IFC allocates $35 million to Algerian cement plant project
The International Finance Corporation (IFC), the private sector arm of the World Bank, will support the construction and operation of Algerian Cement Company (ACC), Algeria's first private sector cement plant, with up to $35 million in financing.
The investment in the ACC plant, located in the province of M'Sila in central Algeria, 240 kilometers southeast of Algiers, will consist of a loan of up to $35 million for IFC's own account. The project, estimated to cost $260 million for a total annual cement production capacity of two million tons, will use locally available raw materials and inexpensive energy sources to produce and distribute cement in the M'Sila and neighboring region.
Other funding sources for the project will come from the European Investment Bank (EIB) with a foreign currency loan of up to $55 million and Citibank Algeria leading a syndicate of local Algerian banks with local loans equivalent to up to $66 million. The EIB loan will be commercially guaranteed by Citibank International and Eksport Kredit Fonden (EkF), the Danish export credit agency.
The project's sponsor is Orascom Construction Industries (OCI), Egypt's largest private sector construction company, which will invest $104 million in the project. The investment in ACC reflects the sponsor's strategy of regional expansion and will strengthen its position as a key player in the Northern Africa and Mediterranean region. — (menareport.com)
© 2002 Mena Report (www.menareport.com)