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 (www.ifc.org)
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.