IFC and MIGA, two member institutions of the World Bank Group, announced a commitment of $ 460 million in debt financing and guarantees to support the sustainable development of the mining project. of the Guinea Alumina Corporation and the construction of road and port infrastructure in Guinea.
The project, costing approximately $ 1.4 billion, is being developed by Guinea Alumina Corporation, a subsidiary of Emirates Global Aluminum. It constitutes one of the largest foreign investments in Guinea, including the construction of a bauxite mine with a production capacity of 12 million tons per year, the expansion of a multi-user rail line on the island. Sangaredi-Kamsar axis and the construction of a new export terminal in Kamsar Port. This infrastructure will improve the integration of the Guinean mining sector into the global market and help strengthen the country’s position as a world-class producer and exporter of bauxite.
IFC is providing a US $ 330 million loan to the project, including syndicated debt financing from seven commercial banks, while MIGA is providing $ 129 million in political risk guarantees. The total priority loan is $ 750 million. IFC played a major role in establishing environmental and social standards for the project, including working with the Guinean government and several stakeholders involved in protecting biodiversity. IFC will monitor the implementation of the project and ensure that it adheres to the institution’s performance standards.
The project is expected to create about 1,000 permanent jobs. Construction work is well advanced and has created more than 4.6000 temporary jobs during peak periods and up to 9.800 jobs with local suppliers of the mine. The project will also generate an average of $ 50 million a year in revenue for the government. To enhance the impact of the project, IFC is also providing advisory services to the GAC through a $ 4.4 million program. As a result of this initiative, the GAC will be able to increase its economic and social support efforts to further support host communities. The program builds on IFC’s more than 10 years of experience in supporting the responsible development of the mining sector in Guinea.
“We are pleased to support the development of this project, which will enable Guinea to increase its exports and boost the local economy, notably through the procurement of goods and services from local suppliers and the considerable improvements that will be made to the railway infrastructure. port, “said Sérgio Pimenta, IFC Vice President for the Middle East and Africa. “Responsible development of the mining sector creates significant economic opportunities for this country, home to a quarter of the world’s bauxite resources.”
“This project will also attract more investment in a strategic sector for the Guinean economy while supporting the expansion of other sectors through the development of local supply chains.” Said Sarvesh Suri, Director operations of MIGA.
IFC, a sister organization of the World Bank and a member of the World Bank Group, is the leading international development institution dedicated to the private sector in emerging markets. Working with more than 2,000 companies around the world, we use our capital, expertise and influence to create markets and opportunities in the world’s most challenging regions. In fiscal year 2018, we provided more than $ 23 billion in long-term financing for developing countries, leveraging the power of the private sector to eradicate extreme poverty and promote shared prosperity.