Engro Paktank Terminal Limited

completed

Summary Of Project Information (SPI)Project NamePakistan-Engro Paktank Terminal     RegionAsiaSectorProject No007163Projected Board DateMay 14, 1996Company NameEngro Paktank Ltd.Technical Partner and/or Major Shareholders Engro Paktank’s shareholders are: (i) Engro Chemical Pakistan (50%), an existing IFC client, Pakistan’s second largest producer of urea fertilizer; and Royal Pakhoed N.V. (50%) of the Netherlands, a leading international company in chemical handling and tank farm operations.Project Cost Including proposed IFC investment The project cost is estimated at US$65 million, with start of commercial operations scheduled for September 1997. IFC’s proposed financing consists of a US$12 million “A” loan, and a US$5 million “B” loan for the account of participants.Location of project and Description of site The project will be located in Port Qasim on the outskirts of Karachi, Pakistan. The project site is next to the main dry cargo handling berths.Description of Company and Purpose of Project Engro Paktank (EPTL) is a joint venture Company established to set up a dedicated liquid chemical jetty and tank farm in Port Qasim. The facilities, which include a jetty capable of handling up to 2 million mtpy of products, and a tank farm with an initial capacity for storage and handling of 280,000 mtpy, will serve the needs of existing chemical importers in Port Qasim, and of new chemical plants being set up in an industrial development zone adjacent to the harbour area. The project will remove a major bottleneck to import of liquid chemicals feedstocks to Pakistan, and will help divert the handling of potentially hazardous products from the congested downtown Karachi port. EPTL’s first major customer will be ICI Pakistan Ltd., which will import paraxylene and acetic acid for a grassroots PTA plant now under construction in Port Qasim. PTA is the main feedstock for polyester production. The project will thus assist the backward integration of the textile industry, Pakistan’s most important manufacturing base, helping to secure its long term competitiveness. EPTL is also expected to act as a catalyst for the development of new chemical projects in Pakistan, particularly plastics producers, who in turn will foster downstream, labor intensive plastics processing industries.Environmental Category and Issues This is a category B project according to IFC''s environmental review procedure. Environmental and occupational health and safety issues associated with this project include site location and potential impact on local eco systems, air emissions, liquid effluent treatment, spill prevention, fire protection and emergency response, public consultation and public dissemination. The Engro Paktank project is located within the Port Qasim area which is being developed as a major industrial area. The terminal will be built on a greenfield site, which is bare with only a few devastated mangrove bushes along the river bank. Other nearby river banks are vegetated with mangroves but these areas will remain untouched by the project. Air emissions from the facility will be limited. Tanks will be of the fixed roof type equipped with internal floating roof to limit losses and procedures will be established to reduce losses from the tank truck filling. Domestic sewage will be treated in a septic tank system to comply with local requirements and World Bank guidelines before discharge. Rain water from areas with potential for contamination will be screened before discharge. The terminal will be equipped with tanks to receive liquid contaminants. The terminal will be designed to prevent spills according to international recognized standards. Pipelines from the jetty to the storage area will only be filled during ship unloading. All tanks will be equipped with automatic overfilling protection systems and bunds able to store the full tank load. The bunds will be lined to prevent potential spillage from seeping into the ground. A risk assessment study has been conducted including consequence calculations. Conservative consequence calculations have shown that even a worst case spill will not result in irreversible impact on nearby mangrove areas. The fire prevention and fire emergency plan includes foam and cooling water systems, fire hydrants and foam sprinklers. During preparation of the environmental assessment for the terminal project, contact has been made with local, internationally recognized non-governmental organizations, who will review the environmental assessment and prepare comments based on contacts with local villagers. Comments received will be considered during the final design. IFC will ensure ongoing compliance with World Bank guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Engro Paktank and by conducting periodic supervision."The is available from the Public Information Center.Date SPI sent to PIC      March 7, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental 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).