Metro

completed

The proposed project is to provide term finance to the Mansour Group (the group) to finance the expansion of Metro Markets and the modernization of Siclam. The Mansour Group is a leading diversified private sector conglomerate rapidly expanding in the production and supply of consumer goods and services in Egypt. The group owns nine companies in the manufacturing and distribution sectors, collectively named Mansour Manufacturing and Distribution Companies. Total cost of the expansion and modernization program is estimated at US$48.0 million, with US$27.0 million for Metro Markets and US$21.0 million for Siclam. IFC has been requested to provide a loan of up to US$8 million (or a guarantee of local currency loan for the same amount) to Metro Markets and a loan of up to US$7 million (or a guarantee of local currency loan for the same amount) to Siclam. The Metro Market expansion would consist of construction (mainly internal finishing), equipping and stocking of 25 new stores by the end of 2005. The new stores would be located mainly in the greater Cairo area, Alexandria, the Delta Region, Hurgada, Sharm El Sheik, and other large cities where the demand for such facilities exists. The modernization and upgrading program of Siclam will include: (i) refurbishment of the old plant, (ii) installation of new bottling equipment for the production of pasteurized milk, yogurt, cheese and juice drinks, (iii) construction of a new laundry and cafeteria for the workers, (iii) acquisition of vehicles for sales and distribution departments, and (iv) installation of a new wastewater treatment plant. The new bottling equipment will increase the plant current capacity by almost 70% with daily production capacity of 100 tons of fresh pasteurized milk (in 1 liter and 250 cc sizes), 40 tons of juice drink (250 cc bottles), 8 tons of processed cheese, 10 tons of yogurt drink and 20 tons of yogurt (125gm, 150 gm and 170 gm packs). The products will be distributed through an established network of wholesalers and retailers and through the Group’s own retail chain Metro Markets.