IFC SUPPORTS CONSTRUCTION OF ALGERIAN CEMENT PLANT WITH UP TO $35 MILLION US DOLLAR IN FINANCING

Washington D.C., November 26, 2002?The International Finance
Corporation, the private sector arm of the World Bank, will support the
construction and operation of Algerian Cement Company (ACC), Algeria's
first private sector cement plant, with up to US$35 million in financing.

The investment reflects IFC's support for Algeria's ongoing transition to a
market economy.

    The investment in the ACC plant, located in the province of M'Sila in
central Algeria, 240 km southeast of Algiers, will consist of a loan of up
to $35 million for IFC's own account. The project, estimated to cost $260
million for a total annual cement production capacity of 2 million tons,
will use locally available raw materials and inexpensive energy sources to
produce and distribute cement in the M'Sila and neighboring region.

    Other funding sources for the project will come from the European
Investment Bank (EIB) with a foreign currency loan of up to $55 million and
Citibank Algeria leading a syndicate of local Algerian banks (Banque de
Développement Local, Banque Nationale d'Algérie, Caisse Nationale d'Epargne
et de Prévoyance and Crédit Populaire d'Algérie) with local loans
equivalent to up to $66 million. The EIB loan will be commercially
guaranteed by Citibank International PLC and Eksport Kredit Fonden (EkF),
the Danish export credit agency.

    The project's sponsor is Orascom Construction Industries (OCI), Egypt's
largest private sector construction company, which will invest $104 million
in the project. The investment in ACC reflects the sponsor's strategy of
regional expansion and will strengthen its position as a key player in the
Northern Africa and Mediterranean region.

    Sami Haddad, IFC's Regional Director for Middle East and North Africa,
said: "IFC's presence helped catalyze local and international financing for
the first cement plant fully owned by the private sector in Algeria.
Furthermore, it supports the Algerian government's efforts to attract
foreign investment in the non-oil sectors." Mr. Haddad added that "this
investment will benefit the country's infrastructure development and
construction efforts, which are critical to overall development of the
country."

      IFC's mission is to promote sustainable private sector investment in
developing countries, helping to reduce poverty and improve people's lives.

IFC finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding in
1956 through FY02, IFC has committed more than $34 billion of its own funds
and arranged $21 billion in syndications for 2,825 companies in 140
developing countries. IFC's worldwide committed portfolio as of FY02 was
$15.1 billion for its own account and $6.5 billion held for participants in
loan syndications.

Elika Trifonov

Phone: (202) 458-8357
Fax: (202) 974-4384
E-mail: Etrifonova@ifc.or

IFC press releases are available on line at http://www.ifc.org/pressroom