Dakar, May 28, 2019 – IFC and MIGA, members of the World Bank Group, today announced a $460 million debt and guarantee package to support the sustainable development of the Guinea Alumina Corporation bauxite project and associated rail and port infrastructure in Guinea.
The approximately $1.4 billion project, which is being developed by GAC, a wholly-owned subsidiary of Emirates Global Aluminium. The project is one of the largest foreign investments in Guinea. It involves the development of a 12-million-ton-per-annum bauxite mine, the expansion of multi-user rail infrastructure along the Sangarédi-Kamsar transport corridor, and the construction of a new export port terminal at Kamsar. The project promotes greater linkage between Guinea’s mining sector and global markets, helping the country establish itself as a world-class producer and exporter of bauxite.
IFC is providing a total loan facility of $330 million to the project including syndicated debt from seven commercial banks. MIGA has committed political risk guarantees of up to $129 million to the same commercial lenders. The total senior loan facility is $750 million. IFC and MIGA have played a lead role in setting environmental and social standards for the project, including working with the Government of Guinea and various stakeholders on biodiversity conservation, and will continue to monitor the project to ensure it progresses in line with IFC’s Performance Standards.
The project is expected to create around 1,000 permanent jobs. Construction is well advanced and more than 4,600 temporary jobs were created at peak and as many as 9,800 jobs are expected across the economy through the project’s local supply chain. The project is also expected to generate $50 million in government revenues on average each year. Additionally, IFC is working with GAC to implement a $4.4 million advisory services program through which GAC can increase its social and economic development interventions and enhance benefits to host communities. The advisory program leverages a decade of IFC’s experience in supporting responsible mining development in Guinea.
“We are happy to support the development of this project, which will help Guinea increase its exports and bolster local economic growth, including through the procurement of good and services from the domestic market and significant improvements to rail and port infrastructure.” said Sérgio Pimenta, IFC’s Vice President for the Middle-East and Africa. “Sustainable mining development represents an important economic opportunity for Guinea, which is home to a quarter of the world’s bauxite resources.”
“In addition, this project will unlock further investment into a sector of strategic importance to Guinea’s economy, while fostering advancement of other sectors as the projects’ supply chains are further developed.” said MIGA Director for Operations, Sarvesh Suri.
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders. Over the last three decades, MIGA has directly supported over $52 billion in investments in 111 developing countries.
In Washington DC:
Vamsee Krishna Kanchi, MIGA
Phone: +1 202 458 9771
Lawrence Henri Mensah, IFC
Phone: +221 338 597195