Devnya Cement Summary Of Project Information (SPI)       Project Name    Bulgaria - Devnya Cement            Region    Europe        Sector       Project No008642   Projected Board DateMay 16, 1998   Company NameDevnya Cement   Technical Partner and/or Major Shareholders    	The project sponsor is Iniciativas Estrategicas, S.L (IE).  IE is a Spanish corporation that is involved in the development and promotion of investments, particularly those related to the cement sector.  IE is 50% owned by Corporacion Gestamp, a Spanish industrial group controlled by the Riberas Family, which also holds a majority stake in the Spanish Gonvarri Group.  The Gonvarri Group is a prominent industrial group in Spain, with a turnover in 1996 of US$ 1.2 billion and interests in the automotive components, steel, and cement sectors.    Project Cost Including Proposed IFC Investment    	The estimated project cost is US$ 242 million.  The proposed IFC investment consists of an A Loan of up to US$ 30 million for IFCs own account, a B Loan of up to US$ 50 million for the account of Participants, a C Loan for IFCs own account, and an equity investment of up to US$ 5 million. The investment is structured to consist of two phases.    Location of Project and Description of Site    	The project is located in Devnya Cements current plant site near the port of Varna-West on the Black Sea coast.  The limestone quarry is 15 km from the factory site, and the limestone is transported to the plant by a conveyor belt 11 km in length.    Description of Company and Purpose of Project    		Cement is a key requirement for developing Bulgarias infrastructure.  The proposed investment would be IFCs first investment in the cement sector in Bulgaria.  The Project involves the renovation and expansion of Devnya´s operating existing capacity of about 1.0 million tpa cement plant.  The Project includes:  i) the privatization/acquisition of a majority stake in the Company from the government; ii) upgrading and expansion of existing equipment of the plant; and iii) the installation of a 1.0 million tpa dry process cement line.    	The Project will allow an inefficient and environmentally unsound plant to be modernized and upgraded.  The project is an export-oriented project and, as such, will increase the foreign exchange earnings of Bulgaria and will serve as a positive example for the Governments privatization campaign.  Moreover, the project will assist in the modernization of a post-privatized company.  The local staff of the Company will receive first hand training and direct experience in the management and operations of an international-standard cement plant.  Technology transfer will also occur in the construction of the project itself, where advanced project management techniques will be used, and local suppliers will be held to international standards.  Finally, the Project has an important environmental component which would enable the Company to comply with the World Bank guidelines upon project completion.    	IFC was instrumental to the structuring of the transaction, and provided advice on key market and technical issues.  IFC has significant experience in the cement sector in Europe and the Middle East, having financed cement projects throughout the region.  Drawing from this experience, IFC has provided substantial advice to the Project on technical and operational matters, which resulted in modifications and improvements to the Project.  IFCs engineer also provided the Company with constructive feedback and guidance regarding the additional cement line that the Company is installing.  The Company is unable to obtain long-term project financing from private sources without the presence of a multilateral institution such as IFC.  As such, IFCs involvement would provide a catalytic effect for private investment in Bulgaria.    Environmental Category and Issues    	This is a category B project according to IFCs environmental review procedures.  Environmental, occupational health and safety issues associated with this project include:  air emissions, treatment of process and domestic wastewater, solid waste disposal, fire prevention and protection, and workplace health and safety.  The Company has agreed to meet all applicable World Bank environmental and health and safety guidelines.  Air emissions from the process will be controlled by the installation of dust collectors.  Process water is recirculated therefore, there are no liquid effluent discharges to the environment.  The sponsor will implement occupational health and safety measures and will provide the relevant environmental information needed to assess and ensure that the ports will be built according to World Bank guidelines and policies.    The  is  from the InfoShop       Date SPI sent to InfoShop     April 16, 1998      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384    L:\SPI\SP008642.DOC  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).