Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Ecuador
Location: Provinces of Esmeraldas and Los Rios
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.
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Inter-American Investment Corporation (IIC)
Bank Risk Rating: U
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.
Board Decision Date: 2017-01-31
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 or Client: Grupo Oleana
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Agriculture and Forestry
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.

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Primary Source

Original disclosure @ IIC website
Updated in EWS: 2017-11-03
Disclosure Date: 2017-01-31
OLEANA
IIC-11907-03

Project Description
Oleana is in the process of expanding its operations, including: (a) the construction, operation and maintenance of a new refinery; (b) expand the extraction operation for palm crude oil (CPO) and palm kernel oil (PKO); (c) provide refinancing of existing financial debt and soft finance costs of the Project and (d) support permanent working capital needs. Environmental Review: Overview of Scope of IIC E&S Review The Inter-American Investment Corporation (IIC) and the Netherlands Development Finance Company (FMO) teams carried out an initial due diligence of the project between August 22 - 26, 2016 and the environmental and social due diligence took place between September 12-16, with the support of Arcadis, an environmental consulting firm. The assessment was made based on the review of information from primary and secondary sources against IFC Performance Standards (PS). Specifically, the IIC reviewed the different Environmental and Social Impact Assessment (ESIA) reports and Fichas Ambientales (environmental files), internal official documents about Oleana’s policies and procedures, and carried out on-site visits to plantations and operations, and interviews with stakeholders inside and outside Oleana (managers, workers, suppliers and neighbors of Oleana’s premises). Environmental and Social Categorization and Rationale This is a Category A project according to the IIC’s Environmental and Social Sustainability Policy because it could result in potentially significant and diverse environmental and social impacts. Environmental and Social Context Sudavesa is located in the vicinity of the town of Tachina, Province of Esmeraldas. At present the town has a population of 4,600 inhabitants who dedicate their efforts to agriculture, fishing and livestock as well as labor force for the city of Esmeraldas. Las Golondrinas is also located in Esmeraldas Province but near the town of Simón Bolívar. There are around 2,700 inhabitants currently in the town and the majority of the population is engaged in agriculture (palm, cocoa, passion fruit, banana, cassava and other crops). The population also depends on the employment generated by the companies La Sexta, Palmeras de los Andes and Botrosa. Extracosta is located in the town of Pueblo Viejo, Los Ríos Province. Pueblo Viejo region is the main producer of bananas in the province of Los Ríos, but it also produces cacao, tropical fruits, coffee and short cycle products such as rice, corn, soy, and tomato.
Investment Description
Financing Requested: US$11,100,000
Contact Information
For inquiries and comments to IIC, contact: IIC’s Communications Group E-mail: divulgacionpublica@iadb.org For project inquiries, including environmental and social questions related to an IIC investment, please contact the client or the IIC using the contact information provided above. In addition, project affected communities have access to the IIC Independent Consultation and Investigation Mechanism. Tel:+1 (202) 623-3952 Fax: +1 (202) 312-4057 Address: 1300 New York Ave. NW Washington, DC. USA. 20577 E-mail: mecanismo@iadb.org or MICI@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).
Bank Documents