|
|  |
| PICT4 |
|
| 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 | 26933 |
| Company name | Pakistan International Container Terminal |
| Country | Pakistan |
| Sector | Transportation and Warehousing |
| Environmental category | B |
| Department | Infrastructure |
| Status | Pending Disbursement |
|
| Date SPI disclosed | April 14, 2008 |
| Projected board date | May 30, 2008 |
| Previous Events | Signed: June 25, 2008
Approved: June 18, 2008 |
|
| View Environmental & Social Review Summary (ESRS), click here |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
PICT operates a container terminal in the Port of Karachi under a 21-year Implementation Agreement signed in 2002 with the Karachi Port Trust (KPT). The Port of Karachi is the main port of Pakistan and handles about 60% of the country’s container traffic. The company itself is estimated to handle about 21% of the country’s container traffic. IFC has provided three financing packages to Pakistan International Container Terminal Ltd. (PICT) since 2003 to support its development and expansion plans. Although Phase III investments are in progress, in order to further expand its operations to keep up with projected demand growth, PICT is executing Phase IV investments to:
- acquire additional container handling equipment, including two ship-to-shore (STS) gantry cranes, ten rubber-tired gantry (RTG) cranes and other equipment (reach stackers, terminal tractors, trailer units, and generator sets); and
- complete civil works.
The project is estimated to cost $30.7 million and increase PICT’s annual capacity to 750,000 TEUs. |
|
| Project sponsor and major shareholders of project company |
| Captain Haleem Siddiqui and his immediate family directly and indirectly own about 58% of the company. The other significant shareholder of PICT is Jahangir Siddiqui & Company Ltd. (18%), one of the largest securities firm in Pakistan. The remaining 24% of the company is traded on the stock exchange. |
| Total project cost and amount and nature of IFC's investment |
| The project is estimated to cost $30.7 million. The proposed IFC investment is a $11 million A loan for IFC’s own account. |
| Location of project and description of site |
| PICT operates a container terminal at Berths 6-9 in the Port of Karachi. The Port of Karachi is the main port of Pakistan and handles about 60% of the country’s container traffic. PICT’s berths have a quay wall of 600 meters, a dedicated terminal area of 22 hectares, and a draft of 11.5 meters. |
|
| Anticipated development impact of the project |
| Pakistan’s GDP growth is driven by international trade, particularly its ability to grow exports and, by extension, the country’s ports’ ability to handle trade. Pakistan’s ports have been facing capacity constraints as container volumes increase. The project is expected to increase container handling capacity and improve efficiencies at the company and at the Port of Karachi. This will benefit all port users including shipping lines and exporters and importers through lower transport costs and higher levels of service. The efficiency gains would support the competitiveness of Pakistani exports and contribute to a better environment for private sector development and economic growth. The project will also support the government with higher royalty payments and taxes. |
| IFC's expected development contribution |
| PICT invited IFC to finance the project because of the positive experience it has had with IFC. IFC led the structuring of the financing of PICT’s first three phases of investments and will continue to play a leading role in the financing of the Project in working with other lenders. IFC will also provide long-term financing that would be difficult to arrange in the local markets. Without IFC’s involvement, the company’s ability to bring a new financial institution to finance Phase IV at the required tenors at reasonable pricing would be limited. IFC’s proposed financing would also signal its continued support to the development of the private sector in Pakistan. |
| 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. |
|
| For inquiries about the project, contact: |
Mr. Sharique A. Siddiqui, Project Director
PICT
2nd Floor, Business Plaza
Mumtaz Hasan Road
Karachi 74000
Pakistan
Telephone: +92-21-2400450
Fax: +92-21-2400281
E-mail: sharique@mrgc.com.pk |
|
| 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 |
The environmental documents should be available at the administrative office of PICT:
2nd Floor, Business Plaza
Mumtaz Hasan Road
Karachi 74000
Pakistan |
|
|
|
|