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| Jambyl Cement LLP |
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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 | 26891 |
| Company name | Jambyl Cement LLP |
| Country | Kazakhstan |
| Sector | Nonmetallic Mineral Product Manufacturing |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
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| Date SPI disclosed | June 27, 2008 |
| Projected board date | July 29, 2008 |
| Previous Events | Invested: October 24, 2008
Signed: August 8, 2008
Approved: August 7, 2008 |
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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 |
| The proposed project will support the expansion of the cement activities of the Vicat Group (Vicat), the third largest cement company in France, through a financing package to Jambyl Cement Company, in Kazakhstan to finance the construction of a greenfield, state-of-the-art dry-process 1.1 million tons per annum (mtpa) cement plant which will be located in Mynaral, Kazakhstan. Based on the anticipated growth in the cement market in Kazakhstan and the need for updating the country’s existing production capacity which is based on the more polluting and less efficient wet kiln process, Vicat Group has recently acquired 60% of Anys Invest LLP which owns 100% of the Jambyl Cement Production Company LLP, while JSC Kazkommerts Invest (KKI) owns the remaining 40% of Anys Invest LLP. |
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| Project sponsor and major shareholders of project company |
| Vicat, majority owner with 60% of the shareholding, is a multi-regional manufacturer and distributor of cement, aggregates, ready-mix concrete and related building materials and is present in nine countries with €2.1 billion in sales in 2007 and over 6,000 employees. Vicat is listed on the Paris stock exchange. KKI owns 40% of the project company and is one of the leading investment companies in Kazakhstan with a diversified portfolio of investments across various sectors. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $230 million. The proposed IFC investment amounts to up to $60 million A Loan, up to $120 million B Loan and an equity participation of approx. 10% in the company. |
| Location of project and description of site |
| The Jambyl Cement Company’s cement plant will be located in Mynaral, Kazakhstan which is located near the Balkash lake, about 400km North of Almaty. |
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| Anticipated development impact of the project |
| The proposed project is expected to meet the growing demand in the local markets while helping reduce the country’s dependence on more expensive imports thus lowering cement prices to customers and supporting the development of the construction and housing sectors stimulating further infrastructure development. In addition, the project is expected to provide desirable employment opportunities to the region as well as stimulate private sector growth and increase the region’s economic activity. The project will also help phase out existing wet processing plants, thus helping on climate change through reduced CO2 emissions. |
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| IFC's expected development contribution |
IFC ‘s role in the project consists of the following:
- IFC will be providing financial support through its long-term loan investment with a long grace period, which is not readily availably locally and more suited for large investments in cyclical industries.
- IFC will mobilize additional long-term resources through its syndication of B loans; and
- IFC will support the company in improving its local environmental and social practices and ensure compliance with IFC Performance Standards. |
| Environmental and social issues - Category B |
This is a category B project according to IFC’s environmental and social review procedure because a limited number of specific social and environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environment, health and safety and social aspects of the project were analyzed:
- environment and social assessment, and management systems;
- labor and working conditions including management of employee occupational health and safety;
- pollution prevention and abatement (including management of resources including energy, water, hazardous and other materials;
- management of emissions, discharges, hazardous and other wastes); and
- management of community environment, health, safety and security personnel related impacts, both during construction and operation.
A summary discussion on the social and environmental aspects of relevance to the project including the company’s plans to address these impacts has been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC. |
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| For inquiries about the project, contact: |
Mr. Thierry Plaisant
Managing Director
Ivanilova Street 48
Almaty, Kazakhstan
+7 7272440244
t.plaisant@jambylcement.kz |
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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 |
| Local access of project documentation |
The company will locally disclose social and environmental assessment documents at the following location:
Mayor Office,
Mynaral,
Kazakhstan |
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