Agropecuaria El Siglo, S.A. (IIC-GU3829A-01)

Countries
  • Guatemala
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 9, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Agropecuaria El Siglo, S.A. ("El Siglo")
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 5.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 10,450.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IIC website

Updated in EWS Aug 23, 2018

Disclosed by Bank Jul 7, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Inter-American Development Bank Invest (IDB Invest), formerly the Inter-American Investment Corporation (IIC), El Siglo is dedicated to planting, harvesting and commercializing bananas and plantains. Currently, El Siglo has 600 hectares of banana plantation and 200 hectares of plantain plantation, located on farms equipped with irrigation systems, aerial cable systems to transfer the fruit to the packing plants and four fruit packing plants. El Siglo's production is mainly sold to Compania Bananera Independiente S.A. ("Cobigua"), under the Chiquita brand, through long-term agreements. The objective of this operation is to finance the cultivation of 475 hectares of bananas to be sold to Cobigua through a long-term purchase agreement.

Both of the company’s plantations are located in an area of Guatemala dedicated to intensive, large-scale agriculture – primarily consisting of the cultivation of sugar cane, banana and plantain. The land for this project has a long history of previous agricultural uses, having been farmed by El Siglo’s owners successively for cotton, grains, corn, and most recently sugarcane. The plantation is surrounded on all sides by agricultural land without any abutting residences.

According to the IIC Environmental and Social Sustainability Policy, this is a Category B project: potential environmental and social risks and impacts are 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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The investment is a US$5 million loan. The total project cost is US$10,450 million, excluding the cost of land, since the latter will lease to a related company.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The IDB Invest notes the following description for the private actor on its webpage:"Currently, El Siglo has 600 hectares of banana plantation and 200 hectares of plantain plantation, located on farms equipped with irrigation systems, aerial cable systems to transfer the fruit to the packing plants and four fruit packing plants. The Company’s production is mainly sold to Compañía Bananera Independiente S.A. (“Cobigua”), under the Chiquita brand, through long-term agreements."

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Agropecuaria El Siglo, S.A. Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

For inquiries about this project, contact divulgacionpublica@iadb.org.

ACCOUNTABILITY MECHANISM OF IIC

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

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