Environmental Review Summary
Project Number
23237
Company Name
Obajana Cement PLC
Date ERS Disclosed
Jan 28, 2005
Country
Nigeria
Region
Africa
Date Revised ERS Disclosed
Apr 21, 2005
Environmental Category
A - Significant
Status
Completed
Previous Events
Approved : May 5, 2005
Signed : Jun 16, 2005
Invested : Mar 1, 2006
Sector
Gas - Thermal Power Generation
Industry
other
Department
Regional Industry - MAS Africa
Project Description
The Obajana Cement Project (OCP) involves the construction and operation of a greenfield cement plant at Obajana, Kogi State, 220 km southwest of Abuja, the Nigerian capital. The project will have a combined production capacity of 4.4 million metric tonnes per annum (mtpa) and includes a 135 MW captive gas power plant; a 94 km gas pipeline; a limestone quarry with associated 7.5 km conveyor belt; a 13m high dam impounding a reservoir with a total storage capacity of 5.1 million m3 and a 328 unit housing complex for non-local staff. The estimated project cost is $798 million, to be financed with sponsor''s equity of $319 million (40% of the Project''s capitalization) and $479million in form of long-term debt from local and international lenders. The Sponsor is Dangote Industries Ltd (“DIL”), a leading Nigerian manufacturing and trading company. The project represents their first venture into cement production. Project implementation started in 2003 and commissioning is expected in 2005.
