OCI Group

completed

Orascom Construction Industries (“OCI”) is one of the largest construction groups in the Middle East and North Africa region. The Company is also a leading global nitrogen fertilizer producer and distributor. IFC’s proposed investment is to support OCI’s long term growth plans and operations as well as to extend the average life of the fertilizers Group’s debt financing through investment in OCI directly. IFC is also considering a possible additional direct investment in EFC (a subsidiary that is wholly owned by OCI). At the time of appraisal, OCI is the construction contractor on 38 active construction projects (35 in Egypt and 3 in Algeria). Key projects include new power plant construction and existing plant upgrades, water and wastewater infrastructure improvements and new developments, transportation upgrades (roads and metro) and general building construction and civil engineering projects. As part of the construction business, OCI also has operating companies involved with steel fabrication, piping and paint manufacture. In the nitrogen fertilizer business OCI has controlling ownership of two fertilizer plants and an ammonia export terminal in Egypt. The fertilizer plants include: EFC, which produces 1.3 million tons per annum (mtpa) of urea; and EBIC, which produces 0.7 mtpa of ammonia. Both of these fertilizer plants are adjacent to one another at the Ein Sokhna industrial site, 140km southeast of Cairo and adjacent to the Gulf of Suez. OCI is constructing a fertilizer production plant in Algeria (Sorfert) that will have the capacity to produce 0.8 mtpa of ammonia and 1.2 mtpa of urea. OCI will operate Sorfert under a joint venture with the Algerian state-owned oil and gas company, Sonatrach. The plant is located within the existing industrial zone of Arzew in the north west of the country and has been under construction since September 2007. It is expected to become operational in late 2011. In the Netherlands, OCI controls one nitrogen fertilizer production plant producing 1.15 mtpa of calcium ammonium nitrate(CAN), 0.45 mtpa of ammonia, 0.2 mtpa of UAN, , and 0.25 mtpa of melamine, as well as an ammonia storage terminal and a nitrogen distribution network. OCI’s planned nitrogenous fertilizer production capacity by 2012 is 7.45 mtpa.