GH2 Industries (Private) Limited (FMO-63578)

Countries
  • Pakistan
Geographic location where the impacts of the investment may be experienced.
Specific Location
Gharo - Sindh province
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
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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
Mar 28, 2025
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
GH2 Industries (Private) Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • 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)
$ 5.00 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.
Primary Source

Original disclosure @ FMO website

Updated in EWS Jul 29, 2025

Disclosed by Bank May 1, 2024

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Contact the EWS Team

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.

According to the Bank’s website, this concerns a greenfield project, or a newly designed project that lacks constraints imposed by previous work. GH2 plans to convert agricultural by-products and local raw materials to value-added products and expand on the export base of the country through a diversified product mix. The project offers a unique integrated and sustainable business model where key inputs including agri feedstock, power and steam are partially or fully produced in-house and various production waste streams are responsibly converted to commercially useful by-products.

The transaction promotes a circular business model which is important for sustainability. Also, the transactions will benefit Pakistan economically by increasing exports. Additionally, the project will help create jobs, strengthen food production & security, and will improve farmer livelihoods. GH2's vision aligns with that of FMO in promoting sustainable rice farming in Pakistan with plans to increase farmer resiliency and limit climate impact. The transaction received a 100% Green Label.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

GH2's E&S risk category is B+. The main identified environmental and social (E&S) risks are: 1) E&S management system implementation, this will start at construction which has not yet commenced, and 2) E&S and in particular Occupational Health & Safety and labour standards knowledge and capacity of contractors and suppliers. The contractor and supplier risks are increased by the human rights and contextual risks for workers in agriculture and businesses in Pakistan. The land was procured from a single seller - a private limited company, on a willing seller willing buyer principle. No significant vegetation of economic or biodiversity value was observed on the project land. There is also no evidence of peoples identifying as 'indigenous' in or around the project area and no cultural heritage sites are known on or near the site. Based on this, PS 5-8 (Involuntary Resettlement, Biodiversity, Indigenous People and Cultural Heritage) are not considered applicable.

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

Total FMO financing: USD 5.00 MLN

Funding: Building Prospects

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.

GH2 was founded in September 2020 in Lahore, Pakistan, with the purpose of setting up a vertically integrated agri-based manufacturing facility to source (broken) rice and produce rice derivatives for the local and export markets. GH2 is set up by a Pakistani group specialized in developing green energy projects. The project is based near Gharo, Thatta district, in Sindh province.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - GH2 Industries (Private) Limited Client -

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.

https://gh2group.com/project/gh2-industries/

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works