International Finance Corporation                               1818 H Street. N.W.




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                                                                      Washington, D.C. 20433, U.S.A.
                                                                      202-393-6360




      IFC Press Release No. 78/26
      Monday, May 1, 1978


                                 IFC Supports Sudan Industry
                              $8.4 Million for Textile Project


           The International Finance Corporation (IFC) and Sudanese and European
      interests are joining to establish a $40 million, 12 million meters-a-year,
      integrated cotton textile mill in Wad-Medani, Sudan's second largest city.
           The major sponsor of the project is the Gezira Managil Tenants Cooperative
      Corporation which is owned by 96,000 tenant farmers of the Gezira and Managil
      Agricultural Schemesa     The Tenants Corporation will invest $10 million in the
      project's equity.
           The project i.s an important step in Sudanese efforts towards achieving self-
      sufficiency in textile manufacturing and adding to the value of domestic agricul-
~     tural production as the mill will use locally grown cotton and its output will be
      sold in the domestic market.     The project will create approximately 900 jobs for
      Sudanese and generate net foreign exchange savings of $3.5 million annually in the
      early years and $5.2 million annually later.
           IFC is providing $6.5 million in loan, $1.5 million in equity and a $375,000
      contingent commitment; the European Investment Bank (EIB), $7.9 million in loan;
      the Sudan Development Corporation, the country's major development finance institu-
      tion, $4.5 million in loan and $3 million in equityo       Maurer Textile S.A., a Swiss
      company with extensive experience in establishing textile mills in developing
      countries and the technical partner in this project, will provide $1.5 million in
      equity.   Suppliers' credits of $5.1 million complete the financing.
           The investment by IFC, the World Bank affiliate that supports private enter-
      prise ventures in developing countries, is its second in an integrated textile
      project intended to assist Sudan in becoming self-sufficient in textiles.                It is
      also the third project developed through close cooperation between. Sudan Develop-
      ment Corporation and IFC.     In addition to their financing, EIB, IFC and Sudan
      Development Corporation helped promote the project by assisting in the technical
4lt   and financial planning.
      (Any inquiries strictly relating to IFC's participation in this project should
       be directed to the IFC Information Office, 1818 H Street, N.W., Washington,
       D.C. 20433, Telephone (202) 477-5340.)