EVTL Expansion

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 Engro Vopak Terminal Ltd. (“EVTL”, or “the company” http://www.engrovopak.com/), Pakistan’s leading chemical and liquefied petroleum gas (LPG) storage company. EVTL is a 50/50 joint venture of Royal Vopak NV of Netherlands (“Vopak”) and Engro Corporation Limited (“Engro”, together the “JV Partners”). IFC has known Engro since the early 1990’s and has since invested across a number of its group companies, including Elengy Terminal Pakistan (disclosed in 2014: https://disclosures.ifc.org/#/projectDetail/ESRS/34603) being the existing IFC client which has generally satisfactory environmental, health and safety (EHS) performance.   EVTL owns and operates the largest terminal and storage facility for bulk liquid chemicals and LPG in Pakistan since 1997. EVTL is located inside the Port Qasim Industrial area approximately 30 km east of Karachi, Pakistan and roughly 8.5 km away from the nearest residential area -PQA housing complex.  EVTL’s current total storage capacity for various chemicals is 82,400 m3, including LPG storage capacity of 13,850 m3 or 6,700 tons. The company provides storage and handling services for a variety of chemical products namely Paraxylene, mono ethylene glycol, acetic acid, ethylene, phosphoric acid, vinyl chloride monomer, ethylene dichloride (EDC) and LPG. While some liquid chemicals are pumped to chemical plants in the Port Qasim Authority (PQA) industry zone via pipeline, others are delivered by road tankers. The proposed investment is a corporate loan to finance; a 3- year terminal rehabilitation program; including: i) expand LPG storage facility by 6,000 tons/year in Port Qasim; ii) expand EDC handling capacity and; iii) implement additional solar panels to increase capacity of existing solar energy farm within the terminal (“the project”). The new LPG facility will be set up within the existing perimeter of the terminal which is adjacent to Engro Elengy Terminal (EETL) LNG jetty site (Project No. 34603). Furthermore, a new underground EDC pipeline and two pumping stations will be constructed to transfer EDC to Engro Polymer and Chemicals Limited (EPCL) facility located in the PQA industry zone. Currently, it is transferred by road tankers.