WASHINGTON, D.C.,/ALGIERS, June, 30, 2004
– The International Finance Corporation, the private sector arm of the World Bank Group, announced today a $10 million loan for its own account to help finance the expansion of Algerian Cement Company (ACC), the country’s first private cement plant.
IFC’s investment underlines its support for Algeria’s ongoing transition to an open, private sector-led market economy; IFC supported the construction of ACC, which is located in the central province of M'Sila, 240 km southeast of Algiers, with a loan of $35 million for its own account in 2002.
Sami Haddad, IFC Director for Middle East and North Africa, said, "IFC's presence in this project further demonstrates its support for the efforts of the government of Algeria to attract FDI into the non-hydrocarbons sector, which is vital for the generation of much needed private sector wealth and job creation.” He added, "IFC’s latest investment in ACC will also help decrease Algeria’s reliance on cement imports and benefit its infrastructure development, and help spur the construction sector - all of which are critical to the overall development of Algeria.”
The expansion of ACC, at an estimated cost of $187 million, will increase its total annual cement production capacity from 2 million tons to 4 million tons. It will be partly financed ($37 million) by the owner of ACC - Orascom Construction Industries, Egypt's largest private sector construction company. Another $37 million will come from earnings generated by the existing production facilities at ACC. The rest of the financing will be provided by the same consortium of lenders that supported the construction of ACC’s first production line. These include Citibank International, the European Investment Bank, Deutsche Investitions und Entwicklungsgesellschaft (DEG), Caisse Nationale d'Epargne et de Prévoyance, and Citibank Algeria. Loans from Citibank International and EIB will both be guaranteed by Eksport Kredit Fonden, the Danish export credit agency.
The mission of IFC (
www.ifc.org
) 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, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
Note to Editors:
for background information on IFC’s investment in Algeria Cement Company in 2002, see:
IFC Supports Construction of Algerian Cement Plant
