Summary of Proposed Investment
Project Number
10314
Company Name
FME GAZ
Date SPI Disclosed
Jun 18, 2001
Country
Cameroon
Industry
Manufacturing
Projected Board Date
Jul 19, 2001
Status
Completed
Sector
Industrial Gases
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Jul 30, 2001
Signed : Oct 16, 2001
Invested : Dec 17, 2001
Project Description
The project involves the expansion of the production capacity of the company, which produces and distributes industrial gases (mainly oxygen and acetylene). The company was created in 1993 through the acquisition of the repackaging equipment for cooling gases of the local subsidiary of the German firm HOECHST. In 1993 HOECHST closed its activities in Cameroon and signed an exclusive representation contract for cooling gases with FME-GAZ. In 1995, the company diversified into the production of industrial gases in response to the increasing demand which CAMOA (Société Camerounaise d''Oxygène et d''Acétylène), a local subsidiary of the French AIR LIQUIDE Group, could not satisfy. The expansion entails the purchase and installation of the following equipment: (i) a second air separation plant for oxygen with a capacity of 30 m3/hour, bringing the total capacity to 45 m3/hour; (ii) the acquisition of some essential utilities (gas cylinders and trucks); and (iii) the expansion of the production facility to house the new oxygen unit and the construction of a loading plate-form.
IFC''s objective is to help provide financial resources channeled towards long term financing. Local banks dispose mainly of short term resources, and their ability for long term funding of investments is now severely constrained by implementation of tighter prudential regulations by COBAC. Investors are now turning to international financial institutions such as PROPARCO, FMO, DEG, IFC, etc.
The developmental impact resulting from the project includes: (i) contributing in improving competition in the local liquid gas industry, which has been dominated for many years by a single multinational firm: CAMOA of the French AIR LIQUIDE group . This company is present in most French speaking African countries as a monopoly. Cameroon is one of the rare countries where an indigenous firm has successfully established a business in the sector, and captured a share of the market; (ii) enabling IFC to implement its objective under the Chad-Cameroon SME initiative, to promote and increase an indigenous participation in sub-contracting activities in the Chad-Cameroon pipeline project; and (iii) creating 16 additional permanent jobs and save the existing ones, bringing the total up to 50.
IFC''s objective is to help provide financial resources channeled towards long term financing. Local banks dispose mainly of short term resources, and their ability for long term funding of investments is now severely constrained by implementation of tighter prudential regulations by COBAC. Investors are now turning to international financial institutions such as PROPARCO, FMO, DEG, IFC, etc.
The developmental impact resulting from the project includes: (i) contributing in improving competition in the local liquid gas industry, which has been dominated for many years by a single multinational firm: CAMOA of the French AIR LIQUIDE group . This company is present in most French speaking African countries as a monopoly. Cameroon is one of the rare countries where an indigenous firm has successfully established a business in the sector, and captured a share of the market; (ii) enabling IFC to implement its objective under the Chad-Cameroon SME initiative, to promote and increase an indigenous participation in sub-contracting activities in the Chad-Cameroon pipeline project; and (iii) creating 16 additional permanent jobs and save the existing ones, bringing the total up to 50.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
FME-GAZ Sarl
B.P. 13108 Douala, Cameroon
Phone: (237) 39 21 42
Fax: (237) 39 21 40
B.P. 13108 Douala, Cameroon
Phone: (237) 39 21 42
Fax: (237) 39 21 40