The project is sponsored by two prominent Saudi businessmen, Engineer Abdullah Ahmed Bugshan (Bugshan) and Sheikh Mohammed Hussain Al-Amoudi (Al-Amoudi), and Eastern Province Cement Company (EPCC) (together known as the sponsors). While EPCC has a 30% stake, each of Al-Amoudi and Bugshan owns 15% and five minority shareholders own the balance of 40%. AYCC’s minority shareholders are: - Saudi BinLadin Group of Saudi Arabia (10%); - Baroom Investment Holding Company, Limited of Saudi Arabia (10%); - Sara Development Company, Limited of Saudi Arabia (5%); - Yemeni Group for Development of Yemen (5%); and - Ali Ali Hussain Miksa of Yemen (10%). Bugshan is a senior partner at Abdullah Said Bugshan & Brothers, a family partnership. Its activities include civil, electrical, mechanical and telecommunication construction and sales, installation, operation and maintenance of power generation, telecommunication networks, air-conditioning equipment, and heavy construction equipment. Al-Amoudi owns a broad portfolio of businesses in oil, mining, agriculture, hotels, hospitals, finance, operations, and maintenance through two conglomerate holding and operating companies Corral Petroleum Holdings AB and Muwakaba for Industrial Development and Overseas Commerce (MIDROC). Established in 1982, EPCC is one of the leading cement producers in the Middle East. EPCC is headquartered in Dammam and operates a cement plant with a capacity of 3.3 million tpa in Al Khursaniya. It is a listed company.

The total project cost is estimated at $250 million. IFC has been requested to provide the company with an A loan of up to $70 million for IFC’s own account and mobilize a B loan and/or parallel loans of up to $55 million.

70.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.0
Equity

* These investment figures are indicative

The project is located about 60 kilometers northeast of Mukalla, the capital of Hadramout Governorate. The company is located in close proximity to deposits of clay, sandstone and gypsum, the key raw materials for cement production.

The project is expected to have the following development impacts: - The project will construct a state-of-art cement plant with good location for raw material supplies and local market access. - The project is expected to create about 250 direct jobs and additional indirect employment to the local community and other benefits including training for locally-hired staff. - The project may encourage other foreign companies to pursue investment opportunities in Yemen.

IFC’s expected development contributions are as follows: - IFC will provide and mobilize long-term funds for a large capital intensive investment to support a local cement producer in Yemen where such funds are scarce. - IFC will play an important role in structuring the transaction, introducing the company to other financial institutions, and evaluating the environmental and social issues, thus reducing the project's risk profile.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. Please refer to the Environmental and Social Review Summary (ESRS), which also has the full Environmental Impact Assessment (EIA) and a complete carbon dioxide emission calculation for the project attached.