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