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Southern Sudan Beverage Limited
Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 28458
Country
Sudan
RegionSub-Saharan Africa
SectorBreweries
Department
Company nameSouthern Sudan Beverage Limited
Environmental category:B
StatusHold
Date ESRS disclosedOctober 20, 2009
Local Disclosure DateOctober 20, 2009
View Summary of Proposed Investment (SPI), click here

OverviewCategory &

Applicable Standards
Key Issues

& Mitigation
Community/

Engagements
Client's

Documentation

Overview of IFC's scope of review
The review of this project consisted of appraising technical, environmental, social and safety information submitted by SSBL, including:

1. Review of SABMiller’s Sustainable Development Policy, Performance-based Priorities and Standard Operating Procedures (SOP) related to Environmental and Social Management and Occupational Health and Safety (OHS) as well as SSBL's Human Resources Policy; Beverage Quality Manual, issued by SABMiller, specifying the design criteria for the SSBL’s plant;
2. Assessment of supplemental information submitted by SSBL on key environmental and social assessment issues (Preliminary Environmental and Social Screening Study, March 2008; Memorandum of Understanding (MoU) on land lease agreement between Rejaf Payam of Central Equatoria State, the Tokiman Community of the Bari People and SSBL);
3. Meetings with GOSS’ Ministry of Water Resources and Irrigation, General Directorate of Environmental Affairs, and water and agriculture specialists of World Bank in Juba. Review of GOSS’s Acts and Regulations applicable to this transaction (e.g. Environmental Protection Bill, Investment Promotion Act);
4. Field visit to SSBL’s plant to assess existing production processes; EHS practices; water pumping station; power supply and fuel storage; and, liquid and solid waste management;
5. Meeting with SSBL’s management team to discuss IFC’s Performance Standards (PSs), Environmental, Health and Safety (EHS) general and sector guidelines for breweries and food and beverage processing (April 30, 2007) and other requirements.
Project description
Southern Sudan Beverages Limited (“SSBL” or the “Company”) is a newly established company that is majority owned by SAB Miller. The Company is in the final phase of completing its brewery in Southern Sudan.

The proceed of the loan to be provided by IFC shall be used to finance SSBL’s expansion program that includes: (i) construction, equipping and placing into operation of a soft drink facility, to be located within the existing premises of SSBL; (ii) a wastewater effluent treatment facility to be established within the existing premises of SSBL; (iii) the funding of the working capital requirements; and, (iv) debt refinancing (hereafter referred as the “Project”).

The main purpose of the Project is to meet the demand in the Southern Sudanese beverage sector, which is currently being met by imports from the neighboring countries, thereby resulting in significant foreign exchange savings, reduced retail prices due to local presence, and the development of local brands.

SAB Miller Plc is one of the largest beverage companies in the world. From an environmental and social standpoint, it has adopted, as part of its Sustainable Development Strategy, 10 performance-based priorities that relate to water use and efficiency, energy efficiency and carbon mitigation, waste reduction and recycling, reduction of HIV/AIDS, enterprise development in its value chain, communities development, human rights and transparency and ethics (www.sabmiller.com). For the past three years, SAB Miller has been using an internal management system, the Sustainability Assessment Matrix (SAM), to measure its operational performance which is being reported yearly through a scorecard system at Group and operations level. It is worthwhile to underline that SAB Miller has undertaken, in cooperation with WWF, an analysis of its water footprint for its beer production units and supply chains in South Africa and Czech Republic.

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