Summary of Proposed Investment
Project Number
10371
Company Name
Algerian Cement Company
Date SPI Disclosed
Mar 29, 2002
Country
Algeria
Industry
Manufacturing
Projected Board Date
May 2, 2002
Status
Completed
Sector
Cement
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Jun 28, 2002
Signed : Nov 25, 2002
Invested : Apr 11, 2003
Project Description
- Description and Purpose:
The project is to construct and operate Algeria''s first private sector cement plant with total capacity of 2.0 million tons per year (tpy). The project company, Algerian Cement Company (ACC) will use locally available raw materials and inexpensive energy sources to produce and distribute cement in the M''Sila and neighboring region.
- Development Impact:
The benefits of the project to the economy arise from:
- tax revenues generated from the corporate tax levied on the company;
- employment generation and incremental earnings of labor - 1,800 semi- and un-skilled jobs will be created during the life of the project at a wage premium of 30% above the prevailing market wage; and
- consumer surplus resulting from the project’s ability to drive cement market prices down as low which will greatly benefit consumers who are presently paying high cement prices.
Moreover, the venture is expected to have substantial spill-over economic benefits, such as attracting other industries to M’Sila and helping create a more vibrant building materials and construction industry in the country.
- IFC''s Role:
First, IFC will provide long-term financing, which is unavailable in Algeria. Second, IFC has played a catalytic role in mobilizing financing and guarantees from other international as well as local financial institutions. Third, IFC will play a major developmental role by ensuring that the project meets World Bank environmental and safety guidelines. The investment will serve as a model in pollution and dust emission control in Algeria and will be the first cement plant in the country to meet the latest most stringent international environmental guidelines. Finally, IFC’s presence in a major project involving a foreign sponsor also supports the Algerian government’s efforts to attract foreign investment in the non-oil sectors.
The project is to construct and operate Algeria''s first private sector cement plant with total capacity of 2.0 million tons per year (tpy). The project company, Algerian Cement Company (ACC) will use locally available raw materials and inexpensive energy sources to produce and distribute cement in the M''Sila and neighboring region.
- Development Impact:
The benefits of the project to the economy arise from:
- tax revenues generated from the corporate tax levied on the company;
- employment generation and incremental earnings of labor - 1,800 semi- and un-skilled jobs will be created during the life of the project at a wage premium of 30% above the prevailing market wage; and
- consumer surplus resulting from the project’s ability to drive cement market prices down as low which will greatly benefit consumers who are presently paying high cement prices.
Moreover, the venture is expected to have substantial spill-over economic benefits, such as attracting other industries to M’Sila and helping create a more vibrant building materials and construction industry in the country.
- IFC''s Role:
First, IFC will provide long-term financing, which is unavailable in Algeria. Second, IFC has played a catalytic role in mobilizing financing and guarantees from other international as well as local financial institutions. Third, IFC will play a major developmental role by ensuring that the project meets World Bank environmental and safety guidelines. The investment will serve as a model in pollution and dust emission control in Algeria and will be the first cement plant in the country to meet the latest most stringent international environmental guidelines. Finally, IFC’s presence in a major project involving a foreign sponsor also supports the Algerian government’s efforts to attract foreign investment in the non-oil sectors.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Nassef Sawiris- CEO of OCI
160, 26th July Street, P.O. Box 1191, Agouza
Cairo, Egypt
Telephone: 202 302-6930
Fax: (202) 303-0506
160, 26th July Street, P.O. Box 1191, Agouza
Cairo, Egypt
Telephone: 202 302-6930
Fax: (202) 303-0506