. The implementation of the project is expected to strengthen CEFAS position in the marketplace by reducing production costs by 40% while increasing efficiency and productivity, acquiring reserves, developing new products and meeting national and World Bank environmental standards.       Environmental Category and Issues    This is a category B project according to IFCs environmental review procedure. Environmental issues associated with the project include air emissions; liquid effluent treatment/disposal; solid wastes; and quarry reclamation. Health and safety issues include employee exposure to dust, high temperature and noise; and contingency and emergency response plans. The sites are not located near sensitive habitats and no resettlement will occur as a result of the project. During construction and operation, the sponsor will implement all needed actions to ensure that there will not be negative impacts.    The sponsor has presented plans to address these issues and demonstrated that the proposed project will comply with applicable local regulations and World Bank policies and guidelines. The measures proposed to address the projects potential environmental impacts, for the existing operations, are being presented to CEFAS in a Corrective Action Plan (CAP) which includes the installation of air pollution control devices in all areas of dust generation; development and implementation of measures for the proper handling and disposal of liquid and solid residues; implementation of water reuse practices; and the development of quarry reclamation programs for all its current as well as abandoned quarries. For the new plant as well as its associated quarries, CEFAS will conduct an environmental impact assessment. A copy of this study will be submitted to IFC prior first disbursement   In addition, CEFAS will conform an environmental and health and safety corporate group and will develop a comprehensive environmental management system by which it will establish a detailed monitoring program, develop contingency plans, established occupational health and industrial safety programs, and employee training programs. CEFAS will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. However, during the implementation of the CAP, CEFAS will submit biannual environmental reports informing IFC about the progress of the CAP.    Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, by project completion, CEFASs operations will be in compliance with the relevant World Bank environmental, health and safety guidelines and policies and with the Argentinean environmental standards. IFC will monitor CEFASs ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.     The  is from the InfoShop.       Host country location of environmental documents    1) Dock Sud: Esc. Pública N° 8 Carlos de la Pena - La Boca - Capital Federal.   2) Olavarría: Esc. Pública N° 28 Teniente Coronel Florencio Monteagudo - Paraje La Providencia.   3) Zapala: Esc. Provincial de Educación Técnica N° 11 - Zapala - Prov del Neuquén.   4) San Juan: Esc. Profesor Alejandro Mathus   Ruta Prov. 901, Cienaguitas, Dto. Sarmiento, Prov. de San Juan.   5) Quilpo: Instituto Provincial de Enseñanza Media Manuel Hidalgo. Canteras Quilpo, Dto. Cruz del Eje, Prov. de Córdoba.      Date SPI sent to InfoShop October 29, 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).