SEF Durres Cement

completed

Summary Of Project Information (SPI)Project NameAlbania-SEF Durres Cement     RegionEuropeSectorProject No009216Projected Board DateOctober 30, 1998Company NameEurotech Cement     Technical Partner and/or Major Shareholders The project sponsor is Eurotech Cement shpk., owned 85% by Halyps and 15% by Miralb Shpk. Halyps is a 94% Greek subsidiary of Ciments Francais, one of the biggest cement producers in the world.Project Cost Including Proposed IFC Investment The project cost is estimated at US$3.5 million. The proposed IFC investment is a loan of US$1.2 million.Location of Project and Description of Site The new cement bagging terminal is three kilometers from the port of Durres, located 35 kilommeters west of Tirana.      Description of Company and Purpose of Project The project comprises construction and equipping of a new cement bagging terminal, which will include two storage silos and a cement bagging unit. The bagged and bulk cement will be primarily sold on the domestic market. IFC''s role in the project will include providing long-term financing to the Company in an environment, where private banks are undercapitalized and do not have the capacity to meet companies'' long-term financing needs. Investment in this project will send a powerful signal to other lending institutions about investment opportunities in Albania. IFC will also be providing technical assistance through its review and suggestions in evaluating project design and cost structure. In addition, the project is expected to have a positive developmental impact. It will create 40 new direct jobs and raise skill levels since no other production facility in Albania uses the modern technology, which the company intends to use. Durres Cement will also contribute to the development of distribution, wholesale and retail chains in the Durres/Tirana corridor, increase competition in the construction materials market, and benefit customers from improved product quality for, possibly, lower price.      Environmental Category and Issues This is a category B project according to IFC''s environmental review procedures. Air emissions will be controlled by dust collectors. The wastewater will be discharged to the municipal sewage system, and health and safety measures will be properly handled. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Albania''s requirements and World Bank policies and environmental, health and safety guidelines. IFC will monitor Company''s ongoing compliance with the World Bank policies and guidelines during the life of the project.     The is from the Public Information Center.Date SPI sent to InfoShop September 30, 1998“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384\\StreetTalk\Public@Network@IFC\PIC\als09216.docSeptember 30, 1998 7:35 PMEnvironmental 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).