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Project number 8290
Project name Engro PVC Newco
Country Pakistan
Sector Chemicals
Department Oil, Gas and Petrochemicals
Company name Engro Asahi
Environmental category A
Date disclosed May 15, 1997
Status Active
Previous Events Invested: March 4, 1999
Signed: March 24, 1998
Approved: January 15, 1998
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Description
Summary Of Project Information (SPI)
Project Name
Pakistan-Engro PVC
Region
Central Asia, Middle East & North Africa
SectorProject No008290
Projected Board DateJuly 15, 1997
Company NameEngro Asahi Polymer & Chemical Limited (the Company)
Technical Partner and/or Major Shareholders
The project company will be a joint venture between Engro Chemical
Pakistan (Engro), Mitsubishi Corporation (Mitsubishi)and Asahi
Glass Company (Asahi). Engro is an established publicly quoted
company which is Pakistan's second largest producer of urea fertilizer.
The major shareholders are an employee trust, Pakistani and foreign
financial institutions, IFC and local small investors. Mitsubishi
is the largest general trading Company in Japan. In addition to
equity investment, Mitsubishi will handle supply of VCM for the
project. Asahi is a diversified industrial company which is one
of the world's largest producers of glass and chlor alkali products.
Technology for the project will be provided by Mitsui Toatsu of
Japan.
Project Cost Including proposed IFC investment
The total project cost, including working capital and interest
during construction, is US$84 million. IFC's proposed investment
is an "A" loan of up to US$11 million.
Location of project and Description of site
The project will be located at Port Qasim, close to Karachi, Pakistan.
The site, which will be leased from Port Qasim Authority, is on
barren land which is part of a large industrial development zone.
Description of Company and Purpose of Project
The project is to construct a 100,000 mt/yr polyvinyl chloride
(PVC) manufacturing plant with production intended to serve a
fast growing local market. Feedstock (vinyl chloride monomer,
or VCM) will be imported. Commercial production is scheduled for
September, 1999.
Environmental Category and Issues
This is a category A project according to IFC's environmental
policies. Environmental issues associated with the project include
site location issues with potential for impact on mangrove areas,
liquid and solid effluent treatment and control, air emissions
and potential for accidental releases of hazardous by-products.
Occupational health and safety issues include training and education,
fire safety and emergency response, HAZOP analysis of PVC operations
and VCM handling and storage and general employee health and safety.
The company has prepared an Environmental Assessment (EA) for
this project. During the preparation of the EA a number of statutory
bodies and international and local NGOs were contacted to provide
information on the project to interested and affected parties.
The EA and Executive Summary have been made available for public
consultation locally from April 28 to June 27 1997. 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.
Host country location of environmental documents
Engro Chemical Pakistan, Baharia Office, M.T. Khan Road, Karachi,
Pakistan
Date SPI sent to PIC May 14, 1997
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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