Washington D.C., June 25, 2002—In its
first petroleum storage and distribution project in Sub-Saharan Africa,
the International Finance Corporation (IFC)—the private sector lending
arm of the World Bank Group—will provide US$15 million in financing to
a Kenyan company, Gapco Kenya Limited, based in Mombasa, Kenya.
The funds will be used to complete a $42 million project comprising of
a 120,000 tonne fuel oil terminal and blending unit at Changamwe, near
the port of Mombasa, and a 25,000 tonne condensate storage terminal at
Shimanzi, Mombasa. The project will enable Gapco Kenya Limited to
improve its competitiveness by enhancing customer service, lowering logistical
costs, and leveraging the strategic location and size of its facilities
to supply the region’s growing petroleum product market.
Founded in 1980, Gapco or the Gulf Africa Petroleum Corporation, was incorporated
in Mauritius to purchase the assets of major oil companies in the region.
In the mid-1990’s it acquired the assets of Esso and Caltex in Tanzania
and Uganda. Now it operates throughout the landlocked Great Lakes
region of Sub-Saharan Africa serving Rwanda, Burundi, the Democratic Republic
of Congo, Zambia, and Malawi. In 1998, the company also purchased
the assets of Italy’s Agip in Sudan.
Ms. Haydee Celaya, Director of IFC’s Sub-Saharan Africa Department, said,
“IFC will provide long-term foreign currency financing which is currently
unavailable in East Africa. The financing will enable a local business
to expand regionally and position it to better compete with the major oil
companies. The project will also improve the availability of fuel
oil—a key input for power generation in the region.”
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. From its founding
in 1956 through the close of the last fiscal year on June 30, 2001, IFC
committed more than $31 billion of its own funds and arranged $20 billion
in syndications for 2,636 companies in 140 developing countries. IFC’s
committed portfolio at the end of FY01 was $14.3 billion.