Karbala Cement Manufacturing Limited

completed

The project entails a loan to support development of Lafarge’s 2.3 million ton per annum (mtpa) cement plant located near Karbala, Iraq. This is a follow-on investment to an investment IFC made in 2010 to support development of two cement plants in Iraq by Lafarge, including the one located near Karbala.The Karbala plant was in a state of deterioration in 2010 when the initial lease was negotiated between Lafarge and the Iraqi authorities for acquisition of the plant. More specifically, the plant required substantial technical rehabilitation to comply with national and IFC requirements. As a result of the overall project implementation, to date kiln line No. 2 has been fully rehabilitated to comply with modern environmental and energy efficiency standards, except for a cooler filter that will be changed so as to act as a joint unit between lines No. 1 and No.2. Kiln line No. 1 now closed and in the process of being rehabilitated to also align with modern environmental and energy efficiency standards. IFC’s follow-on investment will be used to complete the rehabilitation of this kiln, and replace the joint cooler filter. The rehabilitation work is being undertaken jointly by the original equipment supplier Polysius and Sinoma, an experienced Chinese EPC contractor.