NCCL is a stand-alone company which forms part of the Devki group of companies (“Devki” or the “Group”) which comprises five Kenya-based entities operating in the steel, cement and services sectors and two companies based in the Democratic Republic of Congo producing steel and copper. Devki was established in 1986 by Mr. Narendra Rameshchandra Raval, EBS, as a steel and trading company.

The total project cost is estimated at US$188 million.

IFC is considering an investment for its own account, including debt and equity, of up to US$74 million. In addition, IFC would mobilize up to US$22 million through a B loan.

70.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	55.0
Equity	15.0

* These investment figures are indicative

The grinding plant (first phase of expansion) is located at Athi River, 40 km south of Nairobi, Kenya’s capital, while the new clinker production line (second phase of expansion) will be built at Merueshi, c.160 km south of Nairobi, near the Nairobi-Mombasa highway.

Employment generation:
- the project will create direct and indirect employment;
- the project will provide skilled and unskilled jobs during the construction phase;
- the project will create temporary jobs during construction;
- the project is expected to add permanent jobs at the NCCL facilities; and
- the project will create a large number of indirect jobs in the transportation and delivery sectors.

Increased local supply chain and consumption of local goods and services:
- the project will create new business opportunities in the local economy due to increased demand for the supply of raw materials and delivery services. In particular, it will benefit those small and medium enterprises engaged in transporting the company''s raw materials and products in their own trucks and providing maintenance and general services to the company; and
- the communities close to the plant will benefit as they will provide local services and supplies to the plant and its employees.

Other benefits to local communities:
- the local communities will benefit from the company''s corporate social responsibility initiatives including the development of community infrastructure and the establishment of a scholarship fund.

Environmental and social performance:
- by complying with IFC''s performance standards and the World Bank Group''s environmental, health and safety (EHS) standards, the company will achieve higher environmental and social standards, which should increase its reputation, reduce the risk of adverse impacts on local communities, and increase the credibility of the private sector with respect to corporate social responsibility.

Private sector development:
- the success of the project will send a positive signal to other investors considering investments in Kenya; and
- the project is expected to set environmental and social standards that can be replicated by other cement producers.

Long-term partnership:
- the company is keen to develop a strong relationship with IFC as it values IFC''s long-term financing, which is suited to the capital intensity and cyclicality of the cement industry, to support projects in emerging markets;
- the company believes that IFC''s decision to support the company''s project after IFC''s comprehensive review of the project''s technical, environmental and social aspects would demonstrate IFC''s confidence in the viability of the project; and
- the company would like IFC, based on its global cement sector knowledge and expertise, to advise the company on all aspects of the investment from construction and implementation to operational matters to ensure the project''s successful implementation and operation across economic cycles.

Environmental and social standards/implementation and various advisory services:
- the company is seeking to integrate sustainable development into its business strategies and operations and it seeks strong financial performance with an equally strong commitment to social and environmental responsibility. In this context, the company believes that IFC can play a significant role in helping the company achieve these goals and would appreciate IFC''s stamp of approval;
- IFC, unlike commercial lenders, has global expertise and cement industry knowledge to provide the company with guidance on setting and implementing higher standards. IFC will work with the company to identify resource efficiency opportunities; and
- IFC can provide the company with various advisory services in areas such as environmental and social (E&S) management systems capacity-building, corporate social responsibility initiatives and corporate governance enhancement.

This is a Category A project according to IFC’s Policy on Environmental and Social Sustainability because the project has the potential for resulting in significant adverse impact on the surrounding landscape and may have adverse impacts on the biodiversity of the area.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.