Alpha Cement Open Joint Stock Company

completed

Summary Of Project Information (SPI)Project NameRussian Federation-Alpha Cement J.S.C.RegionEuropeSectorProject No007199Projected Board DateFebruary 15, 1996Company NameAlpha Cement J.S.C.Technical Partner and/or Major Shareholders Holderbank is the leading international cement company, with 1994 sales of about 50 million tons of cement and clinker. Alpha Capital Fund, established in 1992, is one of the largest Russian-managed investment funds, comprising more than one million shareholders. Parco, established in 1992, is a company formed by a group of professional managers formerly of the Gornozavodsk cement plant in the Ural regionProject Cost Including proposed IFC investment Project Cost: US$191.9 million IFC Investment: US$35 million IFC’s investment includes a Line of Credit of up to US$20 million, 50% of which will be designated for environmental improvement.Location of project and Description of site Alpha Cement J.S.C. (AC), a Russian company established in May 1994, has acquired equity stakes in eleven recently privatized cement companies. Perm, Russia (Ural Region) is the corporate headquarters of AC. AC’s subsidiary plants are in various regions in Russia: Plant Name Location Province (Region) Spasskcement Spassk-Dalniy Primorskiy Krai (Far East) Gornozavodsk Gornozavodsk Perm Oblast (Ural) Shurovo Kolomna Moscow Oblast (Central/Moscow) Volskcement Volsk Saratov Oblast (Volga) Nizhny Tagil Nizhny Tagil Sverdlovsk Oblast (Ural) Sukhoi Log Sukhoi Log Sverdlovsk Oblast (Ural) Lipetskcement Lipetsk Lipetsk Oblast (Central) Novoroscement Novorossisk Krasnodarskiy Krai (Black Sea) Topkinski Topki Kemerovo Oblast (Siberia) Nevianski Neviansk Sverdlovsk Oblast (Ural) Zhigulevski Toliatti Samara Oblast (Volga) Description of Company and Purpose of Project      Purpose: To assist Ac to consolidate its position in the more promising Russian regional cement markets, improve operations of its subsidiaries, secure long-term capital growth, and to address environmental deficiencies at some of its subsidiaries.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental issues associated with the project include air emissions, liquid effluents, spill prevention, solid wastes, protection of water resources, land use and quarry reclamation. Occupational health and safety issues include fire prevention, and employee protection from noise and dust. Environmental, health and safety audits have been conducted at selected existing facilities, and Corrective Action Plans (CAPS) will be established to upgrade the existing facilities, as required, to meet the World Bank guidelines. An environmental audit was conducted by an independent western consulting firm.The is February 2, 1996 from the Public Information Center.Date SPI sent to PIC February 1, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).