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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.