Lafarge Vostok



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

12 Dec 2006



PSD disclosed:

30 Oct 2006

Project Description

A multi-project facility (MPF) of EUR 300 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/or the development of local companies in the eligible sectors, enhances their performance and improves their environmental standards.


Transition Impact

(i) Setting standards for the modernisation and restructuring process of the cement and related building materials industry;

(ii) technology and know-how transfer;

(iii) improvement of environmental management; 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 80,000 people in 76 countries, with 2005 consolidated sales of EUR 16 billion. As of 30 September, Lafarge Group's capitalisation was EUR 17 billion.

EBRD Finance

Renewal of the Equity Multi Project Facility signed in 1996, increase in the amount of the MPF to EUR 300 million and extension to new countries of operation previously not included in the MPF.

Investment in a new sub-project in the Russian Federation for a total amount of up to EUR 70 million.

Project Cost

Total total project costs for the entire MPF are estimated at EUR 1050 million.

Total project costs under the fourth Sub-project, Lafarge Vostok, is EUR 607 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 which include the development of 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. The projects under the facility will be structured to achieve compliance with the relevant national environmental regulations and EU environmental standards. 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


Company Contact

Mark Rollinger, e-mail:


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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