AEF Transenergy Limited

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Kenya-Transenergy Kenya LimitedRegion Sub-Saharan AfricaSector InfrastructureProject No. 009430Projected Board Date March 31, 1999Company Name Transenergy Kenya LimitedTechnical Partner and/or Major Shareholders The company is owned by Gulf Africa Petroleum Company of Mauritius which in turn is majority owned by Mr. Y. Kotak and his brother D. Kotak, both Tanzanian nationals. Project Cost Including Proposed IFC Investment. Project Cost : US$3.5 million IFC Loan Investment : US$1 millionLocation of Project and Description of SiteEldoret, in an industrial park.Description of Company and Purpose of ProjectThe project is to expand a petroleum transportation company’s fleet of 29 tankers with the purchase of an additional 20 tankers.  The project will meet the increasing demand for fuel products in Uganda and the landlocked countries of Rwanda and Burundi.  IFC Role: IFC is one of the few sources of medium term dollar finance in Kenya. Local commercial banks do not provide dollar finance readily for vehicle purchase. The line of credit from the European Investment Bank, which some Kenyan commercial banks are able to access, cannot be used for service companies.Developmental Impact: The project will have the following impacts on development: provide a vital service as fuel is the lifeblood of the growth of any economy; improved service and competition in the transportation sector; increase in skilled employment (drivers, mechanics); and generation of additional foreign exchange.Environmental Category and IssuesThis is a category B project according to IFC’s environmental review procedures. Key environmental, health and safety issues include source of water and power at fleet depot(s); disposal of liquid and solid wastes including sewage; spill prevention and secondary containment for above-ground and underground fuel storage tanks; monitoring for possible discharges from leaking fuel storage tanks; vehicle emissions; fire and explosion prevention, life safety and emergency response preparedness; employee occupational safety and fire response training; maintenance of vehicle fleet; recycling and/or proper disposal of used motor oils and grease from vehicle servicing; CFC-free air conditioning if applicable; and facility safety and good housekeeping practices.  The sponsor has provided IFC with information regarding their methods of operation, as well as proposed mitigation measures to ensure that the project complies with all relevant IFC environmental, health and safety guidelines. Details of these procedures and mitigation measures are provided in the Environmental Review Summary (ERS) for the project, which was released to the World Bank InfoShop on November 25, 1998.Host Country Location of Environmental Documents Kenya: World Bank Library in NairobiDate SPI Sent to PIC December 7, 1998This Summary of project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors.  It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.For Additional Information contact:  Corporate Relations UnitTelephone: (202) 473-7711Facsimile: 974-4384S:\AEF Projects\Kenya\Transenergy-9430\SPI.DOCDecember 2, 1998 11:12 AMEnvironmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).