Private Sector Operations in 2001

Asia

Bangladesh

Recipient: Westin Dhaka
Type of Instrument: Loan
Sector: Services
Amount: $5 million
Approved: June 13, 2001

This loan is to provide financing to assist in the construction of a superior class hotel in Dhaka, the capital of Bangladesh. As the city's premier hotel, offering well-located, purpose-built space for business and social functions, the Westin Dhaka will contribute significantly to the city's business infrastructure. By accommodating the needs of tourists as well as companies seeking to operate in Bangladesh, the hotel will help increase foreign direct investment and promote trade. The project will directly create 400 new jobs, while substantial indirect employment is also anticipated through the broad multiplier effects of the investment on the domestic/local economy. Additionally, during the construction of the hotel, local firms and suppliers will be employed for most of the civil works.

India

Recipient: SREI International Finance Ltd. (SREI)
Type of Instrument: Line of credit
Sector: Leasing
Amount: $5 million
Approved: March 27, 2001

The line of credit will be utilized to help finance SREI's leasing services to small and medium-scale enterprises (SMEs). A non-bank financial institution, SREI is involved in the leasing of equipment for infrastructure development, a sector which is expected to grow considerably as India continues to liberalize its economy. SREI concentrates on the private segment of the market, and on the provision of equipment such as earth-moving and construction machinery. Its activity as a provider of financing to the infrastructure sector aids the development of both the financial and infrastructure sectors, which are high on the government's priority list.

Maldives

Recipient: Maldives Leasing Company Ltd.
Type of Instrument: Line of credit
Sector: Leasing
Amount: $3 million
Approved: June 13, 2001

Maldives Leasing is a newly formed company, set up jointly by a regional entity and the IFC, along with local businesses and individuals. Its purpose is to provide lease financing to a client base consisting initially of established concerns in the tourism, fisheries, transportation and construction sectors. In the longer term, small and new enterprises may also be served. The purpose of the line of credit is to provide funds for its leasing operations. As the first of its kind in the country, Maldives Leasing will enhance the depth of the financial system and open up new opportunities to private enterprises by providing access to term finance.

Syria

Recipient: Arab Ceramic Roof Tile Company (ACERT)
Type of Instrument: Loan
Sector: Industrial
Amount: $5.6 million
Approved: June 27, 2001

The loan to ACERT was approved to support the construction and operation of a modern facility to produce clay roof tiles. With an installed capacity of 15 million units per year, the plant will service both the local and international markets, satisfying growing demand for high-quality, clay roof tiles in Syria, together with exports to regional Middle-East markets. The project represents a major investment in the Syrian industrial sector, which will strengthen and diversify its economic base, allowing for significant job creation, technology transfer and substantial export earnings.

Syria’s Arab Ceramic Roof Tile Company plans to expand its production facility with financing provided through the Fund’s Private Sector window.