INDUSTRY II CIMAO

closed

The Cimao Regional Clinker Project includes two complementary components: (a) an industrial complex comprising a dry clinker plant of an annual capacity of 1.2 million tons to be built at Tabligbo, about 65 km northeast of Lome; it will comprise the quarry, two clinker production lines, storage and rail facilities. (b) related infrastructure comprising: a railway line of about 80 km to connect the plant with the port of Lome, and railroad equipment; a rail/port terminal within the port of Lome; a power link and sub-station connecting the plant to the existing network; and a township. The project will provide for: (i) management and technical assistance to help CIMAO to achieve full capacity utilization rapidly; (ii) addition quarry equipment to prevent quarry operations from becoming a bottleneck (iii) spare parts and equipment to permit full plant operations and the carrying out of an adequate maintenance program; (iv) financing of fuel and (v) restoration of working capital to a healthy level. The project restores CIMAO's financial viability through provision of equity from shareholder Governments and long-term financing. Governments have agreed to set CIMAO's clinker prices according to an agreed price schedule until 1983 and will review prices periodically thereafter to maintain financial viability in the future. The restructuring measures are designed to help the company to reduce gradually clinker prices thereafter.