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ork supporting this report was carried out during visits to CORNAP, CONAZUCAR and IVJ during April, May and June 1. Technical evaluations of -1 IVJ agriculture and factory operations were performed by industry experts contracted by PW/IPG. Assessment of legal issues relating to the potential privatization of the sugar company (still in progress) is being performed by the CONAZUCAR Legal Advisor. The operating and financial projections included in this report are based on presentations made by IVJ and CONAZUCAR management. Asset valuations were prepared by the industry experts contracted by PW/IPG and by local Nicaraguan valuation consultants. Readers of the report should consider that statements, estimates, and projections provided by IVJ reflect assumptions concerning future results that may or may not prove to be correct. Certain results will depend on decisions resulting from future negotiations with sugar industry workers and potential investors that are not known at this time. The contents of this report are the result of our inspections of the sugar company, the review of IVJ documents and industry statistics, numerous and extensive interviews with IVJ management, agriculture, factory and administrative personnel; CONAZUCAR management, financial, technical, and marketing personnel, CORNAP management and others. PW/IPG would like to thank all those that assisted us during this project. 1-2 II. WORLD SUGAR MARKET This section of the report provides background information on world sugar production, consumption, international trade and prices. . World Production According to statistics published by the .. Department of Agriculture (USDA), world sugar production is approximately 1 million metric tons (MT) per year. The production statistics of the largest producers in the world, and the Latin American and Caribbean region (LAC), are illustrated in the following table: World Sugar Production -1/9 (MM MT) % EEC 1.5 1 India 1