OC Egypt

completed

OCI Construction Group provides international engineering and construction services primarily on infrastructure, industrial and high-end commercial projects in Europe, the Middle East and North Africa for public and private clients. OCI Construction Group is comprised of (i) OCI and Orascom Construction (“OC” or “the company”) with core markets Egypt, Algeria, Saudi Arabia, Abu Dhabi and Iraq, (ii) Besix, a Belgium based construction company in which OCI owns 50% and core markets are Gulf Council Countries, select African & European markets, and (iii) Contrack, a US based wholly owned subsidiary of OCI mainly active in construction in Afghanistan and Qatar. OCI is currently restructuring the group by demerging its operations into two legally independent entities: (i) a fertilizers company to own and manage the fertilizers-related companies under the existing entity-OCI; and (ii) a construction company which would be fully dedicated to own and manage the construction-related part of the business. All OCI current policies and procedures as well as track-record will move to Orascom Construction (OC). OCI filed for the restructuring in Jan. 2012 and at time of appraisal is still waiting for clearance from the relevant national authorities. At the time of appraisal, OCI / OC is the construction contractor on around 56 active construction projects (50 in Egypt , 5 in Algeria and one in UAE). The Groups consolidated backlog is roughly distributed as follows: 60% infrastructure, 30% commercial and 10% industrial construction. Key projects include new power plant construction and existing plant upgrades, water and wastewater infrastructure improvements and new residential developments, transportation upgrades (roads and metro) and general building construction and civil engineering projects. IFC’s proposed investment is to support OC’s working capital needs over the course of the next three years through a revolving loan facility.