Engro PVC Newco

completed

Summary Of Project Information (SPI)Project NamePakistan-Engro PVC     RegionCentral Asia, Middle East & North AfricaSectorProject No008290Projected Board DateJuly 15, 1997Company 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.The are from the Public Information Center.Host country location of environmental documentsEngro Chemical Pakistan, Baharia Office, M.T. Khan Road, Karachi, PakistanDate SPI sent to PIC      May 14, 1997For 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).