Ingenio Montelimar (IFC-32253)

Countries
  • Nicaragua
Where the impacts of the investment may be experienced.
Specific Location
San Rafael del Sur
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 27, 2013
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Consorcio Naviero de Nicaragua S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 38.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Dec 13, 2018

Disclosed by Bank Mar 6, 2013


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Project Description

According to the bank, this Project involves an increase in CONSORCIO NAVIERO NICARAGUENSE SA (Navinic)'s annual sugar production at Ingenio Montelimar - owned by NAVINIC since 2000 and the smallest of the four active sugar mills in Nicaragua, from 33kton to 67kton. The Project includes:
i) the acquisition of 1,628 ha of land to increase own planted area to 5,262 ha,
ii) investment in irrigation and other infrastructure in the field,
iii) increasing milling capacity to 4,100 tcd,
iv) acquiring additional harvesting and transportation equipment and
iv) funding incremental working capital needs.

The increased scale of operations will allow for the installation of a high pressure boiler and supplemental cogeneration plant in 2-3 years with resulting increases in the sale of biomass-generated electric energy to the national grid.

 

Investment Description
  • International Finance Corporation (IFC)
Private Actors

CONSORCIO NAVIERO NICARAGUENSE SA (NAVINIC)'s majority shareholders and Project sponsors are the Fernandez Holmann and Morales families.

CONSORCIO NAVIERO NICARAGUENSE SA (NAVINIC): owns the smallest of four sugar mills in Nicaragua (Montelimar mill), with a milling capacity of 2,300 tons of sugar cane per day ("tcd").

PAST HUMAN RIGHTS ABUSES:

The IFC's Compliance Advisor Ombudsman has received a complaint from sugarcane workers at another Nicaraguan sugar company regarding the epidemic of chronic kidney disease that affects many agricultural workers along the Pacific coast of Central America.

Contact Information

San Rafael del Sur City Hall
Located on the West side
of the San Rafael del Sur Central Park
Tel: +505 2293 3284; +505 2293-3542

San Rafael del Sur Public Library
Located on the Southern side
of the San Rafael del Sur Central Park
Tel: +505 2293 3284

Ingenio Montelimar
Km 62 Carretera a Montelimar
San Rafael del Sur, Nicaragua
Tel: (505) 2269-6136
Fax: (505) 2269-6546

Ingenio Montelimar Managua Offices
Optica Nicaraguense, 3c al Este
Bolonia, Managua
Tel: + 505 2266-9776

Oscar Gutierrez: mailto:ogg@navinic.com.ni
Gerente Administrativo

Jose Luis Lopez: mailto:jlopez@navinic.com.ni
Coordinador Gestion de la Calidad y Relaciones Publicas
NAVINIC-Ingenio Montelimar
Telefonos: (505)2269-6516 | (505)2269-6136
Fax : (505)2269-6546

CONSULTATION PROCESS

The company's previous community engagement activities have been somewhat informal and ad hoc. Going forward they will formalize the process and take the actions outlined above and in the ESAP to develop and implement a Stakeholder Engagement Plan as well as engagement with households that are affected by land acquisition, and those households on their farms they have been helping obtain title. As per the Environmental and Social Action Plan, the company will develop a community grievance mechanism that may be used by the community to express concerns about the company's operations and impacts and also serve as a communications channel for consumers to advise the company of concerns about company products.

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/