Release date: 9 June 2005
Promoter – Financial Intermediary
Obajana Cement PLC, a subsidiary of Dangote Industries LimitedLocation
Description
Construction and operation of a new cement plant, on a greenfield site, with a rated capacity of 4.4 million tons per annum. The plant will be dedicated to the supply of the national market.
Objectives
The plant will produce cement to supply the national market. The plant, located within one of the less developed rural areas of Nigeria, will create significant value-added by processing low value local materials into cement. It will substitute about 60% of current cement imports and save Nigeria over USD 500m a year of hard currency.
Sector(s)
Proposed EIB finance (Approximate amount)
Up to USD 150 million.
Total cost (Approximate amount)
Project cost is expected to be of the order of USD 800 million.
Environmental aspects
An equivalent project in the EU would fall under Annex I of Directive 97/11. Independent consultants performed the relevant EIAs and the processes included a satisfactory level of public consultation. All studies included usual and acceptable mitigating measures for a cement plant.
A detailed environmental and social management plan was prepared and sufficient resources are allocated for its implementation. Any possible negative impact of the operation of the plant is satisfactorily mitigated and the proposed social management plan will contribute towards optimising the socio-economic development impact of the project.
The project is also attractive from an environmental point of view due to the use of natural gas in combination with modern cement production technology and is fully consistent with the Climate Change policy of the EU and the Bank to encourage climate-change friendly investments.
Procurement
The promoter supplies its main equipment and services for the project, amongst the few specialized international engineering companies, using negotiated procedures. This procedure, which is common and best practice in this industry, is in the best interests of the project.
Status
Signed - 12/08/2005
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).