Summary of Proposed Investment
8802
NCC Fegda UAB
Mar 12, 1998
Lithuania
Manufacturing
Completed
Quarried Construction Materials (Including Asbestos, Crushed Stone Construction, Aggregates, Granite Block, Sand, etc.)
Regional Industry MAS LAC & EUR
FI
Approved : May 14, 1996
Signed : Mar 17, 1997
Invested : Mar 23, 1999
Project Description
SUMMARY OF PROJECT INFORMATION (SPI)
Project Name: Lithuania-Superfos Fegda
Region: Europe
Sector: Cement and Construction
Project No.: 008802
Projected Approval Date: April 12, 1998
Company Name: Superfos Fegda UAB
Technical Partner and/or Major Shareholders:
Superfos Construction A/S, Danish Strategic Partner, 43% shareholding.
UAB Fegda: Lithuanian Partner, 34% shareholding.
The Investment Fund for Central and Eastern Europe (IØ): 23% shareholding.
Project Cost Including Proposed IFC Investment:
The total project cost is USD 5 million equivalent, including an IFC Loan of USD 1.7 million. The loan will be made under the IØ/IFC Co-Investment Line (project number: 7393), which was approved by the IFC Board on October 3, 1996.
Location of Project and Description of Site:
The project site will be in Vilnius, Lithuania, in an industrial area.
Description of Company and Purpose of Project:
The project consists of the establishment of an asphalt production plant and a road construction company which would be the first such facility in Lithuania to recycle asphalt. Demand is being fueled by the launching of an extensive road improvement program for the coming 3-4 years in Lithuania and shortage of sufficient local asphalt production. The Project is expected to have an annual capacity of about 250,000 tons based on a two-shift capacity.
Superfos Construction A/S (SC), started in 1931, is the largest road construction company and supplier of raw materials for construction in Denmark. SC is organized under the Superfos group which in addition to SC comprises Superfos Construction US Inc., USA. Superfos Packaging A/S and Superfos Chemicals A/S with a total of more than 50 subsidiaries world wide. The Superfos group is listed on the Danish Stock Exchange and employs about 4,850 people. In 1996, the Superfos group had a turnover of about USD 792 million equivalent.
UAB Fegda, established in 1993 and 100% private-owned, is one of the leading road construction companies in the Vilnius region.
Environmental Category and Issues:
This is a category B project according to IFC’s environmental review procedures. Key environmental issues include dust, noise, solid waste, handling and storage of chemicals, and working environment. Dust form handling and storage of raw materials will be minimized by spreading of water on the ground. Noise level from the production will not exceed 75 dB (A) during day time and 70 dB (A) during night time outside the production area. Hydrocarbons, including bitumen, will be transported and stored in containers or tanks. Other raw materials such as sand, gravel and recycled asphalt will be stored out doors on gravel or asphalt paved grounds. Surface waste water from areas where oil is handled will be collected and cleaned in an oil/water separator. All employees will be provided with necessary safety equipment, including fluorescent work wear, hearing protection, helmets, masks, footwear and glasses etc. For road pavement, necessary traffic safety measures will be taken, including traffic direction.
Based on its review and analysis, IØ has concluded that the Project will meet World Bank environmental, health and safety policies and guidelines, as well as Lithuanian requirements. The Environmental Review Summary is available from the Infoshop
Date SPI sent to Infoshop March 12, 1998
For further information contact:
Corporate Relations Unit
tel: (202) 473-7711
fax: (202) 974-4384
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