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Roofings Rolling Mills Limited
Summary of Proposed Investment
This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Other Steel Products (Including Wire, Metal Sheets etc.)
Reg Manufact, Agri & Services, CAF/CLA
Date SPI disclosed
May 18, 2010
Projected board date
June 21, 2010
Invested: December 23, 2011
Signed: February 7, 2011
Approved: June 29, 2010
View Environmental & Social Review Summary (ESRS),
Roofings Limited (“Roofings”), the largest Uganda-based manufacturer of steel building materials, is implementing a 3-phase expansion program setting up a (i) Wire Galvanizing Plant; (ii) Hot Rolling Mill Complex and; (iii) Cold Rolling Mill Complex, all together the “Project”.
The Project will be implemented over 4 years (2009-12), under the Roofings subsidiary Roofings Rolling Mills Limited (“Sponsor” or “RRM”), a Uganda-based subsidiary of Roofings. Upon Project completion, RRM is expected to produce and sell steel construction materials (such as galvanized wire, high tensile reinforcement bars, cold rolled coils, galvanized iron coils and pre-painted galvanized iron coils) for both the local and export markets.
Project sponsor and major shareholders of project company
Roofings is owned by Mr. Sikander Lalani (founder and Managing Director) and his immediate family. Roofings was created in 1994 and is one of the top exporters in the Great Lake Region. Roofings employs 850 people and has an installed annual capacity of 110,000 Metric Ton (MT). RRM is owned 100% by Roofings.
Total project cost and amount and nature of IFC's investment
The proposed IFC investment consists of an A-loan of up to $25 million into RRM.
IFC investment as approved by Board
25 million (USD)
IFC Investment (million USD)
* These investment figures are indicative
Location of project and description of site
The Project will cover 30 acres in the new industrial park in Namanve situated approximately 15 kilometers from Kampala city centre. The site is close to good road links and has a working railway line running through. The industrial park in Namanve is a World Bank- sponsored project.
Anticipated development impact of the project
The Project is expected to have a strong development impact by: (i) providing consumers with increased access to high quality steel products in a 110-million people market; (ii) contributing to the upgrade of local business practices through the introduction of modern production technology; (iii) positively impacting other sectors such as construction and low-income housing; (iv) focusing on job creation and retention; and (v) encouraging other economic operators to move into the new industrial park.
IFC's expected development contribution
IFC’s additionality in the proposed investment will be as follows:
Provision of long term financing: IFC is expected to provide a long term senior loan that would best serve the long term nature of this expansion project;
Transfer of knowledge and expertise: IFC would share with Roofings its local and global steel sector and deal-structuring knowledge gained through the financing of similar projects in the region and globally; and
Help improve standards: IFC would provide guidance in the areas of environment, social management and corporate governance to the Sponsor.
Environmental and social issues - Category B
This is a Category B project according to IFC’s Environmental and Social Review Procedure because of the limited number of specific impacts that may occur are site specific, and those impacts can be avoided or mitigated by adhering to generally recognized performance standards, procedures, guidelines or design criteria.
The Sponsor is experienced in the manufacturing of steel products and is implementing internationally recognized quality, health, safety and environmental management systems at their existing operations. These systems will be similarly applied to the new expansion program. The existing development is located in an area which is considered acceptable for such operations, while the new expansion project is located in the Kampala Industrial Park, an area specifically designated for such operations on the outskirts of the city. Key environmental and social issues are addressed via the company’s management systems, and the company’s environmental and social performance will be strengthened through implementation of the project Environmental and Social Action Plan.
For inquiries about the project, contact:
Plot 126, Lubowa EstateEntebbe Road
Telephone: +256 (0) 312 340100
Fax: +256 (0) 414 200953
Mr. Sheikh Arif
P.B. 7169, Lubowa Esate, Entebbe Road,
Tel: +256 312-340100, +256 414 200952
Fax: +256 0414-20008
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Local access of project documentation
The ESRS, companion ESAP, Roofings EIA and independent review as undertaken by Golder Associates (Pty) Ltd., along with any further information required about the new operations, may be obtained from NEMA and Roofings, contact details below.
Plot 126, Lubowa Estate Entebbe Road
Mr. Waiswa Arnold
Director, Policy and Compliance Affairs
P.O. Box 22255
Tel: +256 414 251064/65
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