Hassan Allam 1

pending

Hassan Allam Holdings (”HAH”, or “the company”) is a leading construction company in Egypt. The company is currently undergoing a significant capital expenditure program to expand its construction equipment fleet and meet rapidly growing business needs. In addition, the company is also looking to diversify its activities by developing and taking partial ownership stakes in a select number of independent power projects in Egypt. IFC is considering supporting the company by making an investment of up to US$ 40 million, comprising up to US$ 20 million in senior debt and $20 million in equity/quasi-equity.Hassan Allam Construction (“H.A.C.”) is the main Holdings subsidiary and the source of almost all of the company’s revenues at present. Subsidiaries in Saudi Arabia and Algeria were established in 2011 and 2009 respectively. HAC is expanding rapidly, having nearly doubled in size in the past two years. HAC has a diverse backlog including roads, electric power plants, commercial buildings (e.g. malls), airports, wastewater treatment plants, transmission lines, industrial plants and facilities, residential buildings and public buildings. At the time of appraisal, HAC had 38 active and new projects in Egypt and an additional eight joint venture projects in that country. About 70 percent of Egyptian projects are in and around Cairo and the remainder scattered throughout the country. HAC is primarily a construction contractor; however, it is increasingly evolving into an engineering, procurement, and construction (EPC) company, with developing in-house design capabilities. HAC subcontracts certain aspects of its work including at times tiling, glasswork, some electromechanical work, and other specialty services. For some projects, HAC is also responsible for commissioning and then operation and maintenance. It is typical for HAC to procure subcontract support for such operation and maintenance. HAC has a number of divisions, subsidiaries and associates in Egypt, Saudi Arabia, and Algeria. In Egypt, associates include Arabian Concrete Roads (with a 49.9 percent share owned by HAC), National Pipes Company (40% owned), a Wood Workshop, Brick Factory, Aggregate Quarries and Steel Fabrication division. In Saudi Arabia, HAC currently has one active construction project in infrastructure. In Algeria, HAC has seven projects, including roads, petrochemicals, power, and infrastructure.HAH also established a number of subsidiaries recently: (1) H.A.C. Roads & Bridge is a contractor for roads & bridges, (2) 3S Ready Mix Concrete which started operations at the beginning of 2016 as a strategic arm to serve in-house and external demand of ready mix concrete, and (3) H.A.C. Technologies offering building technology and electromechanical contracting with a focus on commercial real estate. H.A.C. Technologies also provides system integration such as Intelligent Traffic Solutions, physical security solutions and smart package handling solutions, as well as Data Centre solutions.