Bocom Clean Cooking Facility

active

 Note: The original disclosure for this investment on May 11, 2022, noted that IFC would support the development of new fuel service stations and four regional LPG storage and distribution facilities.  However, the focus of IFC’s investment has subsequently changed and financing will no longer be used for the development of new service stations.  In addition, eight new regional LPG storage and distribution facilities will be developed as opposed to the four as originally envisaged.  Thus, the ESRS has been updated to reflect these changes. BOCOM Petroleum SA (“BOCOM” or “the Company”) is a petroleum products retailer headquartered in Douala, Cameroon. Founded in 2006, the Company is an affiliate of the larger BOCOM Group (“the Group”) which comprises eight companies focusing on waste management, transport and logistics, security, industry, mining, recycling, civil engineering and retail of petroleum products. BOCOM is divided into two divisions: the White Fuels Division (gasoline, kerosene and diesel), and the Specialized Fuels Division (Liquified Petroleum Gas (LPG) and lubricants). Activities include petroleum products storage and distribution within Cameroon and product export to the Central African Republic, Congo Brazzaville and Chad. The Company owns and operates a network of 77 fuel stations in Cameroon whereby it distributes white products throughout the country.  In addition to its normal activities among which vehicle servicing, vehicle washing, lubricant distribution and food retail, in 2017, the fuel stations evolved into offering LPG distribution. IFC is considering an investment in BOCOM to specifically support activities associated with the retail of petroleum and LPG; further detail provided below. The Company has sited its core activities within the Government owned ‘MAGZI industrial concession’ which is located near the Port of Douala. BOCOM’s primary LPG facility is situated here with a storage capacity of 2,400 m3 (approx. 1340 metric tons) and a filling capacity of 2500 gas bottles per day. LPG gas bottles (6, 12.5 and 35 kg) filled at the plant are dispatched by trucks to wholesalers and filling stations throughout the country. BOCOM also sells bulk gas which is delivered in tankers to local companies. From the Douala main LPG facility, BOCOM supplies bulk LPG to another company owned 38m3 LPG storage facility located in Yaoundé, the capital City of Cameroon. At this facility some 500 gas bottles are filled per day. In addition, gas bottles filled at the main Douala plant are also supplied to their Bansoa depot in western Cameroon, for LPG distribution in this part of the country. The Douala LPG plant extends over a 1.2 ha plot and comprises 16 horizontal cylindrical tanks of 150 m3 each, partially buried under embankments of non-corrosive sand. However, due to logistical constraints associated with the supply of LPG by road, the company has not stored more than 450 m3 at any one time till date. BOCOM has recently constructed a 3 km pipeline from the facility to the Port of Douala to diversify its supply lines; once commissioned this pipeline will allow the LPG facility to store additional LPG.  Adjacent to the Douala LPG facility the company has a lubricant blending and packing facility with a 1,500 m3 year production capacity. This facility covers an area of approx. 0.6 ha and produces three different self-branded engine oils and packages various other imported lubricant products i.e., engine oil, transmission oil, hydraulic oil, gear oil, grease and brake fluid. As part of IFC’s investment, BOCOM will be expanding facilities as defined below:Increasing LPG filling capacity at the Douala facility to 6000 bottles per day. This activity requires upgrading the current storage tanks and the addition of 2 new storage tanks of some 500 tons each. The Government has already granted relevant permits for increasing the site footprint for additional storage.  This will require dredging of additional 5 ha on the Wouri river, an area of no use for fluvial activities; Expanding the Yaoundé storage facility from 38m3 to 150m3 and the filling capacity from 500 to 1000 bottles/day;  Construction or expansion of four regional LPG storage and distribution facilities i.e., one in each of the following locations: Bansoa (Western Region), Bertoua (Eastern Region), Pitoa (Northern Region), and Ngaoundere (Region of Adamaoua); these facilities will have a 150 m3 storage capacity each and fill 500 gas bottles per day;  Development of 4 regional LPG storage and distribution facilities at locations to be identified based on feasibility studies still to be undertaken; Expansion of the current capacity of the lubricant production line in Douala from 1,500m3/year to 3,500m3/year by automating the production line; andPurchasing of trucks for the transportation of LPG and 80,000 gas bottles to support development of LPG activities