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| PT Holcim Indonesia Tbk-Tuban, East Java |
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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 | 27073 |
| Company name | PT Holcim Indonesia Tbk |
| Country | Indonesia |
| Sector | Nonmetallic Mineral Product Manufacturing |
| Environmental category | A |
| Department | Global Manufacturing & Services |
| Status | Pending Approval |
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| Date SPI disclosed | July 30, 2008 |
| Projected board date | September 30, 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 project involves the construction, equipping and placing into operation of a greenfield, integrated cement plant with a production capacity of up to 1.7 million tons per annum (mtpa) cement production facility, inclusive of a jetty and a captive power plant, to be located in Tuban, East Java, Indonesia.
The project company, PT Holcim Indonesia Tbk (Holcim Indonesia or the company), is the third largest cement manufacturer in the country and has two existing integrated plants with an installed capacity totaling about 7.9 mtpa. The company is listed on the Indonesia Stock Exchange. |
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| Project sponsor and major shareholders of project company |
Holcim Ltd (Holcim or the Group) is one of the world's leading producers of cement and aggregates. The Group also supplies ready-mix concrete and asphalt and a range of other services. Holcim works in more than 70 countries and employs almost 90,000 people.
Holcim entered Indonesia in 1998. At present, it holds 78.2% of the company’s shares, with the balance of 21.8% held by the general public. Holcim is seriously considering the feasibility of proceeding with the project and, in parallel, is seeking to raise the necessary financing before making a final decision in the coming weeks. |
| Total project cost and amount and nature of IFC's investment |
| The project cost is estimated at $511 million. IFC has been requested to provide financing of up to $150 million for its own account and syndicate an additional amount of up to $200 million in the form of debt. |
| Location of project and description of site |
| The project will be located in Tuban, East Java |
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| Anticipated development impact of the project |
-Continuous supply of cement: By sustainably improving the availability of affordable cement, the Project will help sustain the growing construction, housing and infrastructure sectors in the country.
–Employment Generation: The project will create direct jobs and indirect employment to the local communities as well as training opportunities in various areas.
- Increased local supply chain: The project will create new business opportunities in the local economy due to increased demand for raw materials and related transportation services as well as additional supply of cement through distributors and retailers.
- High level environmental and social performance: by complying with the World Bank Group guidelines, the company will achieve high level environmental and social performance. |
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| IFC's expected development contribution |
Access to long-term financing:
IFC will provide long-term financing with a sufficiently long grace period to support a large and capital-intensive project in Indonesia, where such funds are better suited for cyclical industries such as cement and are not readily available locally.
- Mobilization of long-term financing:
IFC will play a catalytic role in mobilizing a significant portion of long-term senior debt required for the Project. IFC’s presence is expected to provide additional comfort to potential commercial lenders. This is particularly important given the current international debt market conditions.
- Environmental and social management:
IFC will help the company apply high standards in mitigating potential environment and social impacts of the project. |
| Environmental and social issues - Category A |
| This is a Category A project according to IFC’s Procedure for Environmental and Social Review of Projects. Please refer to the Environmental and Social Review Summary (ESRS), which has the full Environmental and Social Impact Assessment (ESIA). |
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| For inquiries about the project, contact: |
Tim Mackay
CEO/President Director
PT Holcim Indonesia Tbk
Menara Jamsostek
North Tower, 15th Floor
Jl. Jenderal Gatot Subroto No. 38
Jakarta 12930, Indonesia
Telephone: +62 21 52 962011
Fax: +62 21 52 962102
Email: tim.mackay@holcim.com |
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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 |
Holcim Indonesia main office:
PT Holcim Indonesia Tbk
Jamsostek Tower North, 16th Floor
Jalan Jendral Gatot Subroto 38
Jakarta 12930
Telephone: 021-5296-6980
Fax: 021-5296-2125
Holcim Project site office:
Jalan Glondonggede – Kerek, Km 3
Desa Karangasem, Kecamatan Jenu
Kabupaten Tuban 62352, East Java
Telephone: 0356-411-804
Holcim office in Tuban
Jalan Basuki Rahmat 20
Tuban, East Java
Telephone: 0356-332-929
Faximile: 0356-331-314
Glondonggede Village Council Office
Glondonggede Village
Jenu District
Merkawang Village Council Office
Merkawang Village
Tambakboyo District
Karangasem Village Council Office
Karangasem Village
Jenu District
Mliwang Village Council Office
Mliwang Village
Kerek District
Kedungrejo Village Council Office
Kedungrejo Village
Kerek District
Sawir Village Council Office
Sawir Village
Tambakboyo District
Dasin Village Council Office
Dasin Village
Tambakboyo District |
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