Al Jazeera agricultural company

Location:

Jordan

Project number:

46870

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

22 Jul 2015

Status:

Repaying

PSD disclosed:

22 Jun 2015

Translated version of this PSD: Arabic

Project Description

The EBRD is considering a long term loan of up to JOD 15 million (USD 21 million equivalent) to support the Company’s expansion programme. This will include expansion of the feed mill and silos, the retail segment, new energy efficient heat exchangers as well as the financing of permanent working capital.

Transition Impact

The Bank’s financing will support market expansion as planned capex investments will lead to an increased offer of competitive high quality fresh and frozen chicken leading to forward linkages to consumers who will benefit from access to safer and more hygienic poultry meat.This will demonstrate the success of a local producer promoting a quality brand and hence create more value for the Jordanian poultry sector.

Also, as part of the Project, the Company will invest in new heat exchangers for its poultry farms and in so doing reduce fuel consumption by 30% per year. This in itself will demonstrate sound business conduct.

The Client

Al Jazeera Agricultural Company is one of the largest poultry integrators in Jordan currently employing around 700 people. 67% is owned by the Al Husseini family and 33% by Standard Chartered Private Equity.

EBRD Finance

Up to JOD 15 million term loan.

Project Cost

Up to USD 65 million

Environmental and social categorisation, impact, and mitigation

Categorised B (2014). The ESDD showed that the Company is in compliance with the national EHS requirements. It also verified that the Project will result in several environmental and social improvements to further align Al Jazeera Group with the PRs of the EBRD including compliance with relevant EU directives and standards.

All JG projects were assessed in ESIAs under Jordanian regulations (G/2003), latest of which was new Thgrat El Geb Poultry Farm, Mafraq Governorate, February 2015. The ESIA cover the risk assessment of supply chain issues, road safety, traffic safety, community health and safety, and operation phase.

An ESAP has been agreed with the Company including: employment of a dedicated EHS Team for Al Jazeera Group to manage issues at a corporate level; acquiring ISO 14001 and OHSAS 18001 certification at corporate level and also at facilities level; updating the HR Policy of the Group to include the development and enforcement of a transparent grievance mechanism for both Groups’ operations and also for Al Jazeera workers. The Company is required to provide annual environmental and social reporting on the implementation of the ESAP.

Technical Cooperation

None.

Company Contact

Al-Jazeera Agriculture Company
Phone: + 962 6 5865682
Fax: + 962 6 5865942
P.O. Box:1604 Amman 11821 Jordan
Email: jazeera@orange.jo

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