IFC Support Expansion, Modernization of Bosnian Cement Plant with up to 25 Million Euros in Financing
Afshin Molavi
Phone: (202) 458-5674
Fax: (202) 974-4384
E-mail: amolavi@ifc.org
Washington D.C., September 16, 2002—The
International Finance Corporation, the private sector development arm of
the World Bank, will support the rehabilitation, modernization, and expansion
of a recently privatized Bosnian cement factory with up to Euros 25 million
in financing. The investment reflects IFC’s continued support for
Bosnia’s ongoing transition to a market economy.
The investment in Fabrika Cementa Lukavac (FCL), located in the city of
Lukavac, will consist of up to Euros 20 million for IFC’s own account
and up to Euros 5 million from the participating bank, Erste Bank. The
project – estimated to cost approximately Euros 102 million – will seek
to both optimize and expand the clinker and cement production capacity
at the plant.
Khosrow Zamani, IFC’s Director for Southern Europe and Central Asia, said:
“The modernization and expansion of Fabrika Cementa Lukavac and its ultimate
transformation into an efficient, private, sustainable company will be
an important milestone in Bosnia’s ongoing efforts to strengthen its private
sector. The investment will also meet several key IFC strategic goals
in supporting Bosnia, including employment retention, post-conflict economic
recovery, encouraging foreign direct investment, improving environmental
conditions in local industries, and energy savings in production.”
ALAS Bosna and FCL will make the investment. ALAS Bosna is a special
purpose company created to lead the construction and expansion of FCL.
ALAS International, the majority shareholder of FCL, and sole owner of
ALAS Bosna, is a holding company established as a joint venture between
the Asamer & Hufnagl Group (71.5 percent), a leading Austrian private
company in the construction and aggregate business, and Alpine Mayreder
bau GmbH (28.5 percent), another leading Austrian private construction
company. Both Asamer and Alpine are highly regarded companies in
Austria.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people’s lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956 through the close of the last fiscal year on June 30, 2002, IFC
committed more than $34 billion of its own funds and arranged $21 billion
in syndications for 2,825 companies in 140 developing countries. IFC’s
committed portfolio at the end of FY02 was $15.1 billion for our own account
and $6.5 billion held for participants in loan syndications.
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