Kerbala Cement Manufacturing, Iraq, is to receive a US$70 million loan from the IFC, part of the World Bank Group, and US$20 million from Proparco, a development financial institution funded by the French Development Agency and private shareholders. The loan will enable Kerbala Cement, which is a joint venture between Lafarge and London-based equity group MerchantBridge, to renovate its state-owned plant near the city of Kerbala. The rehabilitation project will be carried out under a concession agreement with the Iraqi Government. IFC and Proparco will work together with Kerbala Cement to form a social and environmental strategy in line with international sustainability standards.
The IFC loan forms part of its initiative to stimulate Iraq’s private sector and help with the country’s reconstruction. The IFC has invested approximately US$500 in Iraq over the last two years.
“This financing will help address the cement shortage that Iraq is facing and help the country meet supply gaps in its infrastructure. It will also play a catalytic role in attracting other foreign investors to Iraq,” commented Guy Ellena, IFC Director for Manufacturing, Agribusiness and Services in Europe, Central Asia, the Middle East and North Africa.
Adapted from press release by Louise Fordham.