Summary of Proposed Investment
Project Number
9069
Company Name
Aden Company for Silos and Mills
Date SPI Disclosed
Jul 8, 1998
Country
Yemen, Republic of
Industry
Agribusiness and Forestry
Status
Completed
Sector
Grain Processing (Milling, Starch, Flour, Malt)
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Nov 3, 1998
Signed : Nov 16, 1998
Invested : Mar 27, 2000
Project Description
REVISED Summary Of Project Information (SPI)
| Project Name | Yemen-Aden Company for Silos and Mills |
| Region | Central Asia, Middle East and North Africa |
| Sector |
Projected Board DateAugust 7, 1998
Company NameAden Company for Silos and Mills, Ltd.
Technical Partner and/or Major Shareholders
The project’s sponsor and majority shareholder is Al-Rowaishan Establishment for Universal Trade (Al-Rowaishan, 45%), a subsidiary of Al-Rowaishan Group of industrial and agribusiness companies, fully owned by Sheikh Mohamed Ben Yahya Al-Rowaishan.
Al-Rowaishan is active in the imports of foodstuff, including wheat, wheat flour, sugar, and rice, while the Group has diversified operations in turnkey constructions, maritime transport, airfreight and charter operations, and oil field services. Established since 1979, Al-Rowaishan has a sound presence on the local market. In 1996, the sponsor’s wheat and flour imports were 14.4% and 11.2%, respectively, of total corresponding imports.
Project Cost Including Proposed IFC Investment
The total project cost is estimated at approximately US$48 million. The Company has requested IFC financing of $12 million.
Location of Project and Description of Site
The proposal is to set up a flour mill and grain silos in the Al-Mu’alla zone area, at the port of Aden, the Republic of Yemen. The mill is designed with a wheat milling capacity of 600 tpd to reduce costs and increase product quality to meet local demand. Silos with a maximum capacity of 45,000 tons of grain will complement the project and allow the company to receive shipments of up to 30,000 tons of wheat while holding fifteen days of raw material needs. The project will be built on a 5.5 ha site leased for 21 years and located at Al-Mu’alla zone area of the port of Aden. This is a deep-water port that has been selected as one of the best sites for construction of such a facility to receive imported wheat and serve the local market. The Company will use one of six an existing jetty to handle shipments of up to 40,000 tons of wheat.
Description of Company and Purpose of Project
The project will be the first modern flour mill in Yemen. Because of its advanced design and technology, strategic location, and economies of scale, the company will benefit from significant savings on logistical and processing costs, and is expected to be the low-cost producer in Yemen and provide high quality flour and price competition. By importing modern milling technology and training Yemeni nationals in international quality management and operational skills, the project will demonstrate the benefits of a properly structured milling operation, thus promoting the development of the milling industry within the context of economic liberalization.
The project would provide 145 direct skilled jobs, with additional employment benefits to be generated through the sale of bran and pollards by-products which in turn would stimulate the livestock industry.
IFC will assist Al-Rowaishan in developing a business plan, including a detailed analysis to establish the viability of the project and meet IFC standards. IFC’s participation in the financing of the project will also help to raise additional financing from foreign banks, in an environment where local term financing is scarce, particularly for agricultural related activities.
Environmental Category and Issues
This is a category B project according to IFC''s environmental review procedure. The mill site is to be established within the industrial zone of the port of Aden and there are no issues connected with land clearing, relocation of people, or the establishment of industrial operations close to residential areas. Power for the mill will be provided by three 1.5MW diesel generators and air emissions from these sources will be within World Bank Group guidelines. Bag filters will be used in the mill to control fugitive dust emissions to meet World Bank Group guidelines for ambient air in the workplace. There are no process water effluents, and sanitary wastes are discharged to the port''s sewerage system. Machinery noise will be mitigated through design of equipment and installation of noise absorbing building materials. Fire prevention measures will include emergency detection systems, fire fighting equipment and training. Noise mitigation and fire fighting control arrangements conform to World Bank Group guidelines.
The is from the Public Information Center.
| Date SPI sent to InfoShop Revised | July 8, 1998 July 9, 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
Related ESRS/ERS
