Company name
ISA Participações S.A., Metminas Participações e Empreendimentos Ltda., JM Participações Ltda, SAMOR Administração e Participações Ltda., Vivan Moraes e Filhos Participações Ltda. e Garan Participaçõe
Project number
BR1114A-01
N/A
E&S category
N/A
Country

Brazil
Sector

Manufacturing
Status
Completed
Disclosed date
03/20/2002
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
04/24/2002
Approval date
04/24/2002
Signed date
N/A
Sponsoring entity
N/A
Investment Operations Department Contact
Portfolio Management Division
Investment type
Syndicated amount
N/A
Financing amount
N/A
Currency
USD
Project scope and objective
ALE is a 100% Brazilian-owned company engaged in the fuel distribution business since 1996. The ALE project (the "Project") consists of expanding the company's fuel distribution network, which is composed of small and medium-size enterprises that operate gas stations. This expansion will be implemented by acquiring or building 310 environmentally audited gas stations in six different states: Minas Gerais, Goiás, Paraná, Espírito Santo, São Paulo and Rio de Janeiro. A significant portion of the project will take place in the interior of all these states, thus fostering the decentralization of economic activities in Brazil. The total cost of the Project, to be developed over three years, is approximately US$33.7 million. Once completed in 2004, the expansion project will have generated approximately 2,000 jobs.
IIC funds will finance three key developmental components of the project. The first component is the US$2.8 million amount of the project cost associated with environmental protection. This amount covers (i) obtaining the environmental licenses for the new and existing gas stations, surveys and cleanup of potentially contaminated soil or ground water; and (ii) upgrading (i.e., replacement of old underground fuel tanks) of existing gas stations and improvements in leak detection, spill containment, and pollution prevention devices.
Second, IIC financing will also be used for the expansion of ALE's network in the interior of Minas Gerais, Goiás, Espirito Santo, and Paraná, at a total cost of US$8.5 million. Eighty-five gas stations out of the total 310 will be added to ALE's network within the interior of these four states according to the following schedule: 36 new gas stations in 2002, 26 in 2003, and an additional 23 in 2004.
Third, the IIC will lend up to US$800,000 to ALE for onlending to small and medium-size companies that will enter into contractual agreements with ALE to operate eligible gas stations. This innovative approach will benefit approximately forty new small or medium-size companies during a four-year period. The credit risk of US$800,000 will be borne by ALE.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesFor inquiries, comments and information requests about the project
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Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW
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