The project is sponsored by LNM Holdings NV which is part of the LNM Group (the Group). In addition to LNM Holdings NV, the Group includes Ispat International N.V. , a company quoted on the New York Stock Exchange and the Amsterdam Stock Exchange. The Group is the world’s 2nd largest and most global steel producer, with annual sales of over $9 billion and a steel making capacity of 35 million tonnes spread over 12 countries. LNM Holdings is the largest shareholder in Ispat Annaba, with a 70% stake in the company. The remaining 30% are held by SIDER, a state-owned enterprise.

The project cost is estimated at $123 million. The proposed IFC investment is a loan of up to $25 million for its own account.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

The project is located in Annaba, in Eastern Algeria near the border with Tunisia. The project site has easy access to major roads and infrastructure, including port facilities in Annaba.

This is a category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

Location of environmental documents in locally affected community
The Environmental Review Summary (ERS) will be translated in French and Arabic, and posted at the local government office as well as the company’s site: Ispat Annaba spa, Sidi Amar, El-Hadjar BP 2055 23000 Annaba, Algeria Phone: 213 38 87 1669/1630 Fax: 213 38 87 1830

This project is expected to have a high development impact due to: job creation and employment preservation for the existing 13,500 employees in Ispat Annaba and its ancillary facilities; technology transfer through Ispat’s wide experience in steel processing and treatment facilities; local employees’ exposure to global steel making practices through Ispat’s “Knowledge Integration Program”, a quality and cost improvement program designed to disseminate the Group’s best practices among all subsidiaries; and a substantial reduction of the negative externalities caused by polluting effects of the existing plant. IFC’s role in the project involves: supporting the government’s ongoing privatization program by participating in a highly visible and successful privatization; providing long-term financing to the project which is not available on the same terms in Algeria; assisting the company in formulating its investment program; and devising an Environmental Action Plan with the company to conform with international norms of pollution control.