Company name
Sociedad Agrícola e Industrial San Carlos S.A. (“SAISC”)
Project number
EC3868A-02
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
B
Country
Ecuador
Sector
Agribusiness
Status
Completed
Disclosed date
02/01/2013
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
03/05/2013
Approval date
06/04/2013
Signed date
06/20/2013
Sponsoring entity
Not applicable
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
USD $ 9,000,000
Financing amount
USD $ 8,000,000
Currency
USD
Project scope and objective
The project entails: (i) boosting the existing cogeneration plant’s rated capacity to approximately 50 megawatts (MW); (ii) providing for the electrification of certain sugar production processes, such as grinding machines and turbine generators; and (iii) providing necessary infrastructure, including that used in the transport of bagasse as well as the requisite steam, water, and electrical systems. The estimated cost of the project is US$49 million. The IIC financing would consist of a loan of up to US$8 million.
This renewable energy project, fueled by sugarcane bagasse, would benefit from laws and regulations enacted by Ecuador’s government aimed at encouraging private-sector investment in clean energy generation. The project would not only result in significant advantages for SAISC, in terms of savings and income diversification not tied to the price of sugar, but also benefit Ecuador’s electric power sector. Once the project enters the operational phase, SAISC estimates it will be in a position to generate and sell as much as 130 million kilowatt hours of energy annually to third parties.
Founded in 1937, SAISC is an integrated sugar producer. It has a cogeneration plant and also produces and sells molasses and alcohol. SAISC controls approximately a third of Ecuador’s sugar market.
This would be the IIC’s second operation with SAISC. In 2010, the IIC approved and disbursed a loan of US$7 million to the company, which SAISC used to invest in fixed assets aimed at improving the efficiency of its processes and maintaining competitive production costs.
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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
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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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