Washington, D.C., June 30, 2006—
The International Finance Corporation, the private sector arm of the World Bank Group, has signed a $35 million loan to National Cement Company in Yemen. IFC’s loan will support the construction of a greenfield cement plant at Al Anad, 70km north of Aden. The project will be one of the largest private sector investments in the country outside the oil sector.
The new plant will have an annual cement production capacity of 1.6 million tons and will include a 37.5 megawatt diesel-fired power plant.
Dimitris Tsitsiragos, IFC’s director for Global Manufacturing and Services, commented, “IFC’s financing will help increase the local availability of cement and hence promote further growth in major sectors of the economy, such as housing and infrastructure. In addition, the project will create close to 400 jobs and provide training opportunities.”
Michael Essex, IFC’s director for Middle East and North Africa, commented, “This is an excellent example of the role that IFC can play in promoting private sector-led growth in a critical segment of the Yemeni economy. The project is a landmark investment for Yemen and represents a large in-country investment by a local sponsor.”
National Cement Company is part of a group of businesses owned by the Hayel Saeed Anam family or HSA, a leading Yemeni group of industrial and trading companies. The project is strategic for HSA, as it represents HSA’s largest single greenfield project to date.
Abdul Gabbar Hayel Saeed, a board member of National Cement Company, added, “This project is a milestone for HSA as it is HSA’s first large investment in a capital-intensive industry in Yemen. In addition to providing financing, IFC has been our valued partner towards achieving high standards in technical, environmental, and social aspects of the project.”
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC (
) is to promote sustainable private sector investment in developing and transition 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.