Project Approvals

Project Approvals SUB-SAHARAN AFRICA 55 Angola, Burkina Faso, Cameroon, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Madagascar, Malawi, Mali, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Seychelles, South Africa, Tanzania, Uganda, Zambia, Zimbabwe A S I A A N D T H E PA C I F I C 62 Bangladesh, Cambodia, China, Fiji, India, Indonesia, Republic of Korea, Lao People’s Democratic Republic, Malaysia, Nepal, Philippines, Sri Lanka, Thailand, Vietnam C E N T R A L A S I A , T H E M I D D L E E A S T, AND NORTH AFRICA 66 Algeria, Arab Republic of Egypt, Jordan, Kazakhstan, Lebanon, Pakistan, Tajikistan, Tunisia, Uzbekistan, West Bank and Gaza, Republic of Yemen EUROPE 69 Albania, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, FYR Macedonia, Moldova, Poland, Romania, Russian Federation, Slovak Republic, Turkey, Ukraine L AT I N A M E R I C A A N D T H E C A R I B B E A N 75 Argentina, Belize, Bolivia, Brazil, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Mexico, Nicaragua, Panama, Peru, Venezuela 54 1998 P R O J E C T A P P R O VA L S (in millions of U.S. dollars) Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Sub-Saharan Africa ANGOLA Fábrica de Lixivia Corasol Limitada–Flecol, a small detergent maker, will expand into the production of bath soaps, laundry detergent, and candles for the domestic market (AEF). B U R K I N A FA S O 0.61 – – – – 0.61 2.1 Société de Transports et de Commerce Bogoya et Frères, a transport company, will expand and improve coverage of its national long haulage and international markets by acquiring 15 vehicles and building a maintenance garage and spare parts warehouse (AEF). Société Générale de Banques au Burkina, a small bank that provides basic commercial services to lower-income individuals and small traders, will be privatized and reorganized with foreign shareholders. CAMEROON – – – 0.36 – 0.36 0.9 – 0.38 – – – 0.38 0.5 NOSA will establish a new plant to produce laundry soap, using locally produced palm oil as its main raw material (AEF). Pecten Cameroon Company will reduce expected declines in Cameroon’s oil production by improving recovery from mature oil fields and initiating production from marginal fields. CÔTE D’IVOIRE – – – 0.46 – 0.46 1.6 75.00 – – – 190.00 265.00 265.0 Berdam International SARL will rehabilitate its feedmill facilities and build new capacity to produce chicken feed and poultry meat. The project will boost corn production and pass on lower prices to consumers. The company will offer advice to chicken farmers (AEF). Block CI-11 Hydrocarbon Development—IFC will increase its FY97 equity investment in this oil venture to an authorized limit of $48.7 million. Cinergy S.A. will build two 150 MW turbines in Azito on a BOOT basis to be fueled with local natural gas, and an electricity transmission line. The project will become one of the lowest-cost power generators in Africa. Collège Privé Les Pitchounes will establish a secondary school that will pioneer activity-based teaching methods at moderate prices (AEF). Drop Ivoire will establish an integrated production system for mineral and carbonated water, with a capacity of 4,000 bottles per hour (AEF). Foxtrot Block CI-27 Gas Project will develop offshore gas reserves and deliver 50 million–100 million cubic feet per day of gas by pipeline to the domestic market, primarily to provide fuel for power generation. Industrie et Négoce Ouest Africain will build a cocoa conditioning plant to prepare raw beans for export quality standards (AEF). – – – 0.52 – 0.52 1.3 – 5.00 – – – 5.00 5.0 35.00 – 8.50 – 35.00 78.50 171.0 – – – 0.37 – 0.37 0.9 1.26 – – – – 1.26 3.2 30.00 10.00 – – 40.00 80.00 166.3 – – – 0.51 – 0.51 2.1 AEF Africa Enterprise Fund SEF Small Enterprise Fund P R O J E C T A P P R O VA L S 55 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost SOCOPRIM S.A. has a 30-year state concession to design, build, and maintain the Riviera-Marcory Toll Bridge over the Ebrié Lagoon in Abidjan. The new toll bridge and new access roads will ease commuter traffic congestion. GAMBIA, THE 29.84 – 4.97 – – 34.81 155.0 Ndows’ Group of Schools will build a middle and high school and upgrade existing primary school facilities (SEF). GHANA – – – 0.24 – 0.24 0.5 Ecobank Ghana Limited will organize a securities-based term financing program for 15 local corporates through a loan guarantee. The transaction will contribute to the development of a local corporate debt market. Network Computer Systems, Ghana’s service provider of the Internet and the Society for Worldwide Inter-Bank Financial Telecommunications (SWIFT), will expand to offer additional services in electronic data interchange (AEF). Plantation Resources Limited will rehabilitate and modernize 3 coffee plantations acquired through privatization. Plans include a new irrigation system. This project will transfer coffee management know-how and generate foreign exchange (AEF). GUINEA – – – 8.00 – 8.00 8.0 – – 0.67 – – 0.67 1.2 0.50 – – – – 0.50 1.1 Agro Investment Company S.A. will change irrigation technology to better control fruit quality, increase yields, and become more competitive in European markets (SEF). Alex-Socatrag, a maintenance garage, will modernize and expand to increase efficiency and better support a local mining operation. Its revenue sources will be diversified by developing nonmining business (SEF). Groupe Scolaire Hamdallaye, a private primary school, will establish a private secondary school in a lower-income neighborhood. It will offer disciplined, quality education, including computer and English instruction in small classes, and operate an in-service teacher training program (SEF). Société Guinéenne d’Hôtelerie et d’Investissements received new investment and restructuring of a FY93 project that privatized and renovated the Grand Hôtel de l’Indépendence in downtown Conakry. GUINEA-BISSAU 0.20 – – – – 0.20 0.5 1.30 – – – – 1.30 2.6 – – – 0.10 – 0.10 0.2 – – 0.27 – – 0.27 3.1 Banco de Africa Occidental, S.A.R.L. will establish the first private bank in Guinea-Bissau to provide a full range of banking services. Guinébis-Guiné Bissau, Seguros, S.A.R.L. will establish an independent insurance firm focusing on general insurance as part of the privatization of Guinea-Bissau’s former social security agency. – 0.35 – – – 0.35 2.3 – 0.13 – – – 0.13 1.4 56 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost SITEC, which provides computer sales and maintenance for companies, will build a center where secondary graduates and employees will be trained to meet the country’s technical needs (SEF). K E N YA – – – 0.30 – 0.30 0.8 AAR Health Services Limited, a managed health care organization in East Africa, will undergo expansion. The project will improve health care quality and lower costs by introducing competition and providing many with first-time medical coverage (AEF). Development Bank of Kenya Limited will on-lend foreign exchange term-finance to export-oriented enterprises in productive sectors of the Kenyan economy. Grain Bulk Handlers Limited will build and operate the first modern bulk handling and storage facility in Mombasa for imported grains and fertilizers. The project is designed to relieve port congestion and reduce spillage. Locland Limited will expand its horticultural production facilities to include greenhouse-grown sweet peppers and eustoma flowers (AEF). MADAGASCAR – 0.50 – – – 0.50 1.0 10.00 – – – – 10.00 10.0 7.00 – 3.00 – – 10.00 32.0 0.60 – – – – 0.60 1.5 State Bank of Mauritius-Madagascar will establish a new bank to provide a full range of commercial services. The project will transfer important know-how to contribute to development of trade and capital flows in the Indian Ocean rim. Tami Knitwear S.A. will manufacture 1 million knit garments a year for export to Europe and North America. The new factory will generate foreign exchange, create 1,300 new jobs, and add value to locally produced cotton yarn (AEF). M A L AW I – 0.75 – – – 0.75 6.0 0.98 – – – – 0.98 3.8 Housing Finance Corporation of Malawi Limited is the first private housing finance institution in Malawi. Its main business will be to provide mortgage loans for housing in the urban centers. Intermarket Discount House (Malawi) Limited will establish the first discount house in Malawi to trade and make markets in treasury bills, bankers’ acceptances, commercial paper, and other instruments, thereby developing Malawi’s money markets. Ivy League Developments T/A Ufulu Gardens will develop a shortto medium-stay residential complex of 17 bungalows (AEF). MALI – 0.30 – – – 0.30 3.0 – 0.50 – – – 0.50 2.5 0.31 – – – – 0.31 0.9 Société Industrielle d’Emballage et de Conditionnement will improve its production efficiency of liquid cleaner, detergent, and plastic bottles, and establish a plastic bag production factory with annual capacity of 578 tons (SEF). – – – 0.50 – 0.50 1.3 P R O J E C T A P P R O VA L S 57 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost MOZAMBIQUE Banco Internacional de Mocambique, Investimentos-SARL, the country’s first private investment bank, will provide investment banking services including privatization, corporate restructuring, and capital market services. Joao Jamal e Filhos Lda (JJF) will set up a factory to manufacture special metal panels for use in construction of affordable buildings, particularly houses, hospitals, and schools (SEF). NAMIBIA – 0.30 – – – 0.30 2.0 0.24 – – – – 0.24 0.5 Pescanova Holdings of Namibia Limited—IFC will provide a risk management facility to hedge currency risk in the FY95 and FY96 projects that expanded fish catching and processing operations. NIGERIA – – – 0.75 – 0.75 0.8 Ansbby Nigeria Limited will establish a domestic gas filling plant at Port Harcourt in response to the government’s effort to encourage the use of environmentally sound fuels such as gas for domestic and industrial consumption (AEF). Bailey Bridges Nigeria Limited will acquire, install, and operate a 150-ton Mabey Pontoon Ferry for 5 years (AEF). Minaj Printers Limited will become a full-service printer by acquiring modern printing equipment. This will enable the company to finish jobs that are currently outsourced (AEF). Trans-Nationwide Express Plc., a courier company, will upgrade and strengthen its courier infrastructure and operations base, revitalize its freight forwarding and shipping business, and install a computerized tracking system (AEF). R WA N D A 0.10 – – – – 0.10 0.3 0.68 – – – – 0.68 1.1 0.50 – – – – 0.50 1.4 – – 0.15 – – 0.15 1.1 Highland Flowers Limited will grow roses for export to Europe. The project will create 274 new jobs, more than half to go to local widows. It will generate foreign exchange and encourage start-ups of other nontraditional exports (AEF). SENEGAL 0.53 – – – – 0.53 1.9 Groupe Scolaire Fanaicha will upgrade, equip, and expand its school system to gain classrooms, dormitories, language and science laboratories, a library, and a cafeteria. Reasonably priced, it will enroll 900 boys and girls a year (SEF). GTi Dakar LLC—IFC augmented its investment in this FY97-approved 50 MW combined cycle power plant due to a cost increase. Senegal-Tanneries S.A. will collect fresh salted skins for processing into leather for export to Europe. The project will generate foreign exchange and spur the growth of herd populations (SEF). – – – 0.25 – 0.25 0.5 – 0.22 – 6.85 11.84 18.91 74.21 0.40 – – – – 0.40 2.0 58 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Société d’Exploitation des Ressources Thonières received a loan increase for a FY96-approved tuna fishing project (AEF). Société Sénégalaise des Phosphates de Thiès, under its new owners, Tolsa S.A. of Spain, will upgrade its clay mining operations to boost production of attapulgite by more than 50% by 2000. SEYCHELLES 0.21 – – – – 0.21 1.3 3.00 0.90 – – – 3.90 9.6 Seychelles International Mercantile Banking Corporation Limited (NUOVOBANQ) will on-lend to local private enterprises for trade and project finance, about half in foreign currency. IFC’s loan is also intended to accelerate the bank’s privatization. SOUTH AFRICA 10.00 – – – – 10.00 10.0 Constantia Days Inn Hotel Pty Ltd. will establish and operate a limited service hotel (AEF). Credit and Savings Help Bank (Cashbank) will receive a randdenominated loan to meet increased demand for its products and services. Cashbank serves the banking needs of low-income communities. Eerste River Medical Center will build and operate a new 89-bed medical center near Capetown (AEF). Green Charcoal (Pty) Ltd. will build a plant to produce high-quality lump charcoal for export, using the environmentally friendly “retort” technology. The raw material will be wattle trees, considered an alien species and nuisance (AEF). Lesedi Private Hospital (Proprietary) Limited will establish a 9-bed ICU facility in its existing hospital to become 1 of 2 hospitals in Soweto with an ICU (AEF). Network Communication Solutions (Proprietary) Limited, a network solutions company offering technical expertise and networking hardware, will expand its product base to include PBX with computer telephony integration features (AEF). New South Africa Pizza Investment Company will expand its Domino’s Pizza stores in South Africa from 2 to 21, and add 2 raw material supply stores (AEF). Poco Foods (Pty) Limited, a producer and distributor of potato and corn snacks, will increase its output and product range and build a new warehouse (AEF). Shastean Investments Ltd. T/A Hydrotec, a vegetable and prepared salads producer, will transfer management and ownership to previously disadvantaged groups (AEF). – – 0.36 – – 0.36 1.2 10.00 – – – – 10.00 10.0 – 0.18 – – – 0.18 0.9 – 0.09 0.89 – – 0.98 2.7 – – 0.26 – – 0.26 0.6 – 0.16 0.15 – – 0.31 0.7 – – 0.78 – – 0.78 1.8 0.87 – – – – 0.87 2.0 0.48 – – – – 0.48 1.1 P R O J E C T A P P R O VA L S 59 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost The Succession Fund and Succession Management Company will establish a private equity fund of rand 5-15 million (approx. $1-$3 million) targeting small companies with expansion needs. An important goal will be to encourage established businesses to open succession opportunities to members of previously disadvantaged groups. Unicell Paper Mills (S.A.) (Pty) Limited will receive a rand loan to install and operate an integrated tissue paper mill including a deinked pulp mill and converting lines. The plant will stimulate the collection of waste paper for recycling. TA N Z A N I A – 7.60 – – – 7.60 31.0 12.00 0.05 3.00 1.70 15.00 31.75 47.3 Blue Bay Company Limited T/A Blue Bay Beach Resort will build a 92-room beach resort, targeting European tourists. The project will create about 70 jobs and generate foreign exchange (AEF). Drop of Zanzibar Ltd. will establish a mineral water processing and bottling plant on a 33-year government concession. The plant will produce up to 2,300 bottles per hour, hire 45 people, and save foreign exchange now spent on imports (AEF). Jubilee Insurance Company of Tanzania will establish one of the country’s first private diversified insurance companies, thus filling an important institutional gap. JICT will provide general (nonlife) insurance and enter the life insurance field in about 2 years. Maji Masafi Limited will expand its packaged juice mixing and packing plant. The project will create jobs and improve environmental and safety standards. It will also increase competition and introduce a new type of reasonably priced packaging (AEF). Neptune Flowers Limited will grow roses for export to Europe. The project will create about 288 jobs and generate foreign exchange (AEF). Tanzania Telecommunication Company Ltd., the state operator, will implement capital improvements, expedite its privatization, and more than double current service levels. Tanzania has 4 phones per every 1,000 people. UGANDA 1.50 – – – – 1.50 6.4 0.40 – – – – 0.40 1.3 – 0.30 – – – 0.30 2.0 1.00 – – – – 1.00 2.8 0.40 – – – – 0.40 1.4 – 20.00 – – – 20.00 136.2 Executive Investments Limited will build an 8-floor apartment building in Kampala. The project will ease the city’s lack of international quality residential space, essential to economic growth (AEF). Kampala Flower Growers Limited will grow roses for export to Europe. The project will start with 3 hectares under greenhouses, and expand to 6 hectares in the third year of operation (AEF). Mosa Court Apartments Limited will build an extension to its apartment complex in Kampala. The project will refurbish and build apartments, support facilities, and improve infrastructure. It will create 70 jobs and earn foreign exchange (AEF). 1.00 – – – – 1.00 3.1 0.50 – – – – 0.50 1.9 0.80 – – – – 0.80 2.9 60 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Ram Oil Limited will establish an integrated soap and vegetable oil manufacturing complex using locally procured oil seeds. The project will save foreign exchange now spent on imports and create 135 jobs (AEF). Skay Electronics Manufacturing (U) Ltd., an electric light bulb manufacturer, will install equipment to produce oxygen needed in the manufacturing process, frosted and colored bulbs, and improved packaging (AEF). Tilda (Uganda) Limited will privatize and rehabilitate its SinoUgandan state joint venture. Tilda produces milled rice, maize, and soya for local and foreign markets. The project will create jobs and teach small outgrowers new techniques. White Nile Dairies Ltd., a pasteurized milk producer, will establish an outlet for hygienic, raw milk in the districts of Jinja, Kamuli, Iganga, and Eastern Uganda (AEF). ZAMBIA 1.00 – – – – 1.00 2.7 0.22 – – – – 0.22 0.6 2.40 – – – – 2.40 6.4 0.30 – – – – 0.30 0.7 Amaka Cotton Ginneries Limited will set up a cotton ginnery to produce cotton lint for sale. Seed cotton will be purchased mainly from small-scale farmers through cotton outgrower companies (AEF). Drilltech Engineering Services Limited, a drilling company, will modernize and double its drilled water wells and consolidate mineral exploration drilling (AEF). National Insurance Company (Zambia) Limited will establish a general insurance company that initially focuses on general insurance and eventually enters life insurance. Premier Lapidary Limited will establish a factory to cut and polish gemstones for export. The project will create 87 jobs, generate foreign exchange, and transfer modern technology to Zambia (AEF). ZIMBABWE 1.30 – – – – 1.30 6.2 0.20 – 0.15 – – 0.35 1.0 – 0.40 – – – 0.40 1.6 – – 0.65 – – 0.65 1.6 Aberfoyle Farming Company (Pvt) Ltd. will establish a pasteurized milk processing plant with 10,000 liters per day capacity, in Norton, south of Harare (AEF). Belvedere Maternity Home (Pvt) Ltd. will build a new maternity clinic with 40 pre/postnatal beds, 2 operating rooms, and 4 delivery wards. The hospital’s existing 18-bed unit will be converted into an outpatient unit and same-day procedures center (AEF). Commercial Bank of Zimbabwe Limited, the country’s largest government-owned bank and third-largest financial institution, will undergo privatization through this project. Part of IFC’s shareholding will be divested to the bank’s staff. First Merchant Bank Zimbabwe Limited will provide on-lending of trade and project finance to export-oriented small and medium enterprises. 0.36 – – – – 0.36 0.9 – – 0.41 – – 0.41 1.9 20.00 7.80 – – – 27.80 27.8 15.00 – – – – 15.00 15.0 P R O J E C T A P P R O VA L S 61 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Inyathi Valley Motel and Rest Camp will establish a tourist rest camp, caravan park, and chalets in Victoria Falls (AEF). 0.40 0.17 – – – 0.57 1.4 Regional EASTERN AFRICA REGION AIG-East Africa Mutual Fund and AIG-East Africa Asset Management Company, East Africa’s first private sector asset management company, will provide fund management, investment advisory, and portfolio management services to local and foreign investors. – 7.65 – – – 7.65 51.0 Asia and the Pacific BANGLADESH GrameenPhone Limited will establish a nationwide GSM cellular network for 300,000 subscribers over the next 5 years in 24 major cities and village pay phones to eventually cover half the villages in Bangladesh. Industrial Promotion and Development Company of Bangladesh Limited, the country’s first private sector development finance institution, will expand and strengthen its balance sheet and overall corporate image in preparation for an IPO. Khulna Power Company Limited will build, own, and operate a 110 MW barge-mounted power plant to sell electricity to the state Bangladesh Power Development Board. Lafarge Surma Cement Ltd. will build and operate an integrated dry process cement plant in northeast Bangladesh. CAMBODIA 20.00 2.50 – – – 22.50 124.4 10.00 – – – – 10.00 25.0 22.50 3.30 – – 29.40 55.20 103.2 35.00 10.00 – – – 45.00 240.0 Cambodia Power Company will build, own, and operate a 62 MW naphtha-fired power plant in Phnom Penh to sell its output to the national utility. CHINA 15.00 – 4.30 2.00 45.20 66.50 86.0 Chengdu Chemical Company, Ltd. (CCCL), China’s leading manufacturer of potassium-based chemicals, will expand production capacity to improve its economies of scale and meet increasing demand. Chengxin-Fitch IBCA Credit Rating Company, Ltd., will establish, through a joint venture, the first credit rating institution in China to provide credit rating services in accordance with international norms. Eureca Corporation Limited will establish a network of subsidiary companies to produce chocolate products and improve the variety and quality of food products. Jiangsu Coline Chocolate Products Co., Ltd., a Sino-foreign joint venture, will produce a wide range of chocolate products and cereal bars for the local market. It will provide state-of-the-art technology and training. 7.40 3.20 – – 8.60 19.20 29.7 – 0.36 – – – 0.36 2.4 – 3.00 – – – 3.00 3.0 6.50 – – – – 6.50 15.5 62 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Leshan Scana Machinery Co., Ltd., a state-owned steel and iron works, is restructuring its ownership and increasing its capacity to produce iron and steel rolls and industrial components, by updating technology and introducing new management principles. Orient Finance Company received an A-loan increase for a FY97 project that on-lends to SMEs. Plantation Timber Products (Hubei) Limited received a B-loan increase for its FY97-approved fiberboard project. Shanghai Krupp Stainless Co. Ltd. will establish a cold-rolling mill with a capacity of 72,000 tons a year of stainless steel flats to be used in the construction and automotive industries. The project will lessen China’s dependence on imports. Wuhan International Container Transshipment Company Limited will build and operate an inland modern container port and transshipment facility, to enable manufacturers to move goods to coastal and international markets. Xiamen International Bank, the first Sino-foreign joint venture commercial bank, established in 1985, will expand banking operations to support joint ventures and local private enterprises that have difficulty accessing term funding. Zhejiang Coline Chocolate Products Co. Ltd., a Sino-foreign joint venture, will produce a wide range of chocolate products and cereal bars for the local market. It will provide state-of-the-art technology and training. Zhen Jing Leather Products Company, Limited will build and operate a new cowhide tannery and bovine leather garment plant that will contribute to the economic development of an interior region of China. FIJI 6.10 1.35 – – – 7.45 29.9 3.33 – – – – 3.33 30.01 – – – – 1.50 1.50 57.01 30.00 – – – 78.44 108.44 294.8 5.00 – – – 5.00 10.00 17.1 50.00 20.00 – – – 70.00 70.0 6.50 – – – – 6.50 15.5 4.50 2.00 – – – 6.50 15.0 Hillview Limited will redevelop the existing Reef Resort, expanding the facility to a 255-room hotel that meets international 4-star standards. INDIA – – 3.67 – – 3.67 24.1 Global Trust, a privately owned bank licensed after the liberalization of India’s banking sector, will provide trade and project finance to small and medium private export companies. IL&FS Venture Corporation Limited will establish and manage a private equity fund focused on investments in automotive ancillary services and related sectors. Infrastructure Development Finance Company Limited will on-lend to private infrastructure projects, concentrating in the power sector. Infrastructure Leasing and Financial Services Limited—IFC subscribed to a rights issue in this nonbank financial institution. 5.00 – 5.00 – – 10.00 10.0 – 5.74 – – – 5.74 42.0 – 20.00 – – – 20.00 286.0 – – 3.11 – – 3.11 40.0 P R O J E C T A P P R O VA L S 63 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Rain Calcining Limited—IFC subscribed to a rights issue in this new facility that will produce calcined petroleum coke in response to local market growth in aluminum production. RPG Communications Holdings Limited—IFC subscribed to a rights issue to finance a network buildout of cellular services and paging operations. TCW/ ICICI Private Equity Fund, L.L.C., will establish a $125 million offshore, closed-end venture capital fund to invest in unlisted equity-related securities issued by medium-size companies in India. INDONESIA – 0.84 – – – 0.84 16.6 – 4.40 – – – 4.40 19.5 – 10.00 – – – 10.00 125.0 P.T. Megaplast Jayacitra will build a plastic injection molding facility to manufacture videocassette shells for the local market. The project will enable Megaplast to diversify manufacturing capacity, increase production, and compete in the global market. KOREA, REPUBLIC OF 11.50 2.50 – – – 14.00 56.0 Hambrecht & Quist Korea Growth and Recovery Fund will establish a 10-year closed-end venture capital fund to invest equity in small to medium enterprises and some technical companies. Hana Bank, a small commercial bank, will improve its capital and liquidity position to withstand the impact of the Asian economic crisis. Korea Long Term Credit Bank, which specializes in long-term lending through domestic and overseas subsidiaries, will provide term funding and equity to withstand the impact of the Asian economic crisis. Korea Trade Enhancement Facility will establish a 3-year, $100 million revolving facility to confirm letters of credit of selected private commercial banks to facilitate trade flows between Korea and foreign partners. L A O P E O P L E ’ S D E M O C R AT I C R E P U B L I C – 30.00 – – – 30.00 125.0 20.00 22.80 30.00 – 80.00 152.80 330.0 – 3.93 25.00 – – 28.93 261.0 – – – 40.00 – 40.00 100.0 Belmont Hotel Investments (Laos) Ltd. will rebuild and modernize the former Settha Palace Hotel in Vientiane into a 4-star international standard property. The project will generate foreign exchange and create jobs (SEF). Burapha Agro-forestry Company Ltd. will produce laminated board for export to Europe and Asia. This project will allow farmers to generate income using land that is no longer suitable for food crops (SEF). Endeavour Embroidery Co. Ltd. will build a modern semi-automated embroidery plant to service the Lao garment export sector. This proven technology will enable local garment makers to attract orders at higher margins from European buyers (SEF). M A L AY S I A 1.00 – – – – 1.00 2.8 1.10 – – – – 1.10 2.9 0.18 – – – – 0.18 0.5 Golden Clay Industries will expand production capacity from 12 million to 24 million roof tiles a year. 7.50 – 3.00 – – 10.50 31.0 64 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Titan Hydro Vinyl (M) Sdn. Berhad will build a 100,000 ton-a-year polyvinyl chloride manufacturing plant in Johor to supply the domestic market. N E PA L 18.50 – 3.50 – 34.02 56.02 88.7 Bhote Koshi Power Company Private Limited received a syndicated loan increase and risk management facility to hedge interest rate risk for its FY96-approved run-of-river hydroelectric plant. Jomson Mountain Resort (Pvt.), Ltd., will build and operate a hotel in Jomsom. PHILIPPINES – – – 3.00 24.00 27.00 98.21 4.00 – – – – 4.00 8.0 Far East Bank and Trust Co.—IFC extended equity and a second line of credit to provide U.S. dollar term financing to restore investor confidence following the regional economic crisis. Hambrecht & Quist Philippines III will establish a 10-year venture capital fund to invest in private SMEs in and outside Manila, including Mindanao. The project will help develop Philippine equity capital markets as the SMEs become publicly listed. Marsman-Drysdale Agribusiness Holdings, Inc., will expand and upgrade its fruit and vegetable processing operation. The project will increase the land area under cultivation in bananas, asparagus, okra, and papaya, and upgrade processing facilities. Pryce Gases, Incorporated (PGI), the second largest industrial gas supplier in Visayas and Mindanao, will expand its liquefied petroleum gas distribution business. SRI LANKA 45.00 15.00 – – 15.00 75.00 75.0 – 7.50 – – – 7.50 38.0 15.00 – – – 10.00 25.00 35.3 10.00 – 3.00 – 5.00 18.00 50.5 Lanka Hospital Corporation Private Limited will build a 350-bed modern private hospital in Colombo offering general and acute-care services. This is among the first private direct foreign investments in the Sri Lankan hospital sector. Mercantile Leasing Limited will diversify its funding, write longer-term leases, and correct a maturity mismatch in its portfolio. IFC’s help will enable the company to write dollar leases for imported equipment. THAILAND 5.00 1.56 – – – 6.56 32.0 – – 1.80 1.71 – 3.51 5.3 Ayudhya Development Leasing Company Limited—IFC subscribed to a rights issue for a FY96-approved project to provide leasing services to SMEs. Bangkok Mass Transit System Public Company Limited—IFC approved an additional loan, as part of restructuring of FY95 project to build a mass transit system to alleviate traffic problems in the central business district. HMC Polymers Company Limited—IFC subscribed to a rights issue for a FY96-approved project to build a polypropylene plant. – 0.96 – – – 0.96 4.0 30.00 – – – – 30.00 1,000.21 – 1.84 – – – 1.84 2.1 P R O J E C T A P P R O VA L S 65 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost VIETNAM Binh An Water Corporation Limited has a 20-year BOT contract to supply 100,000 cubic meters of treated water per day to Ho Chi Minh City. This was the first BOT to be awarded in Vietnam. Vinh Phat Company Limited, a cut-make-trim garment manufacturer, will expand to increase production levels, particularly of exportable textiles. Vung Tau Energy Company Limited will build a 120 MW dual fuel (fuel oil/natural gas) power plant in southern Vietnam to sell electricity to Electricity of Vietnam. 12.50 – – – 12.50 25.00 38.2 0.30 – – – – 0.30 0.7 24.20 4.00 – – 49.00 77.20 112.6 Central Asia, the Middle East, and North Africa ALGERIA Arab Banking Corporation Algeria will establish an international commercial bank to serve the private sector. It will act as a model of modern banking techniques and promote competition. Société Générale d’Algérie, the country’s first joint venture bank, will provide modern banking services to the growing domestic private sector in Algeria. ARAB REPUBLIC OF EGYPT – 2.00 – – – 2.00 20.0 – 1.00 – – – 1.00 10.0 Alexandria Carbon Black Company, S.A.E. will expand its carbon black plant capacity in response to strong export demand from new and existing clients. This is designed to consolidate ACB’s position as a model of technology and performance. Alexandria National Iron and Steel Company, S.A.E. (ANSDK), will build a direct reduced iron-based integrated flat steel plant. The project will produce hot-rolled coils to serve a growing domestic market. JORDAN 7.50 – – – – 7.50 34.0 60.00 11.30 – – 75.00 146.30 628.0 Arab International Hotels Company will modernize and upgrade the Amman Marriott to compete with international standard facilities. The project will create 300 jobs during construction and 200 permanent jobs and generate tourist business. Cairo Amman Bank, the third largest bank in Jordan, will raise its paid-in capital to meet government regulations for strengthening the banking sector. Jordan Inter-Continental Hotel Project will refurbish, expand, and improve its hotel to meet current and future tourism growth. The project will generate foreign exchange and create jobs with attendant training. Jordan Investment Trust Plc will establish the first investment bank in Jordan. It will provide long-term private equity, investment in quoted investments, underwriting and private placement of debt and equity issues, and corporate finance services. – 3.17 – – – 3.17 19.0 – – 15.00 – – 15.00 15.0 10.00 – – – – 10.00 38.8 – 1.76 – – – 1.76 28.0 66 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Jordan Valley Co., Ltd. will expand existing chicken processing facilities to produce an estimated 10,000 tons a year of broiler meat. The project will introduce the integrated meat processing concept and contract with small and medium farmers. K A Z A K H S TA N 8.00 – – – 8.00 16.00 23.0 ABN AMRO Bank Kazakhstan Limited—IFC subscribed to a rights issue for a FY97-approved project to establish the first share registry company in Kazakhstan. Eximbank Kazakhstan, one of the country’s largest banks, will be privatized and restructured. Joint Stock Company Ispat Karmet, a flat steel producer, will restore capacity to its steel, power, and coal operations, expand product mix to higher value-added products, and improve environmental practices. Kazakhstan Construction Company, a masonry block manufacturer, will expand operations and increase annual production by adding 2 highcapacity, block-making machines and associated equipment. Kazkommertsbank—IFC provided a syndicated loan increase to a FY97approved project to broaden this commercial bank’s funding base and extend its project finance activities. LEBANON – 2.60 – – – 2.60 10.0 – 9.00 – – – 9.00 60.0 76.67 5.00 – – 100.00 181.67 832.5 0.90 – – – – 0.90 2.6 – – – – 30.00 30.00 30.0 Banque Audi S.A.L., a commercial bank, will obtain a capital increase by raising $75 million of 10-year subordinated Eurobonds. The first international subordinated bond offering in the Middle East, this will enable the bank to play an important role in the reconstruction of Lebanon. Idarat Investment Corporation, S.A.L., a diversified tourism company, will develop 2 hotels and 4 restaurants. In addition to creating employment and generating foreign exchange, the project will help restore Lebanon’s tourism industry, damaged during the civil war. Société Hôtelière de Vinci, S.A.L., will build a 33-room hotel located in prime area in Beirut, to be managed by Idarat. PA K I S TA N 10.00 – – – – 10.00 75.0 10.00 1.50 – – – 11.50 31.1 3.00 – – – – 3.00 6.51 Askari Leasing Limited, Crescent Leasing Corporation, Orix Leasing Pakistan, and Paramount Leasing, 4 private Pakistani leasing companies, will receive IFC credit lines to on-lend to local SMEs. Engro Asahi Polymer and Chemicals (Private) Limited will build a 100,000 mt/yr polyvinyl chloride (PVC) manufacturing plant at Port Qasim to serve a fast-growing local market. Pepcem—IFC increased its syndicated loan to this FY97-approved project to build and operate a greenfield, dry process cement plant. 25.00 – – – – 25.00 25.0 14.25 – – – – 14.25 83.0 – – – – 2.50 2.50 203.81 P R O J E C T A P P R O VA L S 67 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost TA J I K I S TA N Zeravshan Gold Company and Nelson Gold Corporation Limited will increase production from their Jilau open pit mine to produce about 100,000 ounces (3.1 tons) of gold a year. This will double the mine’s export earnings. TUNISIA 3.00 3.00 – – – 6.00 23.7 Banque Internationale Arabe de Tunisie will underwrite the first international equity offering from Tunisia. Success of this global depositary receipt (GDR) will be critical for Tunisian corporations wishing to tap international capital markets. Société Industrielle des Textiles (SITEX)—IFC subscribed to a rights issue for a FY86 textiles project. Tuninvest Private Equity Fund, an international venture capital fund, will take a significant and, in some cases, controlling interest in unlisted Tunisian companies. U Z B E K I S TA N – 5.00 – – 12.00 17.00 60.0 – 0.76 – – – 0.76 7.6 – 5.00 – – – 5.00 25.0 Bulungur Packaging Plant will reopen its plant, closed since November 1996 due to a shortage of working capital. A Pakistani company will purchase a majority stake. The plant expansion and modernization will boost capacity and diversify the product line (SEF). Uzbek International Management and Consulting Center will provide training courses and workshops for Uzbek managers in marketing, general management, and accounting (SEF). WEST BANK AND GAZA 1.29 0.30 – – – 1.59 3.3 – 0.24 – – – 0.24 1.1 Al-Ayyam Press, Printing, Publishing and Distribution Company will upgrade and expand its printing capacity. The project will also refinance the company’s medium-term debt, thereby reducing financial costs (SEF). Peace Technology Management Ltd. will establish an investment fund to invest in labor-intensive industries, whether located in the industrial estates or elsewhere in the West Bank and Gaza. Pharmacare Ltd. will upgrade and expand its pharmaceutical manufacturing capacity. The project will enable the company to operate more efficiently and increase sales in local and export markets (SEF). YEMEN, REPUBLIC OF 1.80 – – – – 1.80 5.2 – 20.20 – – – 20.20 201.0 0.45 – – – – 0.45 3.2 Radfan Ceramic and Porcelain Manufacturing Co. Ltd. will establish Yemen’s first plant using raw materials of clay, sand, limestone, and feldspar. This will reduce product pricing to an internationally competitive range. 3.80 – – – – 3.80 6.8 68 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Regional CAMENA REGION Arab Insurance Group, a leading insurance company, will be privatized with this $6.6 million underwriting and $10 million equity package. – 10.00 – – 6.60 16.60 255.0 Europe ALBANIA Anglo Albanian Petroleum Limited will partially rehabilitate Patos Marinza oil field using enhanced oil recovery. The project is expected to increase oil output, clean up past environmental damage, and, with a new export pipeline, generate foreign exchange. AZERBAIJAN 30.00 28.50 – – 50.00 108.50 275.2 Arkobank, Azdemiryolbank, AzeriGazbank, and Rabitabank, 4 banks, will receive IFC credit lines to on-lend to Azeri SMEs. Target sectors include transportation, food processing, light industry, and construction (SEF). Azerbaijan Bank will establish a new joint venture bank to offer a full range of commercial banking services to corporate and retail clients. Azer-Turk-ATOIL will build and operate a lubricating oil blending and packaging complex with a production capacity of 50,000 tons a year. Storage containers will be fabricated on-site. Baku Coca-Cola Bottlers Ltd. will upgrade bottling capacity, expand warehouse facilities, and improve its regional distribution infrastructure to meet larger-than-expected growth in soft drink consumption. In Azerbaijan, long-term financing for projects outside the oil sector is generally unavailable. BELARUS 3.40 – – – – 3.40 3.4 – 1.00 – – – 1.00 5.0 5.25 1.31 – – – 6.56 26.3 7.00 – – – – 7.00 21.2 ZAO Rautaruukki Belcolor will build and operate a coated steel production plant with design capacity of 80,000 tons a year. The project focuses primarily on the wall panel and roofing segments of the market. The company will export about 75% of output. BOSNIA AND HERZEGOVINA – 2.25 – – – 2.25 22.3 Akova Impex, d.o.o., will convert an existing building into a meat processing plant and cold storage facility. By producing 3,000 tons a year of fresh and frozen meats, the company will reestablish domestic production of processed meat and reduce reliance on imports (SEF). Bosnia and Herzegovina-Wood Sector Agency Credit Line will mobilize a credit line through local agent banks for on-lending to 8–12 mediumsize wood manufacturing enterprises. The banks will receive training. MDD Lignosper, a wood processor and furniture maker, will reestablish production lines destroyed by war. The project will enable the company to rehire 150 workers and restore contractual relations with Western furniture distributors (SEF). 2.09 – – – – 2.09 8.9 13.73 – – – – 13.73 16.5 2.30 – – – – 2.30 4.6 P R O J E C T A P P R O VA L S 69 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost BULGARIA Devnya Cement’s plant will be privatized, expanded, and upgraded, including installation of a new cement line. Production will boost foreign exchange earnings and serve as a positive example of the government’s ongoing privatization campaign. C R O AT I A 45.00 – – – 50.00 95.00 244.1 Alpe Jadran Banka d.d. will on-lend funding to SMEs as trade finance or as loans for equipment, expansion, and modernization. This project will lengthen the maturity of the bank’s funding base and deepen its institutional development. Belisce-Bel Tvornica Papira Poluceluloze i Kartonaze will rebuild and modernize its war-damaged paper manufacturing facility and bring it into environmental compliance. This project is important for the survival of the company, which employs 2,300 workers and exports two-thirds of its output. CZECH REPUBLIC 4.00 – – – – 4.00 48.0 13.73 6.04 – – 13.73 33.50 42.2 Duff & Phelps Czech Credit Rating Company will establish the country’s first credit rating agency. This will provide objective risk evaluations of debt securities and lead to greater transparency, investor protection, and lower costs for creditworthy borrowers. Nova Hut, A.S.—IFC will augment a FY97-approved project to restructure, modernize, and privatize this integrated steel works. This is the country’s first privatization without a strategic partner. ESTONIA – 0.08 – – – 0.08 0.5 – – – 12.00 – 12.00 12.0 Horizon Pulp & Paper Company will rehabilitate the country’s only large paper producer. The project will improve production quality and efficiency, introduce tissue products, and bring the company into environmental compliance. GEORGIA 4.50 1.50 – – – 6.00 20.1 Saaktsio Sazegadoeba Mina will produce high-quality glass bottles and glass packaging for domestic and regional markets. Its output of 56,400 tonnes a year will be used for packaging agricultural products, cosmetics, mineral water, and other beverages. TBC Bank will develop medium-term lending capacity with this credit line to be used for on-lending to private Georgian enterprises for trade finance, working capital, and project finance. This is the first credit line to a majority Georgian-owned bank without a government guarantee. H U N G A RY 6.32 2.50 – – – 8.82 25.7 3.00 1.00 – – – 4.00 4.0 Axon Rt., a leasing company that specializes in agricultural equipment, will expand its capital base, providing a source of financing for SMEs in the sector. – 1.14 – – – 1.14 4.6 70 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Duff & Phelps Hungarian Credit Rating Company will establish the country’s first credit rating agency to provide investors with objective risk evaluations of debt securities, lead to greater transparency and investor protection, and promote capital market development. Malev Hungarian Airlines, Rt., the national airline, will receive financing to reinforce its financial position before partial privatization through a public issuance of its common shares. The project also will help Malev reposition itself as internationally competitive. L AT V I A – 0.10 – – – 0.10 0.5 20.00 – 20.00 – 40.00 80.00 110.0 A/S Vereinsbank Riga will participate in a capital increase of a joint venture bank project approved in FY96 to provide financing for trade and wholesale banking activities. Dauteks will modernize the country’s only nylon-6 yarn and textiles company. The project will optimize existing plant, install new technology, and improve product quality. This will help the company emerge from insolvency and protect 3,400 jobs. MACEDONIA, FYR – 4.24 – – – 4.24 17.0 15.00 5.00 – – 10.00 30.00 83.5 Macedonian Telecommunications (MT) will modernize and expand its state-owned national and international telecommunications network before its partial privatization. A controlling interest in MT will be sold to a strategic investor. Stopanska Banka, FYR Macedonia’s largest bank, representing about 40% of the country’s banking assets, was privatized through this financing. The government asked IFC to find a strategic investor. POLAND 25.00 – – – 25.00 50.00 75.0 11.09 5.24 – – – 16.33 70.0 Bank Wlasnosci Pracowniczej S.A., a small regional bank that has successfully focused on lending to SMEs, will be privatized and expanded. This pioneering privatization involves an employee buyout. Global Hotels Development Group will develop and operate a chain of 3-star hotels under an agreement with Holiday Inn Worldwide. Intercell Spolka z o.o.—IFC will subscribe to a rights issue in a FY97 project to modernize and expand the production of Poland’s second-largest producer of unbleached packaging paper for commercial and industrial use. Paroc Polska Sp. z o.o. will modernize and expand its mineral wool plant to improve product quality and volume and environmental performance. Proceeds will allow the parent company to convert its roofing cement plant to asbestos-free technology. ROMANIA 4.99 2.00 – – – 6.99 10.0 3.20 3.60 4.00 – – 10.80 43.00 – 3.72 – – – 3.72 20.0 6.90 2.20 – – 7.40 16.50 35.0 Banc Post, in a step toward privatization, will improve its operating structure with the help of this IFC quasi-equity, thereby enhancing its chances of finding strategic investors. The quasi-equity will be partly convertible into shares upon privatization. – – 10.00 – – 10.00 10.0 P R O J E C T A P P R O VA L S 71 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Demir Bank Romania will establish a commercial bank to support the growth of Turco-Romanian trade and investment and facilitate the development of the Romanian banking sector. Foreign & Colonial Romanian Investment Company Plc will establish a financial company to invest in Romanian companies undergoing privatization. The company also plans to raise funds from local investors. Garanta Insurance Company will establish a new composite insurance company which will sell both life insurance and general insurance to individuals and corporations. This company will support the development of the Romanian insurance market. Krupp Bilstein Compa S.A. will modernize and expand its shock absorber plant to make a new range of products for the Romanian and European markets. The project will deliver new technology, open new new export markets, and create jobs. Krupp Compa Arcuri S.A. will manufacture suspension springs for supply to the wider European automotive manufacturing market. Mobil Rom—IFC increased the syndicated loan portion of a FY97approved project to build and operate a national mobile phone network in response to greater market success than anticipated at approval. Romanian-American Small Business Lenders Ltd. will provide mediumterm loans to small businesses. The project will fill an important gap in the Romanian financial sector. Participating local banks will receive training in small business lending. Romlease—IFC supported a leasing company by subscribing to a rights issue. R U S S I A N F E D E R AT I O N 5.00 3.20 – – – 8.20 35.0 – 10.00 – – – 10.00 100.0 – 0.60 – – – 0.60 3.0 2.77 – – – 2.77 5.54 11.9 7.78 – – – 3.34 11.12 30.4 – – – – 40.00 40.00 75.0 5.00 0.03 – – – 5.03 10.0 – 0.30 – – – 0.30 2.0 Alfa Cement Open Joint Stock Company—IFC subscribed to a rights issue for a FY96-approved project to expand local cement production and distribution. A.O. MOSENERGO, Russia’s largest regional utility, will expand and complete the upper and lower reservoirs of its Zagorsk pump storage hydropower station. This boosts capacity by 200 MW. A.O. Severstal, one of Russia’s largest steel mills, will build a cogeneration plant to produce electricity, steam, and hot water. AOOT Borsky Stekolny Zavod, Russia’s leading float glass producer, will improve its float production, expand its automotive glass processing lines, and implement environmental controls through this project sponsored by Belgium’s Glaverbel Group. Depository Clearing Company is establishing a centralized depository, clearing, and settlement house for the Russian equities market. This will strengthen Russia’s securities market infrastructure and improve market liquidity and efficiency. – 2.10 – – – 2.10 18.8 32.00 – – – – 32.00 180.0 25.00 – – – 67.00 92.00 102.0 – 15.00 – – – 15.00 59.0 0.50 0.05 – – – 0.55 1.1 72 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Elcoteq JSC, a pilot project, will assemble a limited range of microelectronic components to test the operating environment before establishing a manufacturing facility in Russia. Garanti Bank Moscow, a medium-size corporate bank, will expand its operations to primarily service trade and business flows between the Russian Federation and Turkey. OAO DReVo, a pilot project, assists farmers facing a lack of finance, deteriorating terms of trade, and low productivity. It will provide working capital, seed, fertilizer, expertise in modern agriculture practice, and equipment leases in exchange for a share of production. Trading experts will set up domestic and export sales. Ramenka OOO will build and operate 4 supermarkets with integrated mini-malls in suburban Moscow. The project will offer shoppers lowercost, high-quality food and household goods and introduce state-of-theart inventory management, marketing, and sales techniques. Toribank, a large universal bank that has gained prominence as a ruble clearing center for small and medium Russian banks, will expand its banking services and branch network. ZAO Pakenso will build and operate a corrugated box production facility in Balabanovo to produce 90 million sq.m. of corrugated board per year for conversion into customized boxes for the domestic market. S L O VA K R E P U B L I C – 0.10 – – – 0.10 0.4 5.00 3.00 – – – 8.00 15.0 – 0.90 – – – 0.90 3.0 36.00 – – – 48.00 84.00 145.0 – 13.50 – – – 13.50 13.5 6.00 1.50 – – – 7.50 38.5 Scametatra A.S. will build and operate a plant to manufacture molded plastic components for clothes washing machines. Plans call for acquiring 22 new and rebuilt plastic injection molding machines, a table top assembly line, and a process quality control unit (SEF). West Export Import Company v.o.s., a pharmaceutical import and distribution company, will expand its facilities and product inventory. The project will lead to more efficient distribution of medical supplies at affordable prices, even in remote regions of the Slovak Republic (SEF). TURKEY 2.27 – – – – 2.27 6.7 2.28 – – – – 2.28 5.9 Adana Cimento Sanayi ve Ticaret A.S. will modernize, upgrade, and expand its cement grinding facility. The project will reduce the company’s energy costs, ensure a stable supply of electricity, boost capacity, and improve both product quality and environmental performance. Alternatifbank A.S. will provide term finance to corporate clients and provide leasing finance to SMEs. Bayek Tedavi Saglik Hizmetleri ve Isletmeciligi A.S. will build and operate the 150-bed Bayindir Medical Center Beylikduzu and create approximately 600 new jobs. 15.00 – – – 10.00 25.00 88.0 10.00 – 5.00 – 25.00 40.00 40.0 26.00 – – – 10.00 36.00 62.9 P R O J E C T A P P R O VA L S 73 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Demir Finansal Kiralama A.S., Finans Finansal Kiralama A.S., Garanti Finansal Kiralama A.S., and Yapi Kredi Finansal Kiralama A.S.—4 leasing companies will receive IFC credit lines to on-lend to SMEs. Hidrojen Peroksit Sanayi ve Ticaret A.S. will build a manufacturing plant to produce hydrogen peroxide for the domestic market, replacing imports. Indorama Iplik A.S. will establish a production facility for high-quality blended man-made fiber yarns, the first of its kind in Turkey. Joint ventures of this type rarely have access to adequate long-term financing at reasonable terms. Ipek Kagit A.S., Turkey’s leading tissue paper manufacturer, will increase its production capacity to 87,000 tons per year. Isvicre Hayat Sigorta A.S.—IFC will subscribe to a rights issue to support this insurance company, which offers life and health insurance and pension products. Modern Karton Sanayii ve Ticaret A.S., a producer of corrugated packaging materials, will expand and modernize to compete with EU imports. As a consumer of wastepaper, the factory will stimulate paper recycling in Turkey. Osmanli Bankasi A.S. (Ottoman Bank) received assistance in structuring a securitized financing package, the proceeds of which are to provide term financing to clients, with 25 percent on-lent to SMEs. Pasabahce-Schott Zwiesel will establish a glassware manufacturer with a capacity of 114 million pieces a year. The project will serve the hotelrestaurant-catering sector and employ 470 people. Pinar Entegre Et ve Yem Sanayii A.S. will diversify its meat processing operation in response to growing domestic demand for poultry. A subcomponent will be building an organic fertilizer plant to process animal waste. Soktas Pamuk ve Tarim Urunlerini Degerlendirme Ticaret ve Sanayii A.S., Turkey’s leading manufacturer of color woven shirts, will expand and modernize. Turkiye Garanti Bankasi A.S. will provide medium-term funding for on-lending to Turkish companies by securitizing a syndicated loan in order to tap U.S. institutional investors, such as insurance companies and pension funds. Viking Kagit ve Seluloz A.S., a leading industrial and tissue paper manufacturer, will expand and modernize. The project will nearly double capacity by adding a second paper machine. 20.00 – – – – 20.00 491.5 12.00 – – – – 12.00 48.4 10.00 0.66 – – – 10.66 30.7 32.27 – – – 18.00 50.27 90.0 – 0.08 – – – 0.08 1.8 20.00 – – – 10.00 30.00 89.3 20.00 – – 4.00 80.00 104.00 104.0 16.43 – – – 16.43 32.86 64.0 11.00 – – – – 11.00 24.7 12.98 – – – – 12.98 33.0 20.00 – – 4.00 95.00 119.00 119.0 12.01 – – – – 12.01 28.5 74 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost UKRAINE Finansbank Ukraine, the first bank in Ukraine with majority Turkish ownership, is a new wholesale commercial bank providing services to Ukrainian, Turkish, and multinational companies operating in Ukraine. Joint Stock Commercial Bank Creditanstalt Ukraine will be a joint venture commercial bank established by Creditanstalt and AvalBank of Ukraine. The bank will be capitalized at Euro10 million (about $11 million) and will initially target corporates with Western partners and local exporters. 5.00 2.23 – – – 7.23 16.5 5.00 2.36 – – – 7.36 16.5 Regional EASTERN EUROPE Advent Central and Eastern Europe II will establish a successor to its private equity fund of the same name. ACEEII will catalyze investment by providing financing to SMEs in frontier economies such as Romania, Croatia, Moldova, FYR Macedonia, Bulgaria, and Ukraine. Black Sea Fund will establish a private equity fund to invest primarily in medium-size enterprises in the Black Sea region. This fund will bring much-needed equity capital and technical assistance and accelerate market development in the targeted countries. E.L.L. Private Equity Fund KB will establish a 5-year private equity investment fund to invest in Estonian, Latvian, and Lithuanian mediumsize companies. The fund will also help find strategic partners for investee companies. Romania and Moldova Direct Fund will raise $65–$90 million for equity investments in Romanian and Moldovan companies. Investee companies will receive technical assistance and enjoy cooperative relationships with international sponsors. – 15.00 – – – 15.00 150.0 – 10.00 – – – 10.00 50.0 – 10.17 – – – 10.17 80.0 – 15.00 – – – 15.00 75.0 Latin America and the Caribbean ARGENTINA Aguirre y Gonzalez S.A., a financial advisory firm, will expand its financial and strategic consulting services. The company specializes in advising SMEs on project finance, mergers and acquisitions, and financial restructurings. Asociación Unión Tamberos Cooperativa Ltda., a dairy cooperative, will on-lend to approximately 300 dairy farmers to boost productivity, reduce costs, and improve hygiene. Banco del Suquia will receive a syndicated credit facility that will provide longer-term lending to regionally based middle-market companies. Banco Mercantil Argentino S.A. will on-lend long-term funds to viable SMEs. 0.45 – – – – 0.45 0.9 12.00 – – – – 12.00 28.1 30.00 – – 2.50 50.00 82.50 82.5 20.00 – 15.00 – – 35.00 35.0 P R O J E C T A P P R O VA L S 75 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Fondo Agrícola de Inversión Directa 2003 and Unifund S.A. will establish a pluriannual direct investment fund to invest in agricultural production. The funds will be used to lease agricultural land and plant a wide variety of crops over 6 agricultural campaigns. Fundación Universidad de Belgrano, one of the oldest and largest private universities in Argentina, will expand and modernize its facilities. The project will also help fund a student loan program. F.V. S.A., Argentina’s leading producer of brass and metal fixtures, will expand production capacity, modernize production technology, and improve operational efficiency and safety. Hospital Privado de Córdoba S.A., a private hospital in Córdoba, will expand by building a tower, refurbishing existing hospital space, and improving its information and storage systems. Patagonia Fund will provide $55 million in private equity for midsize Argentine companies. The project will help develop fund management expertise, particularly in due diligence and environmental screening. Patagonia Mint S.A. will develop a rural mint plantation and mint oil distillery. The plantation will utilize modern irrigation and harvesting equipment. Production will primarily target export markets where mint oil is used for flavoring candy and toothpaste. BELIZE – 5.00 – – – 5.00 20.0 22.00 – – – – 22.00 49.0 12.00 – 4.00 – – 16.00 60.0 10.60 – – – – 10.60 21.2 – 30.00 – – – 30.00 80.0 5.00 – 1.00 – 5.00 11.00 18.5 Nova Companies (Belize) and Ambergris Aquaculture Ltd. will expand its shrimp farm and build a hatchery. The project is expected to create 85 jobs and provide export earnings of up to $10 million a year. It will also diversify Belize’s economy. BOLIVIA 6.00 – – – – 6.00 16.5 Banco Industrial S.A.— IFC will subscribe to a rights issue for a FY95approved project to expand this bank’s operations and increase funds for on-lending to SMEs. BRAZIL – 2.00 – – – 2.00 20.0 Banco Icatu will expand its underwriting operations for second-tier companies and strengthen its risk management procedures. Bulk Services Corporation will establish an integrated storage and maritime shipping system dedicated to the transport of frozen orange juice concentrate. The system comprises a shipping terminal, an unloading terminal, and a bulk vessel. Dixie Toga S.A., a packaging company, will invest to broaden its product range and reduce its operating costs, enhancing its ability to compete with foreign competitors entering Brazil. 30.00 – – – – 30.00 30.0 14.00 – – 0.30 7.50 21.80 55.9 – 15.00 – – – 15.00 53.0 76 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Empesca S/A Construcões Navais, Pesca e Exportaçao, Brazil’s leading exporter of shrimp, lobster, and catfish, will expand operations to meet increased demand. The company is also a leading exporter of processed beef and cashew nuts. Fabrica de Papel Santa Therezinha S.A., a medium-size producer of kitchen and bath paper products, will increase its production capacity. Ferrovia Sul-Atlântico S.A. will rehabilitate, maintain, and operate a 6,586-km freight railway network in southern Brazil under a 30-year concession. The project is part of the government’s privatization of the federal railways. Fertilizantes Fosfatados S.A., Brazil’s largest producer of phosphate and nitrogen fertilizers, will streamline production and logistics and expand its product line to meet new market conditions. Fras-le S.A., a leading manufacturer of friction materials for motor vehicle brakes, will improve its financial structure and expand production capacity. Freios Varga, S.A., one of Brazil’s leading manufacturers of brake systems, will modernize, expand production, introduce new technology, and improve operating efficiency in a 3-year program. Globo Cabo S.A.—IFC subscribed to a rights issue for a FY96-approved project to expand the nationwide cable television network. Icatu Equity Partners will establish a $200 million private equity fund that will seek influential minority equity positions in Brazilian mid-size enterprises. Industrias Arteb S.A., a leading manufacturer of head and tail lamps for the automotive industry, will modernize and expand its existing facility in São Paulo. Ipiranga Petroquimica S.A.—IFC subscribed to a rights issue in a FY97approved project to boost polyethylene and polypropylene production capacity to meet growing local demand for plastic. Lojas Renner, S.A., a regional apparel mass merchandiser, will modernize and expand by building 15 new stores and improving its information and technology systems. Randon S.A. Implementos e Sistemas Automotivos, a manufacturer of truck trailers and semi-trailers, will modernize and expand capacity from 45 to 70 vehicles per day, double its output of axles and suspensions, and build a small assembly plant in Argentina. Saraiva S.A. Livreiros Editores, a leading local publisher of educational and legal books, will pioneer the mega-bookstore concept in Brazil. The company also has a growing electronic data publishing business. Tecon Rio Grande S.A., a shipping terminal, will expand its handling capacity from 80,000 to 200,000 moves a year and improve overall service quality. One of Brazil’s first privately operated ports, Tecon serves as a model in its sector. 25.00 – 10.00 – – 35.00 71.8 25.00 – 10.00 – 45.00 80.00 200.9 35.00 – 10.00 – 45.00 90.00 248.2 20.00 – – – 60.00 80.00 218.0 10.00 10.00 – – 15.00 35.00 83.0 20.00 – 3.00 – 15.00 38.00 103.0 – 9.92 – – – 9.92 156.4 – 30.00 – – – 30.00 200.0 20.00 7.00 – – 20.00 47.00 118.2 – 0.09 – – – 0.09 0.1 16.00 4.00 – – – 20.00 89.2 7.00 – 3.00 – 15.00 25.00 70.2 15.00 3.00 – – – 18.00 42.6 7.50 – 5.50 – 26.00 39.00 69.5 P R O J E C T A P P R O VA L S 77 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Trikem S.A. will expand its polyvinyl chloride (PVC) and ethylene dichloride capacity to meet growing local demand for plastics. This is designed also to enhance the company’s cost competitiveness and improve environmental performance. Unibanco-União de Bancos Brasileiros S.A., Brazil’s third-largest bank, will on-lend to private sector infrastructure projects. Through IFC’s participation, these loans will be securitized and sold to institutional investors. Usina Hidreléctrica Guilman-Amorim S/A. received a syndicated loan increase for a FY97-approved project to build and operate a 140 MW hydroelectric plant. C O S TA R I C A 25.00 – – – – 25.00 116.0 40.00 – – – 250.00 290.00 290.0 – – – – 1.00 1.00 148.01 Ticofrut, S.A. will expand production capacity of its citrus processing plant from 55,000 to 120,000 boxes per day. DOMINICAN REPUBLIC 5.00 – 4.00 – – 9.00 19.9 Inversora Internacional Hotelera, S.A., will build the Flamenco Bavaro resort, an 853-room 4-star hotel near Punta Cana with restaurants, bars, a village shopping area, swimming pools, and tennis courts, capitalizing on the country’s strong growth in tourism. ECUADOR 6.30 – 7.70 – 21.70 35.70 56.0 Concesionaria DHM, S.A., will design, rehabilitate, maintain, and operate 2 road sections totaling 284 km near Ecuador’s coast. Part of the government road privatization program, the project was bid competitively. Favorita Fruit Company Ltd., a leading banana exporter, will upgrade a port facility for the handling of bananas, fertilizer, and cargo; expand banana plantations; and modernize the group’s cardboard box plant. E L S A LVA D O R 11.50 1.30 – – 15.00 27.80 50.5 10.00 5.00 – – – 15.00 66.3 AFP Previsión, S.A. will develop private pension fund management companies to manage mandatory and voluntary pension funds throughout Central America. Banco Cuscatlán, S.A., a large private bank, will on-lend to private SMEs in El Salvador and other Central American countries. The project will strengthen the company’s project finance analysis and environmental risk management capabilities. Baterías de El Salvador, S.A., a large car battery manufacturer and the region’s only modern car battery recycling facility, will expand and modernize. The project also will provide working capital and restructure short-term debt (SEF). G U AT E M A L A – 1.00 – – – 1.00 10.0 25.00 – – – – 25.00 25.0 2.00 – – – – 2.00 4.1 La Fragua, S.A., Guatemala’s largest retail supermarket chain, will open 80 new stores in Guatemala and El Salvador, modernize and refurbish existing facilities and operations, and open a state-of-the-art distribution center. 20.00 – – – – 20.00 124.1 78 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Orzunil S.A.—IFC increased a syndicated loan for a FY97 geothermal power plant. G U YA N A – – – – 2.00 2.00 68.0 Guyana Americas Merchant Bank will be established as Guyana’s first merchant bank to support development of the country’s private sector and capital markets, providing term finance as well as new financial instruments and services. Heritage Limited (Cara Lodge), a tourist lodge, will upgrade and complete existing quarters and purchase adjoining land to build 20 more rooms and a small conference facility (SEF). IDS Holdings Inc., Guyana’s only manufacturer of polysac bags, will improve its efficiency and competitiveness by obtaining new machinery, a computerized inventory and accounting system, additional working capital, and short-term debt restructuring (SEF). HAITI 7.00 1.00 – – – 8.00 25.0 0.68 – – – – 0.68 1.4 1.00 – – – – 1.00 5.0 MicroCredit National, S.A., the first Haitian financial institution dedicated exclusively to lending on a commercial basis to microenterprises, will be established. It will use proprietary software to keep close track of payments. HONDURAS – 0.50 – – – 0.50 2.0 Corporación Cressida, S.A. de C.V.—IFC provided a syndicated loan increase for a FY97 project to expand and modernize a soap, detergent, and tomato product producer. Electricidad de Cortes, S. de R.L. de C.V.—IFC provided a risk management facility to hedge currency risk in a FY95 project that supplies electricity to the state utility and industrial customers. Hillwood Investments, jointly with its two wholly owned subsidiaries, Multiplaza de Tegucigalpa S.A. and Inversiones Real S.A., will establish the first 5-star chain hotel in Tegucigalpa, as well as an adjoining shopping center. MEXICO – – – – 7.00 7.00 7.0 – – – 0.50 – 0.50 0.5 10.00 – – – – 10.00 40.1 AES Mérida III, S. de R.L. de C.V. will build a 484 MW dual fuel power plant near Mérida to sell its output to CFE, the state-owned electric utility. It will operate on natural gas or diesel fuel. Agropecuaria Sanfandila S.A. de C.V., Grupo Corporativo AVA S.A. de C.V., and Eficiencia Alimenticia S.A. de C.V., an egg and broiler producer, will initiate a 4-year investment plan to focus on 4 regional markets. Ayvi S.A. de C.V., a poultry producer, will improve its hatchery and broiler growing farms, build a rendering plant, and add a distribution center. 30.00 – – – 90.00 120.00 250.0 10.00 – – – 5.00 15.00 33.2 10.00 – – – – 10.00 20.7 P R O J E C T A P P R O VA L S 79 Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Consorcio Internacional, S.A. de C.V., (CIMA), an owner, developer, and manager of private health care facilities, will expand its hospital in Hermosillo and build another in Puebla. IFC equity will support hospital construction in Costa Rica through Consorcio Hospitalario Internacional, S.A. Forja de Monterrey, S.A. de C.V. will build an automated forge plant to produce large automotive components for heavy trucks and large diesel engines. The project expects to reverse a trend of declining forge capacity. General Hipotecaria, S.A. de C.V., is expanding its capital base. Grupo Calidra, S.A. de C.V., the largest lime producer in Mexico, will modernize and expand existing facilities and build a new plant to supply the construction industry, steel makers, and others. Grupo Financiero BBV-Probursa, S.A. de C.V.—IFC subscribed to a rights issue for a FY96-approved project to assist a financial group in restructuring its shareholding base and recapitalizing a banking subsidiary. Heller Financial (Mexico) S.A. de C.V.—IFC subscribed to a rights issue for a FY96-approved project to support this factoring company that provides working capital and management services to SMEs. Terminal de Cruceros Punta Langosta, Cozumel, S.A. de C.V. will build and operate a cruise ship terminal to reduce current bottlenecks. This will reinforce government efforts to open the port sector to private investment. ZN Mexico Capital Growth Fund Ltd. and ZN Capital Management Ltd., will establish a 10-year, $75 million private equity fund targeting Mexican SMEs. It will take significant equity interests in SMEs. NICARAGUA 14.0 6.00 – – – 20.00 64.7 13.00 3.00 – 1.00 13.00 30.00 54.0 – 12.00 1.20 6.00 – – – – – 10.00 1.20 28.00 1.7 43.0 – 1.32 – – – 1.32 225.0 – 0.82 – – – 0.82 13.5 4.00 1.00 – – 7.00 12.00 19.6 – 30.05 – – – 30.05 101.0 Casa Mántica S.A. and Inmuebles Diano Marina S.A. will open 3 new supermarkets in Managua, expanding the La Colonia chain. The project will also modernize 3 existing stores and introduce an integrated electronic point of sale system. Frutales del San Juan, S.A. (FRUTAN), will develop 2,000 hectares of orange groves and related infrastructure for frozen concentrate orange juice production in Costa Rica. PA N A M A 4.00 – 0.50 – – 4.50 9.9 2.00 1.00 – – – 3.00 13.6 ICA Panamá, S.A., will design, build, maintain, and operate a 19.5-km tollroad under a 30-year BOT contract. PERU 20.00 – 15.00 – 35.00 70.00 209.2 Agro Industrial Paramonga S.A. will be Peru’s first sugar estate rehabilitated by private investors. The project ensures the company’s survival, thus safeguarding jobs. Agroquayabito, S.A., will expand its diversified agricultural operations including asparagus, sugar cane, and processed tomatoes. 22.00 – – – 23.00 45.00 68.9 7.00 1.00 – – – 8.00 35.6 80 I N T E R N AT I O N A L F I N A N C E C O R P O R AT I O N Region/Country/Client/Activity IFC Loan IFC Equity IFC QuasiEquity IFC Other Syndications Total Project Total Financing Cost Corporación Wong Group, S.A., will build or renovate 22 supermarkets and megastores, enlarge a central warehouse, upgrade management computer information systems, and expand worker training. Latino Leasing, S.A., will diversify and extend its term funding sources to finance capital goods and other equipment needs of Peruvian SMEs. Up to 10% of the loan will be used to finance leases for microenterprises. VENEZUELA 25.00 – 5.00 – 60.00 90.00 159.3 10.00 3.00 – – – 13.00 13.0 Complejo Siderúrgico de Guayana, C.A.—IFC increased its syndicated loan for a FY95-approved project to expand production of a hot briquette iron plant. Telecomunicaciones Movilnet, C.A.—IFC provided additional funds for a syndicated loan approved in FY97 for a project to expand and modernize a national cellular network, nearly doubling the subscriber base. – – – – 60.00 60.00 60.0 – – – – 20.00 20.00 20.0 Regional LAC REGION BAC International Bank will on-lend funds to SMEs. Two-thirds will be on-lent through Banco de San José, Costa Rica, and Banco de América Central (BAC), Nicaragua. BAC will on-lend one-third to subborrowers in Guatemala, El Salvador, and Honduras. Latin America Enterprise Capital Fund, L.P., is a $175 million fund that will primarily make substantial minority equity investments in mediumsize, nonlisted companies throughout Latin America. Medical Systems Finance Holdings Limited is a joint venture that will engage in cross-border leasing of medical diagnostic imaging equipment and therapeutic systems to private hospitals, clinics, and physician groups throughout Latin America. 30.00 – – – – 30.00 30.0 – 24.00 – – – 24.00 175.0 15.00 2.00 – – 25.00 42.00 90.0 World Region Honeywell Energy Service Company Multi-Project Facility will invest over a 4-year period in up to 5 energy savings companies, which provide financing and energy efficiency-related services to private sector businesses and public entities to reduce their energy and maintenance costs. Honeywell and local partners are establishing ESCOs in Poland, Hungary, Bulgaria, the Russian Federation, and China. 35.00 25.00 – – – 60.00 240.0 1 Total project cost includes the project cost of an approved project(s) from a prior fiscal year. Note: For details on all IFC projects in the committed portfolio, see the IFC Portfolio, a companion publication issued simultaneously. P R O J E C T A P P R O VA L S 81