FUSHE KRUJE CEMENT FACTORY

Location:

Albania

Project number:

33453

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

07 Sep 2004

Status:

Completed

PSD disclosed:

28 May 2005

Project Description

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.

Transition Impact

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.

The Client

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.

EBRD Finance

Senior loan up to US$ 17,142,869.
Mezzanine loan up to US$ 4,285,714

Project Cost

US$ 130 million

Environmental Impact

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.

Technical Cooperation

None.

Company Contact

Charles Bouri, CEO
Fushe Kruje Cement Factory Sh.p.k.
Fushe Kruje
Albania
+355 4 2243 936/7/8
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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