BC Albania

Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number	25922
Company name	The Best Construction Sh.p.k.
Country	Albania
Sector	Construction and Real Estate
Environmental category	B
Department	Global Manufacturing & Services
Status	Active

Date SPI disclosed	June 18, 2007
Projected board date	July 31, 2007
Previous Events	Invested: April 25, 2008 Signed: February 29, 2008 Approved: February 28, 2008

View Environmental & Social Review Summary (ESRS), click here

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Best Construction (BC or the company) is a property development and management company in Albania. BC is expanding and diversifying its activities to meet the growing demand for residential, retail and commercial needs particularly in the Tirana and Durres region. BC’s 2007-2009 three-year capital expenditure program will focus on:

- in Lundra a complex of 22,000 m2 consisting of 26 town houses and 70 apartments along with commercial and retail space; and
- in the Currila coastal area next to Durres, a complex of 33,000 m2 similar in concept to the one of Lundra.

Anticipated development impact of the project

The project will supply quality residential and commercial space and introduce mixed-use centers in the underserved secondary cities of Albania.

The project will provide direct employment to some 200 people in addition to the 100 already employed and create indirect jobs of up to 1,000 through contractors for construction and properties’ management and maintenance

The project will stimulate business infrastructure growth and employment in new and secondary communities that are underdeveloped relative to Tirana.

The project will also create more demand from local suppliers for construction materials and maintenance services.

IFC's expected development contribution

IFC has been helping BC since early 2006 with its expansion and diversification strategy to include the new function of property (asset) management services with a focus on mixed-use developments, particularly in suburban and secondary strategic cities.

IFC is also informally advising BC on its capital expenditure and financing schedule for the next three years to ensure adequate asset-liabilities matching, debt service and monitored expansion.

Environmental and social issues - Category B

BC is a category B project according to IFC's environmental and social review procedure. A summary of IFC’s environmental and social review findings for the project including the rationale for the B categorization will shortly be (is) publicly available in the Environmental and Social Review Summary (ESRS) on IFC’s website: http://www.ifc.org/projects. The Environmental and Social Action Plan (ESAP), which is attached to the ESRS, contains specific tasks that the client will undertake to mitigate perceived risks and impacts from the project, and to ensure compliance with IFC’s Performance Standards.

The main EHS aspects of the proposed projects are: land acquisitions, licensing and permitting, environmental engineering and safety engineering principles during the sitting and construction phase, health and safety during the construction phase and during the utilization, pollution prevention and abatement, community engagements and an overall EHS management system for both developments, Lundra and Curilla.

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