Ghorasal Polash Urea Fertilizer Project (MIGA-14070)

Countries
  • Bangladesh
Where the impacts of the investment may be experienced.
Specific Location
Narsingdi
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 26, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
The Hongkong and Shanghai Banking Corporation Limited
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 450.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Oct 30, 2019

Disclosed by Bank Jul 26, 2019


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Project Description

According to the bank website, "This summary covers a proposed investment by The Hongkong and Shanghai Banking Corporation Limited of Hong Kong, SAR, China, and other international financial institutions to be determined (together, the Guarantee Holders). The Guarantee Holders intend to provide a non-shareholder loan to the Bangladeshi state-owned enterprise Bangladesh Chemical Industries Corporation (BCIC) guaranteed by the Government of Bangladesh to finance a new fertilizer plant, the Ghorasal Polash Urea Fertilizer Project (the Project). The Guarantee Holders have applied for a MIGA guarantee covering up to US$450 million of principal, future interest and premium for a term of up to 15 years against the risk of non-honoring of a sovereign financial obligation.

The Project will consist of the engineering, design, procurement, construction, completion, testing, start-up, commissioning, operation and maintenance of the Project which is located in the district of Narsingdi, Bangladesh, with a capacity to produce up to c. 0.9 million tons per annum of urea from natural gas. When operational, the Project will replace two obsolete fertilizer plants."

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Private Actors
  • Bangladesh Chemical Industries Corporation (BCIC) -- Financial Intermediary
  • The Hongkong and Shanghai Banking Corporation Limited of Hong Kong -- Implementing Company
Contact Information

No contact information provided at the time of disclosure.

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/