Adana/Oyak Cement Summary Of Project Information (SPI)       Project Name    Turkey: Adana Cement            Region    Europe        Sector       Project No008537   Projected Board DateMay 23, 1998   Company NameAdana Cement   Technical Partner and/or Major Shareholders    	Adana Cement is a publicly traded company and is listed on the Istanbul Stock Exchange.  Adana Cements largest shareholder is Ordu Yardimlasma Kurumu (OYAK), a pension fund for the officers of the Turkish Armed Forces.     Project Cost Including Proposed IFC Investment    	The Project Cost is estimated at US$ 88.0 million.  IFCs proposed investment consists of an A Loan of US$ 15.0 million and a B Loan of 10.0 million.    Location of Project and Description of Site    	The Project is located at the Companys existing plant site in Adana, Turkey.  Adana Cement benefits from a strategic location that provides access to limestone and other key raw materials (limestone and clay quarries are at the factory site), plus access to transportation via a port within 100 km in Iskenderun.    Description of Company and Purpose of Project   (include IFCs Role and Development Impact)    	The Project involves:  i) the modernization of Adana Cements cement grinding capacity by the conversion of one raw mill into a cement mill; ii) the upgrading of raw material milling and blending facilities; and iii) the installation of a 30 MW captive generation plant to secure its electricity needs.  The Project will reduce Adana Cements energy costs, ensure a stable supply of electricity, provide additional cement grinding capacity, ensure better product quality, and provide some environmental improvements. The Project will be located at the Companys existing facility in Adana, Turkey.  Project completion is estimated by December 1999.    	The project provides an opportunity to support a growing company which, without IFCs participation, would not have access to adequate medium nor long-term financing.  Without IFCs investment, under the present economic environment in Turkey, Adana would be forced to rely on more expensive short-term financing which would squeeze its cash generation. More generally, by providing financing and mobilizing long-term funds from commercial banks, IFC demonstrates that limited-recourse financing is possible in Turkey, and creates a model for future transactions.  In addition to providing financing, IFC would support a project in Southeastern Turkey, a largely under-developed region (see below).     	Moreover, 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 advice to the Project on technical and operational matters, which resulted in some modifications and improvements to the Project.  From a broader perspective, IFCs role as a risk-taking multilateral institution provides comfort to other lenders and potential future investors.    	The proposed project is in Southeastern Turkey, a region which is largely under-developed and where there are large per capita income differences with Western Turkey. In this regard, IFCs investment would play an important role in assisting a Company whose modernization would have a substantial impact on the economic development of the region. The Project will have two major positive impacts on the cement sector.  First, it will boost competition, which will result in better quality cement and lower prices.  This will, in turn, lower building and infrastructure costs.  Second, it will help advance the process of phasing out the older production units which are energy inefficient and often detrimental to the environment.  Furthermore, the Project would improve the Companys export capability, allowing it more flexibility in exploiting market opportunities.  Finally, the Project has an important environmental component which would enable the Company to comply with all IBRD guidelines upon project completion.    Environmental Category and Issues    	This a category B project according to IFCs environmental review procedure.  The environmental issues associated with this project include: air emissions, treatment of wastewater, and revegetation of quarries.  Health and safety issues include accident prevention and employee exposure to noise.  Dust emissions from the recently completed precalcination line are currently well below the World Banks guidelines of 50 mg dust /Nm3.  The Project will bring all operations into compliance with World Bank guidelines at completion.	       The  is  from the IFC InfoShop.       Date SPI sent to InfoShop     April 23, 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  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).