Lafarge MPF Framework

Location:

Regional

Project number:

3140

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

C

Approval date:

03 Dec 1996

Status:

Complete

PSD disclosed:

04 Nov 1996

Project Description

A multi-project facility (MPF) of US$ 160 million with Lafarge to acquire, modernise, expand, construct and operate manufacturing facilities in the cement, lime, aggregates and ready-mix concrete sectors.

The project objective is to support the development of Lafarge's investment programme, which assists in the privatisation and the development of local companies in the eligible sectors, enhances their performance and improves their environmental standards.

Transition Impact

(i) Restructuring, privatisation and modernisation of the cement and related building materials industry; (ii) technological and management know-how transfer; (iii) improvement of environmental compliance; and (iv) provision of equity to a capital-intensive and highly cyclical industry sector.

The Client

Lafarge, founded in 1833, is the world's largest producer of cement and other building materials. The Group employs 83,000 people in 75 countries, with 2001 consolidated sales of EUR 13.7 billion. As of 4 July 2002, Lafarge Group's capitalisation was EUR 13 billion.

EBRD Finance

A multi-project financing in the form of an equity facility of up to US$ 160 million (EUR 145 million) for investments in cement, lime, aggregates and ready-mix concrete companies.

Project Cost

The MPF's investment programme indicates a total investment of EBRD and Lafarge of approximately EUR 450 million.

Environmental Impact

The multi-project facility was classified C/0. Lafarge has adopted a Group-wide environmental policy and formalised environmental procedures for the MPF Environmental Action Plans (EAPs). These will be developed as a result of the environmental due diligence and appraisal process and will consider environmental compliance, liabilities, risks and opportunities. They will become part of the business and investment plan for each project to be financed under the facility. Significant environmental, health and safety, and energy efficiency improvements are expected to be realised with the implementation of Lafarge's MPF investment programme. An annual environmental report will be submitted to the EBRD on the investee companies encompassed by the facility.

Technical Cooperation

None.

 

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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