EGIC Pipes

complete

The EBRD is considering providing a loan of up to US$ 25 million to the Egyptian German Company for Construction Industries (“EGIC”) to finance capacity expansion in Egypt. The transition impact of the project is primarily derived from setting standards for corporate governance and business conduct through: EGIC is a significant player in the Egyptian plastic pipe market; it manufactures sanitary pipes with a wide product range including polypropylene, PVC and polyethylene pipes for water supply, drainage and gas supply usages. The company’s production has been mainly targeting the domestic market, which is expected to change with the acquisition in Turkey that will open a large number of export markets to EGIC. EBRD is considering providing a long-term secured senior loan of up to US$25 million. Up to US$25 million. Category B. Potential environmental and social issues and risks associated with this project will be assessed, such as land acquisition, construction and the safety of the manufacturing process and products. Environmental and social appraisal will cover the two major components of this project, that is, the Egyptian expansion project and the acquisition of the Turkish company. For the expansion project at 6th of October, due diligence will involve an audit of existing operations and an appraisal of the proposed expansion project. For the acquisition component, an environmental and social audit of the acquisition target company’s operations and EHSS management systems is required. None.