Antea Cement

Project Description

The EBRD is considering a project totalling EUR 29.4 million in debt and equity financing for the construction and operation of a green field cement plant designed to produce 1.5 million tons of cement annually at a plant located about 30 km north of Tirana. The financing package would include EUR 12.6 million in equity and EUR 16.8 million in subordinated debt.

The project also includes the development of two quarries in the vicinity of the site to supply the cement plant with raw materials. The start of production is scheduled for 2010.

In addition to the EBRD financing, funding is also being provided by TITAN SA, an international cement producer, and also by the IFC

Transition Impact

The project will be one of the largest industrial Greenfield investments in Albania. The project’s transition impact potential rests on the following two elements:

• Increased competition / market expansion
  At present, most of Albania’s cement demand is met through imports. The only existing cement producer in the country covers a significant portion of Albania’s domestic demand for cement. The entry of a second major player in the local cement market restores competitive pressure. A part of the company’s production will be exported into the region, thus strengthening the trade links between Albania and its neighbours.
  
  
• Skill transfer
  The entry of Titan as an experienced international producer into the Albanian cement sector will demonstrate industry best practice to other companies in Albania as well as transfer knowledge to the local workforce which will be trained in state of the art new technologies.

 

The Client

The beneficiary company is Antea Sh.A., an open joint stock company in Albania. Antea Sh.A. is majority owned by Titan Cement Company S.A.. Titan is.an international cement producer with plants operating in three continents.

EBRD Finance

EUR 12.6 million equity and EUR 16.8 million subordinated debt.

Project Cost

EUR 210 million.

Environmental Impact

Environmental classification and rationale

The project has been screened A/0, requiring an environmental and social impact assessment (ESIA) in line with the Bank’s Environmental Policy (2003) and Public Information Policy. The project is also subject to Albanian EIA requirements.
The Project was also classed as Category A project by the IFC in accordance to IFC’s Environmental, Health and Safety Guidelines (2007).

Information reviewed during the environmental appraisal

The following documents where received and complete the Environmental and Social due diligence of the project in line with the Bank’s Environmental Policy:

• Public Consultation and Disclosure Plan (PDCP), Atkins dated October 2007, in English and Albanian;
• Project Scoping Document, Atkins, dated October 2007, in English and Albanian;
• Environmental and Social Impact Assessment (ESIA), WS Atkins International Limited, dated February 2008 – in English and Albanian;
• Appendix, Transport Planning Study, WS Atkins International Limited, dated April 25, 2007;
• Appendix, Road Safety Assessment Study, WS Atkins International Limited, dated December 12, 2007;
• Appendix, Ecological Assessment, Prof. Dr. Arsen Proko, dated December 12, 2007;
• Social Compensation Plan Framework, WS Atkins International Limited, dated February 2008, in English and Albanian;
• Social Compensation Plan Framework, Appendixes, WS Atkins International Limited, dated February 2008, in English and Albanian
• Antea CO2 emission calculation, not dated
• Limestone reclamation, a drawing illustrating the proposed final appearance of the limestone quarry, not dated
• Flysch reclamation, a drawing illustrating the proposed final appearance of the flysch quarry, not dated

Members of the EBRD and IFC environment departments visited the site, on numerous occasions, in 2007 and actively participated in developing and finally approving the above documents and criteria.

Due diligence undertaken and outcomes

An Environmental, Social Impact Assessment was undertaken of the cement plant Project by an independent international consultant. The Project has also been subject to Albanian EIA requirements. Members of the Bank’s and IFC Environment Department visited the site as part of the due diligence, evaluated and approved the Social Impact Assessment Report.
The new cement plant will be designed in line with best international practice and appropriate environmental and social management systems are to be implemented during the construction and operation phases of the Project. The Project has also been structured to meet European Union Integrated Pollution and Prevention (“IPPC”) Directive BREF Note for Cement and Lime Manufacture and the IFC EHS Guidelines for Cement Manufacture. The project will include appropriate dust abatement and will attain a minimal NOx emission standard of 600 mg/Nm3. Given that road transport will be used for both raw material and final product delivery a road safety assessment and subsequent management system has been developed to minimize traffic related impacts.

Antea will operate the new cement plant and associated quarries in compliance with Albanian laws and regulations as well as in accordance with EU environmental standards and IFC EHS Guidelines. An environmental management system and continuous monitoring will be incorporated into day-to-day operations of the cement plant.

Disclosure of information and consultation
The Project is subject to a public consultation and a disclosure plan (PCDP) that has been developed and approved by the Bank.

Disclosed materials include:

• 2008 ESIA Non Technical Summary in Albanian and English
• 2008 Environmental and Social Impact Statement, Main Report plus appendixes in Albanian and English
• 2007 Public Consultation and Disclosure Plan (PCDP) in Albanian and English
• 2008 Social Compensation Plan Framework in Albanian and English

The materials are available in hard copy at the following locations in Albania

• Antea Office; Rruga Luigj Gurakuqi, Pallati 89, Section A, 10th floor; Tirana Albania Contact: Mrs. Teuta Dobi, phone 00 355 427 4778
• EBRD Regional Office in Tirana;. Torre Drin Building, 4th Floor; Abdi Toptani Street Tirana, Albania; Tel: +355 42 32898, Fax: +355 42 30580. Contact: Daniel Berg, Head of Office, email: bergd@ebrd.com

IFC Albania office Deshmoret e 4 Shkurtit, No. 34Tirana, Albania; Telephone: (355-4) 280-650/1; Fax: (355-4) 240-590
The EIA package and Executive Summary have also been released for public review by the project sponsor on its website www.titan-cement.com and released locally in the following locations:

• Antea Office; Rruga Luigj Gurakuqi, Pallati 89, Section A, 10th floor; Tirana Albania Conatct: Mrs. Teuta Dobi, phone 00 355 427 4778
• Kruja Municipal Council offices; Kruja city; Contact: Mrs SHATRAJ Dashurie. Tel 00 355 6922 19607
• Thumana Commune Council offices; Thumana Village. Contact: Mr MIHA Konstantin. Tel. 00 355 6940 60129
  
  Additionally the executive summary is available on the EBRD internet sites at www.ebrd.com, a full copy of the ESIA is available from the World Bank InfoShop:
  
  World Bank InfoShop
  1818 H Street, N.W., Room J1-060
  Washington, DC 20433
  USA
  Telephone: (202)-458-4500 (USA, 9:30am – 3:30pm EST)
  Fax: (202) 522-1500 (USA)
  E-mail: pic@worldbank.org

Monitoring and reporting

The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports prepared for the project covering:

(i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, and

(ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

The Bank will undertake monitoring of the Project, inclusive of site visits by Bank staff as well as independent audits and an additional commissioning audit once the plant has been constructed.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

None.

Company Contact

Mr. Lefteris Garis
Country Manager,
Durresi Street (Ex-Uzina Tirana)
BLDG “Lim-Em”, Section 4D, 1st floor
Tirana, Albania

Tel: +355 423 0402
Tel:  00 355 427 4778

For Project related questions please contact:

Social Issues: Contact - Mrs Dobi Teuta. Tel 0 355 6920 90547
General questions on the Project. Contact: Mr Bylyku Adrian. Tel.: 00 355 6920 93726

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.

Last updated 23 April 2010