Viktor Lenac d.d. Summary Of Project Information (SPI)       Project Name    Croatia - Viktor Lenac d.d.      RegionCentral and Southern Europe   Sector   Project No009655   Projected Board DateOctober 29, 1999   Company NameViktor Lenac d.d.   Technical Partner and/or Major Shareholders    	Viktor Lenac d.d. had over 900 shareholders, all private, as of July 1 1999. Major shareholders include Beleggingsmaatchapig Ella III of the Netherlands (35.2%), Montiron Shipping Corporation Ltd. of Liberia (10.5%), Inter Holdfin of the USA (10.2%), and IHF d.o.o. of Rijeka, Croatia (9.32%). No other shareholder owns more than 5% of the shares.    Project Cost Including proposed IFC investment    	The project is expected to cost up to US$92.5 million. IFC would provide up to US$11.4 million of debt for its own account (IFC A loan), up to an additional US$11.5 million of syndicated debt (IFC B loan), up to US$4.25 million of ordinary equity, and up to US$5.375 million of preferred equity.     Location of project and Description of site    	The project will be on property leased under a 32-year concession agreement by Viktor Lenac, roughly 5 km south of Rijeka, on the Adriatic Coast of Croatia. This land includes Martinscica Bay, where most of the operations of the company now take place, as well as land adjoining the Bay to the south, where a US$43 million steel machining and steel assembly facility will be built. Behind the proposed new facility are stone cliffs, which will provide most of the stone used in shoreline civil works. US$12 million of the project will be used to purchase a large floating dock, which will be moored in Martinscica Bay itself.      Description of Company and Purpose of Project    	Viktor Lenac is the only private industrial-scale shipyard in Croatia. It is listed on Tier 1 of the Zagreb stock exchange. The company performs repairs and conversions of vessels, as well as the construction and conversion of offshore platforms. The project is a five-year investment plan to improve the company''s productivity and to increase its ability to build and service large marine vessels and other constructions related to the offshore oil and gas industry. The project will create more than 400 new jobs and provide a strong boost to hundreds of other subcontractors and small businesses in the Rijeka area.     Environmental Category and Issues    	This is a Category B project according to IFC''s environmental and social review procedure. Environmental and social issues associated with this project include: additional air and water pollution control measures required for the new facility; solid waste management; reclamation of the area used to quarry stone; adequacy and implementation of occupational health and safety procedures; impact of redundancy following privatization.     Air emissions will be minimal. There are no power generation facilities or boilers on site (power is drawn from the grid). The metal working areas will be equipped with a filtration system for fugitive emissions. Emissions of particulate matter generated by quarrying a neighboring stone cliff face will be mitigated through dust depression measures.    Victor Lenac has largely switched to high pressure water, instead of sand blasting, to clean steel sheets. Process and stormwater discharge is to the municipal sewer for which the company has the appropriate permits. Waste is disposed of to private contractors and a municipal landfill. Oil is recycled.    The company is implementing occupational safety and health measures appropriate for the size and nature of the operation. The company has adequate fire prevention and control capabilities and emergency response procedures.   The company has demonstrated strong civic responsibility in its support (financial and otherwise) of the local community. Its training programs target both employees and contractors: in 1997 and 1998 these programs recorded a total of 2000 participants. Employees made redundant following privatization were treated fairly and in accordance with the law.     The  is available from the InfoShop.       Host country location of environmental documents    Viktor Lenac offices    Martinscica Bay    Kostrena    Croatia       Date SPI sent to InfoShop    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).