Vicat, majority owner with 60% of the shareholding, is a multi-regional manufacturer and distributor of cement, aggregates, ready-mix concrete and related building materials and is present in nine countries with €2.1 billion in sales in 2007 and over 6,000 employees. Vicat is listed on the Paris stock exchange. KKI owns 40% of the project company and is one of the leading investment companies in Kazakhstan with a diversified portfolio of investments across various sectors.

The total project cost is estimated at $230 million. The proposed IFC investment amounts to up to $60 million A Loan, up to $120 million B Loan and an equity participation of approx. 10% in the company.

75.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	60.0
Equity	15.0

* These investment figures are indicative

The Jambyl Cement Company’s cement plant will be located in Mynaral, Kazakhstan which is located near the Balkash lake, about 400km North of Almaty.

The proposed project is expected to meet the growing demand in the local markets while helping reduce the country’s dependence on more expensive imports thus lowering cement prices to customers and supporting the development of the construction and housing sectors stimulating further infrastructure development. In addition, the project is expected to provide desirable employment opportunities to the region as well as stimulate private sector growth and increase the region’s economic activity. The project will also help phase out existing wet processing plants, thus helping on climate change through reduced CO2 emissions.

IFC ‘s role in the project consists of the following:

- IFC will be providing financial support through its long-term loan investment with a long grace period, which is not readily availably locally and more suited for large investments in cyclical industries.
- IFC will mobilize additional long-term resources through its syndication of B loans; and
- IFC will support the company in improving its local environmental and social practices and ensure compliance with IFC Performance Standards.

This is a category B project according to IFC’s environmental and social review procedure because a limited number of specific social and environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environment, health and safety and social aspects of the project were analyzed:

- environment and social assessment, and management systems;
- labor and working conditions including management of employee occupational health and safety;
- pollution prevention and abatement (including management of resources including energy, water, hazardous and other materials;
- management of emissions, discharges, hazardous and other wastes); and
- management of community environment, health, safety and security personnel related impacts, both during construction and operation.

A summary discussion on the social and environmental aspects of relevance to the project including the company’s plans to address these impacts has been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC.