Zhong Chen Energy

completed

Zhong Chen has completed the first phase of the project which includes the construction of a 30,000-ton wharf, four 500-ton spherical tanks, and four 50-ton horizontal tanks. IFC''s investment will finance the second phase which includes the construction of two 25,000-ton low temperature and normal pressure liquefied petroleum gas (LPG) storage tanks and other related utilities and on-site facilities. The project will allow large tonnage of imported LPG to be transported directly to Zhong Chen terminal. This is not possible at present. There is no large LPG transport terminal in north China. The north China market is currently served by many smaller inshore tankers with loading capacity below 3,000 tons. The project will alleviate the supply shortage for import LPG and will address the inefficiency and inadequacy of the existing LPG import, breakbulk, and storage system in north China.This project will supply environmentally clean fuel, LPG, to North China. By helping make LPG more readily available, the project could further expediate the substitution of coal and wood, reducing air pollution in north China. The venture has a strong developmental impact and fits well into the World Bank and IFC''s strategy for China. It is also consistent with IFC''s plan to support projects which have direct, positive environmental impacts, in line with the World Bank''s priorities in China.IFC''s investment in Zhong Chen and mobilization of other banks'' financing will provide the long-term limited recourse financing, which is not yet available to private companies in China. This transaction will also help draw attention to China''s private companies in the international banking community, thus promoting local private sector development.