IFC FINANCES LPG DISTRIBUTION COMPANY IN KAZAKHSTAN
Jannette Esguerra
Phone: (202) 458-5204
Fax: (202) 974-4384
E-mail: jesguerra@ifc.org
WASHINGTON, D.C., November 5, 1999 — The
International Finance Corporation today signed an agreement to support
use of environmentally friendly liquified petroleum gas (LPG) in Kazakhstan
through loan of up to US$20 million to Alautransgas, a leading LPG distributor.
IFC's investment consists of a loan of $20 million with a conversion option
of up to $2 million. Alautransgas will use the loan to refurbish transport
and industrial equipment, tanks and cylinders, modernize eight regional
gas distribution centers, and expand operations into three new regions
of Kazakhstan.
As part of the project, the company will work with an international LPG
distributor to raise safety features to World Bank Group standards, including
investing in fire protection equipment, automatic alert systems and by
instituting industry best-practice.
Mr. Mohsen Khalil, Regional Director of IFC's Central Asia Middle East
and North Africa Department said that the project supports a modernization
program that will more than double the company's LPG production and provide
a reliable supply of LPG across the country. LPG is mainly used as a fuel
for cooking. It is attractive to use because it is more convenient than
other fuels and is cleaner than wood, coal or oil.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will 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.
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