SPI Web Site v1.1
Creating Opportunity Where It's Needed Most
What We Do
AIP Policy in Detail
AIP's Added Value
IFC Projects Database
IFC Projects Database > Projects > Investment Projects
Access to Information Policy
AIP Policy in Detail
AIP's Added Value
Subscribe to Disclosure Documents
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.
Date SPI disclosed
November 20, 2006
Projected board date
December 20, 2006
Invested: July 30, 2008
Signed: January 31, 2007
Approved: December 21, 2006
View Environmental & Social Review Summary (ESRS),
The proposed project will support the expansion of the cement activities of the Vicat Group (Vicat), the third largest cement company in France, through a financing package to Sococim Industries (Sococim), its wholly owned subsidiary in Senegal. Sococim, which was acquired by Vicat in 1999, has been supplying the Senegalese market since the 1950s and has also been exporting its cement to the surrounding countries.
Based on anticipated growth in the cement markets of Senegal and Mali and Sococim’s need to enhance the technical performance of its existing facilities, Vicat has proposed an investment program in these countries. The capital expenditure for the project includes the following components:
- construction of a new 24 MW power plant;
- environmental upgrades to meet local, EU and Worldbank/IFC emission standards;
- capacity increase of a quarry, crusher, cement mill and bagging facility;
- replacement of one of the current clinker lines with a new dry process kiln clinker line with a capacity of 4,200 tons per day; and
- various other technological upgrades.
Project sponsor and major shareholders of project company
Vicat, present in seven countries with €1.8 billion in sales in 2005 and over 6,000 employees, manufactures cement, ready-mixed concrete and aggregates, and conducts other activities that are parallel or complementary to its core operations such as transportation of materials and production of building chemicals and paper. Vicat is listed on the Paris stock exchange with a market cap of over €2.5 billion.
Total project cost and amount and nature of IFC's investment
The total project cost is estimated at €145 million. The proposed IFC investment consists of an A Loan of up to €20 million. IFC Treasury will also facilitate a €30 million equivalent CFA denominated loan to Sococim from the proceeds of IFC’s CFA denominated bond issue.
IFC investment as approved by Board
25.13 million (USD)
IFC Investment (million USD)
* These investment figures are indicative
Location of project and description of site
Sococim’s cement plant is located in Rufisque, Senegal.
Anticipated development impact of the project
The project is expected to meet growing demand in the local and near-by export markets at a lower cost than the alternative imports. In addition, the project will create additional employment during implementation of the project and new indirect employment as well, while improving the environmental performance of the company. The project may have spill-over economic benefits, such as helping modernize the building materials and construction industry in the country and attracting other industries to the region.
IFC's expected development contribution
IFC’s role in the project consists of the following:
- IFC will be providing financial support through its long-term loan investment which is not readily available locally and more suited for much larger investments.
- The project will help to strengthen the company’s competitive position in Senegal and the neighboring countries through improved technical performance.
- IFC will assist Sococim in upgrading its environmental standards and bringing them in compliance with IFC’s environmental guidelines.
Environmental and social issues - Category B
This project is for the upgrading and expansion of an existing facility, started in 1947. In the past there have been environmental issues associated with the Company’s operations, particularly related to air emissions and traffic loads in the local community. The proposed project will address these issues and bring the project into full compliance with both Senegalese law and IFC standards through the application of proven technology and management procedures.
For inquiries about the project, contact:
+221 839 8888
+221 836 1137
Km 33 Ancienne Route de Thies Colobane Gouye Mouride
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
What We Do
News & Events