Project Description
This project comprises the modernization and upgrading of the existing facilities of a mineral water bottling plant in Ibb, Yemen, by installing a PET bottle stretch blow molding machine and PET bottle and polyethylene (PE) bag packing facilities. The project aims to provide a full product size and distribution covering the capital city Sana'a, the cities of Aden, Hodeidah, and Taiz and their surrounding areas. The plant will have an installed production capacity of 48 million liters of PET bottles of naturally sourced water per year (corresponding to 45 million bottles of 750 ml. and 1.5 liter) and 18 million 500 ml. size bags.

Project Sponsors
The sponsors are the Salahaddin Industrial and Commercial Group (Salahaddin Group) and its subsidiary company Al-Ahlia Mineral Water Company. Salahaddin Group was established in 1964 as a trading company, started manufacturing in 1976, and has developed into a reputable
Yemeni enterprise. It has several factories both within and outside Yemen. The group employs around 6,000 people ( in 2001).

Project Location
The factory is located between Ibb and Taiz towards the South West of Yemen.

Project Cost
The total project cost is estimated at US$4.3 million.

ICD's Role and Developmental Impact
ICD extended an installment sale financing not exceeding US$1.0 million to cover the costs of the filling and packaging line, in addition to a few trucks. The project will supply the local market with bottled water from one of the most sustainable sources in the country. The project will also increase the supply of PET-packaged water to Yemen, which will help promote higher-quality packaging for bottled water.