Financed ProjectsKurum International Corporate Loan III

Identification Code:

OP/13/0023

Total Operation Cost:

106.000.000

Maturity:

96 months

Operation Status:

Description and Purpose of the Operation:

Countries of Operation:

Albania (100,00 %)

Financial Product:

Loans

Sector:

Materials

Domain:

Private

Borrower/Client:

Kurum International Sh. A., Albania

Co-Financiers/Participants:

Guarantors/Sponsors:

Kurum Demir A.S. and Kurum Holding A.S.(Turkey) and energy companies the HEPPs belong to until they are merged with the Borrower.

Developmental and Regional Cooperation Impact:

Demonstration Effect (including catalytic impact on FDI) - A loan that helps the firm to improve overall competitiveness and positive demonstration effect in Albania. Multiplier Effect - Since Kurum is a major employer in its region of operation, its presence has a positive multiplier effect on the local economy. It surely contributes to increased business activity in the area, improve employment and support sundry supporting or secondary activities. Taxes and Subsidies - As the firm pays taxes, this provides an additional benefit to the local and national economy. Regional Cooperation - The Operation involves a Turkish investor with a long standing presence in Albania, continuing its presence after having also purchased four hydroelectric power plants in Albania. Thus, it strengthens intra-regional foreign direct investment links. Cooperation is also promoted via exports to neighbouring countries and scrap imports from the neighbouring countries such as Russia, Ukraine and the European Union.

Environmental Classification and Impact (summary):

According to the Bank’s environmental screening categories the acquisition of the four HEPPs by Kurum International has been screened as Category B due to limited potential impacts which can be prevented and mitigated by readily available technologies and generate any new significant risk and negative impacts. The existing impacts are well known and relate mainly to potential future retrenchment of employees, dam safety arrangements, and emergency preparedness with regard to downstream communities.

Operation Leader:

General Industries, Transport, Tourism 2

E-mail:

gitt2@bstdb.org