Norgips Opole Sp. z.o.o.

completed

Summary Of Project Information (SPI)Project NamePoland-Norgips OpoleRegionEuropeSectorProject No007661Projected Board DateSeptember 10, 1996Company NameNorgips Opole Sp. z o.o.Technical Partner and/or Major Shareholders Norgips A/S (Norway), 66.7%; and Opole Power Plant SA (Poland), 33.3%. Norgips is a Norwegian producer of gypsum plasterboard, with technical expertise in building and managing plasterboard facilities, as well as marketing contacts throughout Europe. Opole Power Plant is a Polish state-owned power generator being required by the Polish Government to install flue gas desulphurization which will produce the gypsum supply.Project Cost Including proposed IFC investment Project Cost: $52.9 million equivalent. Proposed IFC investment to be comprised of: $13.0 million equivalent in DM-denominated senior and subordinated loans for IFC’s account; and $24.0 million in syndicated loans for the account of participant banks.Location of project and Description of site The project will be located nine kilometers north of the southwestern city of Opole. The 14 hectare site lies adjacent to the Opole Power Plant, and is already covered with concrete block.Description of Company and Purpose of Project The purpose will be to establish a modern gypsum plasterboard production facility with annual capacity up to 40 million square meters. The company’s sales will be directed 25% to the domestic market and 75% to the export markets (primarily Germany). The project will take advantage of the low-cost gypsum supplied by the power plant, together with overall lower operating and capacity costs than western European competitors.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental, occupational health and safety issues include potential contamination of the proposed site as a result of previous activities, air emissions, dust control and noise. The project will receive an indemnity from Opole Power Plant for any contamination identified at the site due to prior activities. Air emissions will include NOx, SO2 and CO, all of which will be within the limits permitted by the World Bank’s environmental guidelines. Similarly, workplace and ambient noise levels will be maintained in compliance with the Bank’s guidelines. The project will convert solid waste from the power plant’s flue gas desulphurization system (i.e., gypsum) into a useful product.The is July 31, 1996 from the Public Information Center. Date SPI sent to PIC July 29, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).