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Summary of Project Information (SPI) |
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| Project number | 7554 |
| Project name | Engro Retrofit & Expansion |
| Country | Pakistan |
| Sector | Chemicals |
| Department | Oil, Gas, Mining And Chemicals |
| Company name | Engro Chemical Pakistan Limited |
| Environmental category | B |
| Date disclosed | August 30, 1996 |
| Status | Completed |
| Previous Events | Invested: September 10, 1997
Signed: January 6, 1997
Approved: December 2, 1996 |
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Summary Of Project Information (SPI)
| Project Name | Pakistan-Engro Retrofit |
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| Region | Sindh Province |
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| Sector | Chemicals and Fertilizers |
Project No007554
Projected Board DateOctober 11, 1996
Company NameEngro Chemical Pakistan Limited (Engro, the Company)
Technical Partner and/or Major Shareholders
Engro is an established publicly quoted company. The major shareholders are an employee trust, Pakistani and foreign financial institutions, IFC and local small investors.
Project Cost Including proposed IFC investment
The total project cost, including working capital and interest during construction, is US$59 million. IFC’s proposed investment is an “A” loan of US$10 million and a “B” loan of US$12 million for the account of participants.
Location of project and Description of site
The project will be located at the Company’s existing production site at Daharki, Sindh Province. The site, which was initially developed in the 1960’s, is on barren land with an adjacent compound for employees and a small village.
Description of Company and Purpose of Project
The project involves the retrofitting and modernization of a natural gas based amonia and urea plant, to improve energy efficiency, reduce effluents and increase production capacity. Engro, formerly Exxon Chemical Pakistan, produces urea for the local market and is Pakistan’s second largest producer with a 23% market share. The Company’s original manufacturing plant, with a capacity of 268,000 mt per year of urea was built in the 1960’s. In 1991 IFC helped Engro finance an expansion and debottlenecking of the plant to 600,000 mt per year of urea, together with a management buyout of Exxon USA’s controlling equity stake. This project was completed in 1993. Engro has since completed a further debottlenecking to 750,000 mtpy. The Retrofit project is designed to improve the energy efficiency and environmental performance of the plant, while boosting capacity to 850,000 mt of urea per year. IFC’s role in the project will be to provide access to long term foreign currency finance and to assist the continued development of a successful locally-owned fertilizer producer. IFC will thus promote an economically viable investment which will increase energy efficiency and reduce the environmental impact of one of Pakistan’s largest urea producers.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. Environmental, health and safety issues include site location, air emissions, liquid effluent treatment, solid waste, HAZOP study and safety audit, training and emergency response and occupational health and safety policies. The project will be carried out on Engro’s existing plant site and no land acquisition will be necessary. The additional production from the plant will be carried by rail or otherwise by truck. The facility is already in compliance with relevant air and liquid emission standards. Air emissions will be further reduced by 36% on completion of the retrofitting. Liquid effluent will also be reduced by 20%. There will be no significant change in generation of solid waste or of ambient noise levels. A formal HAZOP study will be carried out for the process changes and recommendations will be incorporated in the design. Current training and emergency response programs, including environmental awareness and responsibility, safety orientation, and work permit systems and other programs will be amended as required. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating annual monitoring reports and by conducting periodic supervision.
The is from the Public Information Center.
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| Date SPI sent to PIC | August 30, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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