|
|  |
| Termo Rubiales |
|
| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27780 |
| Company name | Energy International Corp |
| Country | Colombia |
| Sector | Utilities |
| Environmental category | B |
| Department | Infrastructure |
| Status | Pending Disbursement |
|
| Date SPI disclosed | February 27, 2009 |
| Projected board date | April 1, 2009 |
| Previous Events | Approved: September 21, 2009 |
|
| View Environmental & Social Review Summary (ESRS), click here |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project consists of the construction of a crude-oil fired thermal plant with gross capacity greater than 57 MW (“Termo Rubiales” or the “Project”), to supply energy to the Rubiales oil field (“Rubiales”) located in Los Llanos Orientales in Eastern Colombia. |
|
| Project sponsor and major shareholders of project company |
| The project sponsor is Energy International (“EI” or the “Company”), a company specialized in the power sector in Latin America. EI was created in 1998 as a sales division selling power modules, but also focusing on operations, maintenance, engineering and construction of thermal plants. EI has a fleet of power modules and turbines of nearly 300 MW. EI’s business units include: leasing of power modules and turbines, sale of turn-key medium speed engines, provision of EPC and O&M services, and investments in power projects in the LAC region. EI owns beneficially 100% of the shares of Termo Rubiales. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at about $68.5 million. The proposed IFC investment is a $16.5 million loan. |
| Location of project and description of site |
| The project is located in the Llanos Basin, 465 km from Bogotá in the Meta Department. |
|
| Anticipated development impact of the project |
| IFC is investing in Termo Rubiales to support the development of Meta Petroleum, a promising player of the oil industry in Colombia that has embarked in an ambitious plan to increase the production of the Rubiales field. The investment in Termo Rubiales would be directly supportive of Government policies to increase local production and private investment in the oil sector. |
 |
| IFC's expected development contribution |
IFC is supporting an existing player in the power sector focused on developing a portfolio of energy assets. IFC has long history of investing in energy projects throughout the world and thus can share its global expertise and experience to help the sponsor develop its local and regional portfolio of assets. IFC’s participation will also promote sustainability by ensuring that the development of the Project meets international social, environmental, health and work safety standards.
IFC’s role in this transaction is very significant. Commercial banking market will not be able to provide the tenor and amortization schedule that the Project requires, making it necessary that a multilateral institution like IFC to absorb and mobilize an important part of the financing. |
| Environmental and social issues - Category B |
Termo Rubiales is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of a document review, including the project’s technical, environmental and social reports and records; interviews with key personnel of the company; and a field visit to assess on-site the operation of the Environmental Health and Safety (EHS) and Social Management System at the facilities in Rubiales oilfield in the Puerto Gaitan area (Llanos Orientales, Colombia).
The following management elements were assessed:
Adequacy of the existing Environmental, Health, Safety and Social Management System to satisfy IFC’s Performance Standards requirements;
- The client’s assessment of potential EHS & Social impacts related to its projects;
- Labor issues and Human Resources policy;
- Health and Safety performance;
- Noise control;
- Air emissions;
- Wastewater and effluent management;
- Solid waste management;
- Emergency Response Plans;
- Community and Indigenous Peoples engagement;
- Potential land use, consultation and compensation management;
- Management of armed military security forces;
- Community health and safety (road safety for truck fleet)
The company has plans to address these impacts and ensure that the project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements - the Colombian laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the company is summarized in the Environmental and Social Review Summary (ESRS) and in the Action Plan agreed with the client. |
|
| For inquiries about the project, contact: |
Brett Hall
Vice President
Energy International Corporation
Tel: 1 (305) 593-5085 |
|
| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Spanish versions of the Environmental and Social Review Summary and the Environmental and Social Action Plan will be disclosed by the Company and made available to the public locally at the community school. Local communities will be informed about the project activities and the location of project related documentation through the regular community meetings conducted by Meta Petroleum, the oil field operator.
Jairo Gonzalez
Vice President -Electric Power Generation
Energy International Inc
1983 N.W. 88th Court, Suite 304
Miami, Florida 33172-USA
Phone: 305 593 5085 Ext.7380
Fax: 305 715 7308 |
|
|
|
|