The project sponsor is HeidelbergCement AG (HC) of Germany. HC, listed on the Frankfurt Stock Exchange, is one of the world’s largest manufacturers of cement, concrete, and other building materials and a global market leader in aggregates with operations in more than 40 countries. It is 25.34% owned by Mr. Ludwig Merckle, a German business executive, and the balance is the free float.

CILU is 85% owned by HC’s subsidiaries and the balance by the government of the DRC. Through this transaction, IFC is expected to have a shareholding of up to 16%.

The Project is estimated to cost US$80 million. It has been proposed that IFC make an equity investment of up to US$22 million.

22.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	22.0

* These investment figures are indicative

CILU, headquartered in Kinshasa, has an integrated cement plant in Lukala. It is strategically located near the main regional markets as well as limestone and clay reserves.

The Project is expected to have the following development impact: (i) access to reliable domestic supply of cement, substitute imports at a competitive price, and creation of a competitive domestic market along with IFC''s investments in two other greenfield projects; (ii) support housing and infrastructure development in the DRC; (iii) direct and indirect job creation and local capacity development through training; (iv) strong demonstration effect by encouraging other foreign investment as the country''s perceived risks will continue to diminish; (v) contribution to economic growth; and (vi) increased local supply chain development.

IFC''s expected additionality stems from its ability to provide (i) continued support to HC, an existing client, who is undertaking a significant project. IFC''s direct equity investment in CILU will provide HC with comfort as it values IFC''s political risk protection because of the perceived high country risks of the DRC; (ii) long-term financing to an entity in an IDA country and a fragile and conflict-affected country where such funds are not readily available and well-suited to the capital intensity and cyclically of the cement industry; and (iii) guidance to enable CILU to enhance its environmental and social performance.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - Occupational Injury: Frequency (per million man-hours)	Injury Incidence Ratio (Injuries per million man hours)		Not Available	Not Available	Not Available

This is a category B project according to IFC’s Environmental and Social Review Procedure given it is a brown field upgrade of an existing plant based on known technologies that will result in potential environmental impacts that can be mitigated by proven mitigation measures that are included in the project design. In addition, the upgrade will result in improvements in environmental performance of the plant allied to compliance with the requirements of the Performance Standards and the World Bank Group (WBG) Environmental Health and Safety (EHS) General and sector specific Guidelines. The project will be undertaken within the confines of the existing cement plant, and the quarry operations will be undertaken within land under the company’s control.



No additional land is required for the project and there will be no resettlement or economic displacement; thus PS5: Land Acquisition and Involuntary Resettlement does not apply. For this reason and given the land itself and the surrounding areas and the immediate surroundings are not host to any endangered or threatened species of flora or fauna, PS 6: Biodiversity Conservation and Natural Resource Management does not apply. There are no indigenous peoples in the area and thus PS7: Indigenous Peoples does not apply and equally PS8 Cultural Heritage also does not apply given the areas is largely already developed.



Key issues to be addressed relate to (i) improvements in environmental and social management systems to align with HeidelbergCement’s standards and those of the Performance Standards; (ii) labor and working conditions and notably occupational health and safety (OHS) during both construction and operations; (iii) emissions controls, and solid and liquid waste management; (iv) quarry management and effective rehabilitation of this area; and (v) community health and safety. To address these issues, project specific management plans will be introduced allied to specific actions also defined in the environmental and social action plan (ESAP).

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.