Announcement of First IFC Burundi Investment Supports Glass Bottle Venture on July 17, 1981

IFC Press Release No. 82/1 Friday, July 17, 1981 First IFC Burundi ITivestment Supports Glass Bottle Venture The International Finance Corporation (IFC) is making its first invest- ment in Burundi by joining local and foreign investors in financing an epproxi- mately $22.6 million project to produce about 8,000 metric tons of glass bottles a year for sale in Burundi and neighboring countries. A new company, Verreries du Burundi, S.A.R.L., is being formed to imple- ment the project. A plant will be built in the industrial zone of Bujumbura, the capital of Burundi. The project will rely largely on locally available raw materials. Equity of $7,530,000 for the project is being provided by the Government of Burundi, $3,390,000; Banque de Credit de Bujumbura, one of the leading com- mercial banks in Burundi, $110,000; EDESA S.A. of Luxembourg, a multi-lateral, privately owned development finance corporation, 82,080,000; IFC, an international development institution, $780,000; Brasseries du Burundi S.A.R.L., $780,000; and Banque Nationale de Developpement Economique (BNDE), the leading Burundi develop- ment finance company, S390,000. IFC is lending 84,650,000 and Caisse Centrale de Mobilisation et de Financement, of Burundi, $2,280,000. The European Investment Bank is providing loans totalling $5,100,000 through the Government and BNDE. A $4,430,000 Swiss export credit completes the financial plan. The venture is the first major regional industrial project to be imple- mented under the auspices of the Communaute Economique des Pays des Grands Lacs, established by Burundi, Rwanda and Zaire. The project will benefit the region by providing glass bottles which would otherwise have to be imported. It will also create about 170 jobs in Burundi and result in estimated net foreign exchange benefits of $21 milliol over the life of the project. The project will be implemented on a turn-key basis by BBC Brown Boveri and Company Limited - one of the largest companies in Switzerland - which will also provide technical and management assistance in association with Vetropack S.A., Switzerland. An expert provided by the United Nations for Industrial Development Organization (UNIDO) helped the Government in preparing the project. In addition to providing financing, IFC assisted the Company in its financial and management planning. [Any inquiries strictly relating to IFC's participation in this project should be directed to the TFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0393.]