Scancem Bangladesh Limited

completed

Summary Of Project Information (SPI)Project NameBangladesh - Scancem Bangladesh LimitedRegionSouth an Southeast AsiaSectorProject No009704Projected Board DateSeptember 13, 1999Company NameScancem Bangladesh Limited (SBL)Technical Partner and/or Major Shareholders Scancem International ANS (Scancem International) will own about 55% of Scancem Bangladesh Limited (SBL). Scancem International is a wholly-owned subsidiary of Scancem AB (Scancem) of Malmö, Sweden. Over 16% of the equity will be provided equally by two Bangladeshi partner companies and Union Cement Company, an integrated cement plant in the United Arab Emirates managed on a long-term basis by Scancem International. IFC will provide 8.2% of the equity and the remaining 20.5% of the equity will be provided by various Nordic development agencies.Project Cost Including proposed IFC investment US$49.5 million estimated project cost. IFC proposes an A-loan of US$10 million and equity of US$2.0 million.Location of Project and Description of site A clinker grinding plant will be constructed on 14 acres of riverside land in Kanchpur, an industrial area 15 km from the centre of Dhaka on the Shitalakkhya river. The site’s riverfront is 120 metres long. A jetty will be constructed for the inward movement of all raw materials. Some 15-20% of output is also expected to be carried by river barge, the remainder being transported by truck. Clinker will be imported into Bangladesh in voyage-chartered ocean-going bulk carriers of around 30,000 DWT in size and will be transferred to fully enclosed river vessels at the outer anchorage of the port of Chittagong. The river vessels, which will be time-chartered, will transport the clinker to the plant near Dhaka where it will be converted into cement, bagged and distributed.Description of Company and Purpose of ProjectThe project will enable SBL to supply high quality-cement to the country at competitive prices. SBL will bring to bear state-of-the-art technology; low cost, high quality raw materials; operational know-how; and superior management skills. At present, the Bangladeshi market is largely supplied by imports of bagged cement. There are no economically exploitable deposits of cement grade limestone in the country. The project will result in the regular supply of up to 680,000 tonnes of fresh cement of consistent quality to Bangladeshi consumers. Domestic competition in the cement industry will be intensified and the transportation and handling of a significant proportion of imported clinker will be made more efficient without burdening the country’s congested ports infrastructure.Environmental Category and Issues This is a category B project according to IFC''s environmental review procedure. Environmental and social issues of concern in this project included emission controls and site aspects related to existing residents. Adequate measures have been taken in project design to minimize dust emissions during handling, grinding and bagging. There are no wastewater emissions. Resettlement of site residents has been carried out in full compliance with World Bank Group policies and requirements.The and the Resettlement Plan are available from the Infoshop.Host country location of To be providedenvironmental documentsDate SPI sent to InfoShop August 13, 1999For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental 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).