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| SEF Konstruksion |
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| 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 | 25323 |
| Company name | Konstruksione Metalike shpk |
| Country | Albania |
| Sector | Primary Metals |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
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| Date SPI disclosed | September 12, 2006 |
| Projected board date | October 13, 2006 |
| Previous Events | Invested: May 11, 2007
Signed: January 22, 2007
Approved: January 22, 2007 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Konstruksione Metalike, is the largest locally-owned producer of heavy and light steel structures and steel frames in Albania. The company currently imports and customizes locally approximately 2,000 tonnes of steel structures a year. This project involves:
- expanding steel-finishing capacity to approximately 4,000 tonnes of steel structure per year through the construction of a larger site in Vora, an industrial area adjacent to Tirana; and
- purchasing new cutting and welding machinery and transport equipment to sustain the expansion and improve operational efficiencies. |
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| Project sponsor and major shareholders of project company |
| The project sponsors are three mechanical engineers: Mr. Fatos Miraci, Mr. Ivan Ilia and Mr. Ilir Koroveshi. The owners of the company have been working in mechanical engineering positions since the early 1970s, and have since developed a commercial and managerial affinity well evidenced through the company’s recent performance. Thanks to their education and past experience, the company produces high quality and complex metallic works and invests in the latest technology for project design and management, including SAP 2000, STRUCAD, AUTOCAD 2000 and COMTA 2005. To this end, the company is the only ISO 9001-2000 certified local company. The company currently has approximately 65 employees with a low turnover of staff. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at Euro 4.7 million. The proposed IFC investment consists of an A loan of Euro 2.0 million. |
| Location of project and description of site |
| The company’s new workshop and office facilities will be located on an 0.8 ha site in an industrial zone, Vora, on the outskirts of Tirana (on the way to the airport). The local permit process has provided an opportunity for the local community to be informed and consulted about this small industrial development. |
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| Anticipated development impact of the project |
The project contributes to the development and sophistication of Albania’s domestic steel industry, which to date relies heavily on imports of finished steel structures from the region. Konstruksione Metalike is the only domestic company with the ability to cut, weld, paint and finish steel structures in a manner that is directly comparable to finished products imported from other countries. The company is the only one in the country to use AutoCAD-based design technology. As the Albanian construction industry continues to grow and demand for steel rises, Albanians will benefit through the project from larger quantities of affordable and readily available domestic steel structures.
The company employs 65 people, who receive higher salaries than the industry average in Albania. With the proposed project, an estimated additional 40 workers will be hired and properly trained. Development impacts that will be monitored during supervision include the company’s financial performance and transition to higher value-added products. |
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| IFC's expected development contribution |
| IFC has played an important role in helping small companies, like Konstruksione Metalike, that are leaders in their industry sectors and that have potential for strong growth. IFC has provided technical assistance to such companies through SEED-Albania technical assistance facility, including to Konstruksione Metalike with ISO-2000 trainings. Through this project, IFC is helping complete the project’s financing package with long-term financing and is working closely with the sponsors to help strengthen the company’s corporate governance and environmental practices. |
| Environmental and social issues - Category B |
| The project involves the construction and operation of a new workshop and office facilities for a company in the large metal structures business to be located in an industrial zone near Tirana. Based on the site visits and discussions with Konstruksione Metalike management, IFC believes this project will have limited potential adverse environmental and social impacts. Also any impacts will be few in number, site-specific, reversible and easily addressed through agreed mitigation measures. As a result this is a Category B project. |
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| For inquiries about the project, contact: |
Dr. Ing. Fatos Miraci, Administrator
Rr. “Vaso Pasha”, P.24, Shk. 2, Ap.11
Tirana - Albania
Cell.: 011-355-68-20-26708
Telephone/Fax: 011-355-4-227-438
Fax: 011-355-4-22561
E-mail: ishpk@icc-al.eu.org |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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