PT Panca Amara Utama (IFC-32198)

Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jan 30, 2014
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
PANCA AMARA UTAMA, PT
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 130.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 750.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS May 7, 2020

Disclosed by Bank Feb 26, 2013

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

PT Surya Esa Perkasa Tbk. ("SEP") is proposing to build a 2,090 metric tons per day (MTPD) capacity greenfield ammonia plant near Uso Village, Luwuk City, Central Sulawesi Province, Indonesia, which will utilize natural gas from the Donggi Senoro (DS) gas fields in Central Sulawesi province ("the Project"). The plant will be established through PT Panca Amara Utama ("PAU"), a 60% subsidiary of SEP (to be diluted to about 51% on Project completion) and will be the first ammonia plant in Sulawesi and the third privately owned ammonia plant in Indonesia. IFC is proposing to provide a loan to PAU and taking equity in the Project.PAU has entered into an extendable 13 year gas supply contract with DS from 2015 to 2027. DS gas fields have allocated 55 million metric standard cubic feet per day (MMSCFD) of natural gas to PAU, 250 MMSCFD to PT DSLNG, a private sector liquefied natural gas (LNG) producer located adjacent to the proposed PAU site, and about 5 MMSCFD to PLN, the national electric company. DSLNG is the de-facto anchor plant of the DS gas fields. The proposed project includes the ammonia synthesis installation, ammonia storage tank farm, a jetty to export the ammonia, power plant, and other utilities. The natural gas will be supplied from neighboring DSLNG and thus a gas pipeline will not be required. There will be only one or two ships that dock at the jetty per week for ammonia transportation.PAU has 180 hectares of land to accommodate the Project and is purchasing an additional 20 hectares of land that are currently scattered within the 180 hectares to form an industrial complex for future development; this may include the manufacture of downstream ammonia products. The land preparation for the Project site is expected to start in March 2013, construction in October 2013 and Project commissioning by August 2015.

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project cost has been estimated to be US$750 million and will be financed by up to US$500 million of senior debt and US$250 million of equity. IFC is expected to invest up to US$125 million in the form of debt and equity, to finance part of the Project. In addition to the above investment, IFC plans to mobilize up to US$400 million of senior debt from other banks.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Company is 60% owned by PT Surya Esa Perkasa Tbk. (“SEP”), a company that is listed on the Indonesian stock exchange. Mr. Theodore Rachmat, Mr. Garibaldi Thohir and Mr. Vinod Laroya (through their shareholding in SEP) and SEP are the key Sponsors of this Project.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Mr. Ashok Baveja, Project Director
PT Panca Amara Utama
16th Floor, Menara Kadin, Jl. Rasuna Said
Blok X-5, Kav. 2-3
Jakarta 12950
Indonesia

ACCOUNTABILITY MECHANISM OF IFC

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/

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