Middle East & North Africa
Egypt / Alex Dev-01/Wadi al-Qamar
Titan Group, an existing IFC client, is seeking to expand its Egyptian operations which consist of two entities: Beni Suef Cement Company (BSCC) and Alexandria Portland Cement Company (APCC). The plants have a combined production capacity of 3.5 million tons per annum (mtpa) and are engaged in an investment program to add a second integrated cement production line of 1.5 mtpa in BSCC, and various debottlenecking investments in both plants.
As per the IFC, its project with Titan Group for the expansion of their cement manufacturing in Egypt (#27022) was a EUR80 million equity investment in Titan’s investment holding company Alexandria Development Limited (ADL).
In April 2015, a complaint was lodged with CAO by Wadi al-Qamar community members who live in close proximity to APCC current or former employees of APCC, through the Egyptian Initiative for Personal Rights (EIPR), a local NGO. The complaint raises issues regarding the proximity of the plant to residential areas, and the effects plant pollution has on community health and safety. Other issues raised include compliance with national legislation, labor issues, and lack of information disclosure and community consultation, among others.
CAO found the complaint eligible for further assessment in April 2015 and an assessment trip was conducted in September 2015. During the assessment there was a lack of consensus amongst the parties to engage in a CAO facilitated dispute resolution process. Hence, in accordance with CAO’s Operational Guidelines, the case has been referred to CAO’s Compliance function.
A compliance appraisal was completed in July 2016. The appraisal concludes that the complaint raises substantial issues related to IFC's appraisal and supervision of the environmental and social impacts of the project. CAO has decided that a compliance investigation is warranted.
CAO's appraisal report was completed in July 2016. Terms of Reference for a compliance investigation were published on September 2, 2016. The compliance investigation is underway.
In January 2017, CAO released a communique outlining its investigation process.
- Project Name & Number
- Alex Dev Ltd 27022
- Global Manufacturing & Services
- Alexandria Development Limited (ADL)
- Middle East & North Africa
- Environmental Category
- 80 million euros
- Eligible: Completed
- Assessment Period: Transferred
- Under Appraisal: Completed
- Under Audit: In Process