62691 LONG-TERM PARTNERSHIPS WITH EMERGING PLAYERS India: Vicat Sagar Builds State-of-Art Cement Plant and Live-Work Community Employees of a new, IFC-financed, greenfield cement plant in Karnataka, India, won’t have long commutes: they will have the option of moving into a new live-work community that’s part of the design for the new facility, which is expected to be operational in 2012. The new cement plant, a joint venture between Vicat SA of France and Sagar Cements of India, will require minimal consumption of fuel power and water, with a carbon footprint that will be among the lowest in the industry—and the lowest carbon emitter in IFC’s cement portfolio. With the first of two lines with 2.7 million ton annual production capacity per line, the facility will help meet the country’s considerable need for new roads, housing, bridges, ports, buildings and other critical facilities, while creating 600 new permanent jobs. Several thousand more people will be employed during the construction phase, and as suppliers of goods and services to the plant and its workers. Plans for the $13 million residential community include a medical facility and a school for both children and adults, who will receive training on industry-related technology and processes. With domestic demand for cement expected to grow on average by 8 percent over the next few years, the project aligns with the country’s own efforts to bridge its considerable infrastructure gaps so that the benefits of India’s growth can extend to citizens across the income spectrum. The investment also represents another chapter in IFC’s long-time relationship with the Vicat Group—we partnered with this leading international firm on an award-winning project in Kazakhstan in 2008, as well as in Senegal in 2007. IFC Role and Additionality • $75 million debt financing toward the total of about $345 million project cost • Mobilizing additional sources of financing: IFC efforts were key at a time when credit markets remain tight to raise long term financing of EUR55 million from commercial banks and EUR80 million from other Development Institutions • Reducing energy consumption for significant environmental benefit: the new facility will set a new standard for lower fossil fuel consumption and reduced carbon footprints for India’s cement industry • Bridging infrastructure gaps: increased cement production will help the country meet growing infrastructure demand in the region of the project • Improving quality of life for residents of the community: availability of more local jobs reduces the need to travel long distances in search of work, enhanced educational opportunities, convenient access to state-of-the-art health facilities For more information about IFC’s financial products and advisory services in the Cement sector, please contact: Eric Siew 1-202- 458-9625 or esiew@ifc.org, Georges Zahar 1-202-473-7098 or gzahar@ifc.org, Michel Folliet 1-202-473-4614 or mfolliet@ifc.org Printed on material that meets international environmental standards and is from sustainably managed commercial forests ifc.org 2010