Company name

Demerara Bakery Inc. and River Quest Inc.

Project number

12481-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Guyana

Sector

Agribusiness

Status

Inactive

Disclosed date

03/29/2019

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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11/08/2019

Approval date

N/A

Signed date

N/A

Sponsoring entity

N/A

Team leader

Navarrete, Monica

Investment type

Financing requested

N/A

Syndicated amount

N/A

Financing amount

USD $ 2,250,000

Currency

USD

Project scope and objective

The proposed transaction consists of a senior loan of up to US$2.25 million to be provided to Demerara Bakery Inc. ("Demerara" or "DBI") and River Quest Inc. ("River"), with a ternor of up to ten years, including 18 months grace period (the "Loan"). The loan will finance the construction of a modern bakery and distritubion outlet in Georgetown to supplement Demerara's main operations at Land of Canaan EBD. This new building will house a mini bakery and a cafe and patry shop serving specialized baked products. In addition, it will finance the acquisition of equipment to conduct research and development to introduce the new specialized baked goods to the market, that will ensure compliance with environmental and social occupational health & safety, and ISO food safety standards. The total investment plan will cost US$4.2 million. The project will increase production capacity, improve product quality and overall cost savings with technological improvements to speed up processing time and gain economies of scale.



Demerara was founded in 2014 by the Abai family, which is a long-time business entrepreneur from Guyana, and it was established to produce, process and commercialize bakery goods of the highest quality at affordable prices. After only a few years in operation, this company has become a household name in the country, providing wholesome, healthy and preservative free products to people across all regions in Guyana. At present, Demerara has one outlet and six distribution trucks that distribute baked products around Georgetown and its outskirts to supermarkets, mom-and-pop shops, caterers, and other retailers. 



River provides public and special hire river transportation services to the riverain areas of the Essequibo region, providing to mining, tourism and other business concerns and individual travelers, playing an important role in river transportation in Guyana´s vast interior regions, being fast, safe and reliable. River has been in operation since 2007 and currently operates three aluminum internal propulsion jet boats, each with capacity of 31 persons.


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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. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

54.7 Kb

Client files

This section provides the key environmental and social assessment documents produced by the client for this project.

DEMERARA-ENVIRONMENTAL AND SOCIAL ACTION PLAN.PDF

145.1 Kb

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Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

N/A

POSITION

N/A

PHONE NUMBER

+592 266 5846

EMAIL

ceo@demerarabakery.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices