Washington D.C., June 25, 2002
—In its first petroleum storage and distribution project in Sub-Saharan Africa, the International Finance Corporation (IFC)—the private sector lending arm of the World Bank Group—will provide US$15 million in financing to a Kenyan company, Gapco Kenya Limited, based in Mombasa, Kenya.
The funds will be used to complete a $42 million project comprising of a 120,000 tonne fuel oil terminal and blending unit at Changamwe, near the port of Mombasa, and a 25,000 tonne condensate storage terminal at Shimanzi, Mombasa. The project will enable Gapco Kenya Limited to improve its competitiveness by enhancing customer service, lowering logistical costs, and leveraging the strategic location and size of its facilities to supply the region’s growing petroleum product market.
Founded in 1980, Gapco or the Gulf Africa Petroleum Corporation, was incorporated in Mauritius to purchase the assets of major oil companies in the region. In the mid-1990’s it acquired the assets of Esso and Caltex in Tanzania and Uganda. Now it operates throughout the landlocked Great Lakes region of Sub-Saharan Africa serving Rwanda, Burundi, the Democratic Republic of Congo, Zambia, and Malawi. In 1998, the company also purchased the assets of Italy’s Agip in Sudan.
Ms. Haydee Celaya, Director of IFC’s Sub-Saharan Africa Department, said, “IFC will provide long-term foreign currency financing which is currently unavailable in East Africa. The financing will enable a local business to expand regionally and position it to better compete with the major oil companies. The project will also improve the availability of fuel oil—a key input for power generation in the region.”
IFC’s mission is to promote sustainable private sector investment in developing countries, helping to 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. From its founding in 1956 through the close of the last fiscal year on June 30, 2001, IFC committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC’s committed portfolio at the end of FY01 was $14.3 billion.
