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Ethiopia: Derba Midroc Cement Plant


The Derba Midroc Cement plant project, located 70 km north of Addis Ababa, was approved in November 2015. It involves mining the Derba-Mugher limestone deposit of 165 million tons of limestone and treating it in a cement plant. The plant has a capacity to recover 5,600 tons per day of clinker and 7,000 tons per day of cement as a finished product, for an annual production of 2.5 million tons. The deposit has an estimated project life of 60 years.

The Bank’s Investment

Of the total cost at inception of US $350 million, the Bank provided a long-term senior loan of US $55 million. It also played a key role in attracting the necessary debt financing to realize the project and in convincing all financiers to provide the 10-year funding needed to ensure a solid cash flow structure.

Economic and social benefits

With a current production capacity of 8,000 tons a day, the project is helping to meet 100% of the country’s cement needs and exporting to nearby countries. It has played a key role in local cement supply and has led to a 75% drop in the price of cement. This has had a positive effect in the construction sector, especially by reducing cement import dependency.

The project generated 2,000 jobs during the construction phase, and currently employs 739 permanent workers, of which 17% are female.

Given the project’s high-power consumption, a 5 MW plant was built by the sponsor during the construction phase that makes 40% of its energy available to the local community.

The project has had a catalytic effect on regional development. A local township for workers and communities now provides basic services including schools, a hospital, primary healthcare facilities and training for local SMEs.

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