Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Guatemala
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: B
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: 2016-08-09
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: Agropecuaria El Siglo, S.A. ("El Siglo")
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 Amount (USD): $ 5.00 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): $ 10,450.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.

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Primary Source

Original disclosure @ IIC website
Updated in EWS: 2017-06-22
Disclosure Date: 2016-07-07
Agropecuaria El Siglo, S.A.
IIC-GU3829A-01

Project Description
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
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.
Contact Information
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).