Ibb, Yemen, January 7, 2003—The International Finance Corporation has signed an agreement to provide a loan up to US$1.5 million to Yemeni manufacturer, Al-Ahlia Mineral Water Company (Al-Ahlia), to modernize and upgrade the existing facilities of a mineral water bottling plant.

The modernization will involve installing a PolyEthylene Terephthalate (PET) bottle stretch blow moulding machine and PET bottle and polyethylene (PE) bag packing facilities.

The $4.5 million project, which is located in Ibb, Yemen, will have a strong developmental impact, creating up to 100 skilled and semi-skilled jobs. It will also help ensure company adherence to World Bank Group environmental guidelines on health and safety issues.

Mr. Sami Haddad, Director of IFC’s Middle East and North Africa Department, noted the positive impact of the project on the Yemen economy. "IFC’s investment in Al-Ahlia fits with our Yemen strategy, which includes promoting private business investment and increasing the supply of safe drinking water.”

IFC’s participation has been critical in completing the financing plan since long-term financing is not currently available in Yemen. IFC played a catalytic role by inviting The Islamic Corporation for the Development of the Private Sector (ICD), as a co-financier to the company. The Ahlia transaction is the first collaboration between IFC and ICD.

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. Since its founding in 1956 through FY02, IFC committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.