The proposed transaction provides additional support to the existing project, signed on 10 September 2004, through an update in the loan structure for mitigating the impact of the global financial crisis on the country's construction industry.
The Project is one of the few large foreign direct investments currently being undertaken in Albania. The FKCF project has, therefore, the potential to have a strong demonstration effect on other potential foreign investors showing the possibility to invest and grow in a difficult but improving investment climate. The Project will contribute through transfer and dispersion of skills and know-how to local employees. The Project will also contribute to improve corporate governance standards.
In addition, the Project substitutes cement imports by local production and contributes to increasing the size of the private sector of the Albanian economy.
Fushe Kruje Cement Factory Sh.p.k. was established on 14 September 2000 through the acquisition of the assets of Cement Manufacturing Enterprise of Fushe Kruje (the second largest cement factory in the country) by a consortium lead by Seament Holding.
Seament Holding owns 100% of the shares of FKCF.
Senior loan up to US$ 17,142,869.
Mezzanine loan up to US$ 4,285,714
US$ 130 million
Environmental and social due diligence was carried out in 2004, and was undertaken jointly with IFC. An Environmental Impact Assessment was undertaken and a Environmental Action Plan was developed. The project was categorised B/1.
Since signing EBRD has been monitoring this project regularly, though site visits and environmental reports, and in 2008 the Bank’s Evaluation Department carried out an detailed evaluation of the project.
Monitoring has confirmed that the project is operating in line the EU requirements for air emmissions and effluent discharge. The plant has switched from wet cement process to a BAT-complant dry process, although dust levels at the plant remain high.
Recognising that some members of the community are living too close to the plant, measures are being taken to address this in accordance with the provisions of the Bank’s policy. In the event of any retrenchment needed, EBRD is to be notified so that appropriate measures can be put in place.
Charles Bouri, CEO
Fushe Kruje Cement Factory Sh.p.k.
+355 4 2243 936/7/8
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