WASHINGTON, D.C., November 5, 1999 —
The International Finance Corporation today signed an agreement to support use of environmentally friendly liquified petroleum gas (LPG) in Kazakhstan through loan of up to US$20 million to Alautransgas, a leading LPG distributor.
IFC's investment consists of a loan of $20 million with a conversion option of up to $2 million. Alautransgas will use the loan to refurbish transport and industrial equipment, tanks and cylinders, modernize eight regional gas distribution centers, and expand operations into three new regions of Kazakhstan.
As part of the project, the company will work with an international LPG distributor to raise safety features to World Bank Group standards, including investing in fire protection equipment, automatic alert systems and by instituting industry best-practice.
Mr. Mohsen Khalil, Regional Director of IFC's Central Asia Middle East and North Africa Department said that the project supports a modernization program that will more than double the company's LPG production and provide a reliable supply of LPG across the country. LPG is mainly used as a fuel for cooking. It is attractive to use because it is more convenient than other fuels and is cleaner than wood, coal or oil.
The mission of IFC, part of the World Bank Group, is to promote private sector investment in developing countries, which will reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
