Antea - 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	25886
Company name	Antea Cement SH A
Country	Albania
Sector	Nonmetallic Mineral Product Manufacturing
Environmental category	A
Department	Global Manufacturing & Services
Status	Pending Disbursement

Date SPI disclosed	March 26, 2008
Projected board date	May 29, 2008
Previous Events	Signed: November 20, 2008 Approved: May 29, 2008

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

The project comprises the construction of a greenfield state-of-the-art cement plant with a production capacity of 3300 tons per day clinker (or 1,400,000tons per year cement) at Boka e Kuqe (the project) by Antea Cement Sh. A (Antea or the company).

Anticipated development impact of the project

The project will allow Albania to shift from being an importer of cement to becoming self-sufficient. The project is also expected to provide employment to about 400 workers (including about 330 workers at the plant) and generate indirect benefits through a substantial multiplier effect in construction and infrastructure sectors.

IFC's expected development contribution

IFC will play a critical role in providing long-term funds for a large, capital-intensive investment to support the development of a competitive cement producer in a country where such funds are scarce. Additionally, IFC will ensure the project’s compliance with the World Bank environmental, social, and safety policies and guidelines.

Environmental and social issues - Category A

The review of this project consisted of appraising the project’s technical, environmental and social information, visits to the project’s plant and quarry sites, as well as surrounding areas. The project documentation prepared by Antea and its consultants has also been reviewed and discussed in detail with the company and its consultants. An IFC representative has also met with relevant local authorities.

Performance standards (PS) applicable to this investment include:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS5: Land Acquisition and Involuntary Resettlement
- PS6: Biodiversity Conservation and Natural Resources Management
- PS8: Cultural Heritage

The following Performance Standard was screened out during the due diligence process:

- PS7: Indigenous People - none were identified within the project affected area.

The Antea Project requires significant land acquisition which will result in economic displacement of some local inhabitants of the project affected areas and associated conversion of herbal collection and agricultural land to industrial usage in a valley area with little industrial tradition. Some species of flora and fauna found in the broad project area are of conservation concern in Albanian and on the “least concern” category of the IUCN Red List. The project has been classified as a “Category A” project according to IFC’s Environmental and Social Review Procedure because this land acquisition impact is considered to be “significant, adverse and largely irreversible”. Antea will implement measures to address the potential environmental and social impacts of the Project and to ensure that the Project will, upon implementation of the specific agreed measures, comply with all environmental and social requirements (Albanian laws and regulations and the IFC environment and social policies and the IFC environmental, health and safety guidelines). Information about how these potential impacts will be addressed by Antea is summarized in the Environmental and Social Review Summary (ESRS) and in the Action Plan agreed with the client.

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