Project
Description
The project consists in building and operating the first chlor-alkali
plant in Syria, and will cover a substantial proportion of
national demand, presently met exclusively by imports. Demand
for caustic soda in Syria has reached some 39,500 tons in
2000 and has been growing at an average rate of about 4% p.a.
The other sub-products (chlorine, hydrochloric acid and sodium
hypochlorite) have followed similar growth patterns.
Project
Sponsors
The
main sponsors are Mr. Muhammad Omar Sabbagh, a very well established
Syrian industrialist from Aleppo and Mr. Hasan Al-Sehli, a
Saudi businessman with interests in Syria. As a major shareholder
in about ten large textile projects, which consume important
quantities of caustic soda, Mr. Sabbagh came to realize that
a major business opportunity could be seized by creating a
chlor-alkali production unit in the country.
Project
Location
Project will be located in Aleppo, the second largest
city in the country.
Project
Cost
The
total project cost is estimated at USD 42.5 million.
ICD's
Role and Developmental Impact
*
This financing was the first ICD operation in Syria and one
of the first long-term financing arrangements in favor of
the private sector in this country for more than two decades
(as long-term foreign exchange financing is not currently
available in Syria).
*
Perfectly in line with the ICD strategy, this operation is
an excellent opportunity to provide not only financing but
also advice on institutional building and managerial improvement
to the sponsors with a view to help introduce more efficient
management practices among the Syrian business community.
* The subject operation is also an occasion for ICD to mobilize
resources from the IDB group and to play a leading role in
structuring an important project.
