Displaying items by tag: African Development Bank

Guinea: Diamond Cement Guinea has been awarded a US$22.5m loan from the African Development Bank (AFDB) to build a 0.5Mt/yr cement grinding plant at Souguta. Overall the AFDB has pledged around US$37.5m for the project to the cement producer’s owner Wacem, according to African Manager financial news service. The AFDB previously part-financed a 0.5Mt/yr plant in Conakry with a value of US$15m.

Democratic Republic of Congo: Pakistan’s Lucky Cement is set to open its US$270m Nyumba Ya Akiba cement plant in Bas-Congo later in October 2016. The 1.2Mt/yr plant will be operated with Groupe Rawji, a local company, under the name CIMKO. It is financed by the African Development Bank, the International Finance Corporation, EKF and by Habib Bank among others, according to Bloomberg.

“We will take care of everything that can hinder your production, unfair competition, fraudulent imports, we will take care of that,” said Prime Minister Matata Ponyo Mapon to CIMKO executives in a show of support for the project at a recent meeting.

Ethiopia: Derba Cement is planning to build a US$300m expansion to its cement plant. The new plant in Chancho City, Sululta will have a production capacity of 2.5Mt/yr. The project is expected to take 18 – 24 months to complete once started, according to the Cihan News Agency.

The subsidiary of MIDROC is in talks with China National Building Materials Company to build the new plant. It is negotiating with the Development Bank of Ethiopia, International Financial Corp, the World Bank Group investment arm, the African Development Bank and the European Investment Bank to finance the project, according to Derba Cement CEO, Haile Assegide.

Haile added that Derba Cement’s decision to build an upgrade in a market with excess production capacity made sense due to the project’s cost efficiency. The new plant will use existing infrastructure to cut its costs. The plant will also benefit if the government implements the Second Growth and Transformation Plan (GTP II) increasing demand for cement.

Derba Cement has a 2.5Mt/yr cement plant at Chancho City. However, the plant is producing 0.5Mt/yr less than its capacity due to power supply interruptions. The Gilgel Gibe III Dam, that started producing electricity in late 2015, is expected to normalise the electric supply to the plant.