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| QICT |
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| 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 | 27930 |
| Company name | Qasim International Container Terminal |
| Country | Pakistan |
| Sector | Transportation and Warehousing |
| Environmental category | B |
| Department | Infrastructure |
| Status | Pending Signing |
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| Date SPI disclosed | May 5, 2009 |
| Projected board date | June 5, 2009 |
| Previous Events | Approved: October 12, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Qasim International Container Terminal Ltd. (“QICT”or the “Company”) operates a container terminal at Port Qasim approximately 50 km southeast of Karachi, Pakistan. QICT is the leading container terminal operator in Pakistan with a market share of 36% in 2008. Container volumes passing through Pakistan’s ports have increased significantly in recent years and are expected to reach the limits of the existing ports in the coming years. In order to accommodate this increase in demand, QICT is developing a new container terminal adjacent to its existing terminal at Port Qasim. Upon completion, the new terminal will have a draft of 14 m and the latest container handling equipment, enabling it to serve today’s large containerships and help address the projected shortage of container handling capacity in Pakistan. |
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| Project sponsor and major shareholders of project company |
QICT is owned 75% by DP World Ltd. (“DP World”) of Dubai, U.A.E., and 25% by International Terminal Holding Limited, an offshore entity owned and controlled by Pakistan-based entrepreneur, Mr. Habibullah Khan. DP World is one of the world’s leading marine terminal operators with 49 terminals and 12 new developments across 31 countries as of April 2009. DP World is owned 80.45% by the Government of Dubai, and the remaining 19.55% of DP World is listed on NASDAQ Dubai. Mr. Habibullah Khan is a Pakistan-based entrepreneur who owns a group of shipping and logistics services companies in Pakistan. |
| Total project cost and amount and nature of IFC's investment |
| The project is estimated to cost $220 million. The proposed IFC financing is an investment of up to $50 million for IFC’s own account. |
| Location of project and description of site |
| QICT is located in Port Qasim, 50 km southeast of Karachi, Pakistan, and 45 km from the Arabian Sea. |
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| Anticipated development impact of the project |
| The project will help strengthen the port sector in Pakistan by increasing container handling capacity and improving efficiency levels at QICT. The increased capacity at QICT will help ease congestion otherwise expected in the near future as traffic at QICT and the other Karachi container terminals reaches capacity. The accompanied improvements in service levels will benefit port users including shipping lines, exporters, and importers. The project will also create direct and indirect employment opportunities and increase revenues for the Government of Pakistan through higher tax payments and royalty and lease payments. |
| IFC's expected development contribution |
| IFC will be providing long-term financing at a maturity necessary for the project’s completion but unavailable in the commercial market. IFC’s involvement will also help send a positive signal to other lenders and improve the terms of the local financing for the project. IFC’s support is increasingly important during the current scenario of global economic crisis. In this case, IFC is not only supporting private sector led growth in infrastructure, but also playing a counter cyclical role in promoting foreign direct investment in a less than optimal environment. |
| Environmental and social issues - Category B |
| This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Additional details on IFC's review of this project may be found in the Environmental and Social Review Summary (ESRS) for the investment, which is also available on IFC's website. |
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| For inquiries about the project, contact: |
Mr. Shahid Iqbal
Chief Financial Officer
Qasim International Container Terminal
Berths No. 5-7 Marginal Wharves
Port Qasim Karachi - 75020
Pakistan. P.O.Box 6425
Tel: +92 21 4739052
Fax: +92 21 4730053
Email: Shahid.Iqbal@dpworld.com |
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| 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 |
Capt. Karamat Ali
General Manager Health, Safety, Training & Environment
Qasim International Container Terminal
Berths No. 5-7 Marginal Wharves
Port Qasim Karachi - 75020
Pakistan. P.O.Box 6425
Telephone: +92 21 4739100 Ext. 282 |
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