Summary of Proposed Investment
Project Number
8962
Company Name
WEST AFRICAN CEMENT SA
Date SPI Disclosed
May 29, 1998
Country
Togo
Industry
Manufacturing
Status
Completed
Sector
Cement
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : Aug 18, 1998
Signed : Oct 4, 1999
Invested : Dec 15, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Togo-Wacem |
| Region | Sub-Saharan Africa |
| Sector |
Projected Board DateJune 29, 1998
Company NameWest Africa Cement Sarl
Technical Partner and/or Major Shareholders
Shareholders: Mr. Manubhai J. Patel (72.5%) through three of his companies and Mr. Prasad Motaparti (27.5%). Mr. Patel is a Kenyan from Indian origin and Mr. Motaparti is from India. They are both experienced businessmen with successful track record in Ghana, India, Kenya and Togo. According to Togo''s Mining code, 10% of the company''s shares must be donated to the Government of Togo. In addition, there is a potential for a participation from the Togolese private sector.
Technical assistance: Technical know-how is provided by a team of competent Indian engineers and technicians assembled by the project sponsors.
Project Cost Including proposed IFC investment
Total project cost has been estimated at US$19.8 million, including physical contingencies and initial working capital. IFC is expected to make a loan and equity investment of US$6.0 million to support the project.
Location of project and Description of site
The project is located in Tabligbo, some 80 km north-east of Lomé, Togo’s capital city. Tabligbo is a mostly flat area with vegetation consisting mainly of savannah and small trees. It has a large limestone deposit. Its population of about 14,000 inhabitants live from agriculture: maize, cassava, groundnuts and cotton.
Description of Company and Purpose of Project
The project involves the privatization and rehabilitation of a 4,000 tons per day clinker production plant developed in the late 1970s by the Governments of Côte d’Ivoire, Ghana and Togo with the technical and financial support of several institutions including the World Bank. One of the two production lines has already been rehabilitated. IFC loan is needed to help Wacem rehabilitate the second production line, acquire a power plant and meet its working capital requirements.
The project will have strong developmental effects. It will make a productive use of the plant''s existing assets, revive Tabligbo, help develop coastal navigation in West Africa, generate foreign exchange revenues, promote regional integration, and create more than 400 permanent jobs in a rural area.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. Environmental issues associated with this project include: site contamination from past operations; air emissions; water and supply, availability, and quality; liquid effluents; solid wastes; the handling and processing of raw materials, fuels, and finished products; and mine reclamation and closure. Occupational health and safety issues associated with this project include: fire prevention, and emergency response; and work place health and safety (including equipment safeguarding and employee exposure to noise and dust).
Wacem and IFC''s technical and environmental department are currently evaluating whether the performance of the kiln air pollution control equipment is adequate to maintain acceptable emissions levels. If, as a result of this evaluation, the existing equipment''s performance is found lacking, Wacem will implement the necessary capital and/or operational improvements, either by rehabilitation or upgrading/retrofitting, so as to achieve emission levels acceptable to the IFC at project completion (as defined in the Investment Agreement). Wacem has prepared a reclamation and closure plan for the limestone quarry. The plan addresses reclamation or areas remaining from the original operation (1980-1984), as well as ongoing mining activities. The company has committed itself to complying with all applicable local and World Bank policies and guidelines and will provide annual environmental reports to IFC.
The is available from the Public Information Center.
| Date SPI sent to PIC | May 29, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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