Release date: 16 December 2005
Promoter – Financial Intermediary
DG Khan is one of the largest cement producer in Pakistan and belongs to the Nishat Group, a leading domestic industrial group with interests in the textile, insurance, manufacturing and banking sector.Location
Description
The project concerns the construction and operation of a cement plant on a greenfield site, next to the raw materials deposit, and dedicated to the supply of the national market. It will have an annual capacity of some 2.5 Mt of cement.
Objectives
The local production of cement will valorise domestic raw material (like limestone and clay), and contribute directly to the industrial development and the economic diversification of a particularly poor rural region. An increase in cement production capacity should assist Pakistan to maintain a low level of cement prices, essential for the development of its infrastructure and of affordable residential housing projects and the reconstruction following the earthquake of October 2005. The project is also consistent with the poverty alleviation and infrastructure development priorities of EU development cooperation with Pakistan, which is the third largest recipient of EU aid in Asia.
Comments
Manufacturing.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 35 million
Total cost (Approximate amount)
Project cost is estimated at about EUR 170 million, without working capital and interest during construction.
Environmental aspects
An EIA has been performed by an independant consultant. The plant is designed with state-of-the art cement technology, which will reduce both energy consumption and atmospheric emissions levels, in line with usual international standards. The existing plant of the promoter is ISO 14001 certified.
Procurement
Private sector project outside EU, for which EIB guidelines will apply, with fair and transparent procurement procedures, ensuring an appropriate selection of works goods and services, with an appropriate quality, at competitive price and in an a timely manner.
Status
Signed - 2/04/2006
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).