Announcement of IFC Helps Finance Major Philippine Oil Palm Project on September 14, 1983

1818 H Street, NW. n International Finance Corporation Washington, D.C. 20433, U SA FOR RELEASE: September 14, 1983 CONTACT: Don Roessner . (202) 676-03~4 Pr,ssi-;:Release No. 84 / 3 IFC Helps Finance Major Philippine Oil Palm Project A major palm oil project in t,he Philippines is being undertaken with,, financing from the National Development 'Company of the Phi1ippines (NDC), l<umpulan Guthrie. Sendirian Berhad (KGSB), the Commonwealth Devel~\pment Corporation (CDC) and the International Finance Corporation (IFC). A joint ventur~ company, NOC-Guthrie Plantations Inc. (NGPI), has been formed.to implement the project. The project, on the islanp of Mindanao, involves the development of an integrated palm oil plantation of initially 8,000 acres with a furthe.r 8,00Q acres to be develop~d subsequently. The initial project includes construction of roads, housing, port facilities and a miJl to process about 95,000 metric tons a year of.palm fruit into 20,0_0Q u tons a year of crude palm oiL and 4,200 tons a year of kernels -- principally for export. The project, which will cost about $44.1 million, will be financed by equi.ty investments 'of $12 ·million equivalent by NOC and $8 ,mir'iion equivalent by 1 KGSB, and ;,~y loans of $11.2 million equivalent by CDC and $11 million by IFC. An additio,~al $1. 9 million in loans from other f;ources will complete ~he financial plan. The project is already well advanced and is expectP.d to be compl~ted in 1984. 0