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EBRD, IFC Support Albanian Cement Manufacturer with $60 Million Loan
Largest Foreign Direct Investment in Albania’s Recent History
Tirana, 10 September 2004 – The EBRD and the International Finance Corporation, the World Bank’s Group private sector arm, are together lending Fushe Kruja Cement Factory, one of Albania’s largest cement manufacturers, $60 million to help the company increase production and meet growing demand.
The $30 million loans from each institution will be invested in a new and modern production line with an annual cement capacity of 1.3 million tonnes. The project will help the factory meet world-class environmental and social standards and reduce Albania’s reliance on cement imports. The EBRD and IFC financing is accompanied by an $18 million loan from the OPEC Fund for Reconstruction and Development and a $10 million loan from Greece’s Alpha Bank. The financing represents the largest foreign direct investment in Albania’s manufacturing industry since the country’s transition to a market economy began in the early 1990s.
Jean Lemierre, President of EBRD, said during the signing in Tirana that the project is important not only for Albania’s construction sector but for the country’s economy as a whole. “One of the big challenges for Albania is to attract foreign investment, and this project should clearly demonstrate to investors the possibilities of working successfully in Albania,” Mr. Lemierre added.
Shahbaz Mavaddat, IFC’s associate director for Southern Europe and Central Asia, said, “IFC’s support for the project demonstrates a clear commitment to the development of Albania. IFC looks forward to continuing its support for other projects that will similarly act as a catalyst for growth of the country’s private sector economy.”
Since beginning operations in Albania in 1991, EBRD has invested in projects across the country in sectors including power, telecommunications, insurance and banking, property, and tourism, as well as small and medium-sized enterprises.
IFC’s investments in Albania’s private sector since 1998 have focused on banking and insurance sector privatization, microfinance institutions, manufacturing, and telecommunications. In addition, IFC’s South East Europe Enterprise Development Facility (SEED) has actively supported SME sector development.
Fushe Kruja Cement Factory was established in 2000 as a private company following the government’s privatization process. A subsidiary of the Seament Group of Lebanon, the company employs more than 300 staff at its plant in Frushe Kruje, 35 km outside Tirana.
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