Nigeria – Indorama Fertilizer Project II - Additional Loan (AFDB-P-NG-BG0-003)

Countries
  • Nigeria
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
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
U
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
Dec 18, 2019
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
Eleme Fertiliser and Chemicals Limited (IFL)
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
  • Mining
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 15.80 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.
Currency conversion note:
Bank reported U.A 21,952,129.72
Converted using 2019-12-18 exchange rate.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ AFDB website

Updated in EWS Jun 14, 2020

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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.

This intervention relates to the Additional Loan of the Indorama Fertilizer Project II. Indorama Eleme Fertiliser and Chemicals Limited (IFL) is a registered legal entity in Nigeria and the owner of a world scale, lead technology urea fertilizer plant. The plant which began operation in May 2016 is located on Indorama Eleme Petrochemicals Limited (IPL) site in Port Harcourt, River State and produces 1.4 million MTPA of urea fertilizer. The project consists of the expansion of IFL's existing fertilizer complex in Port Harcourt, Nigeria from 1.4 to 2.8 million TPA by adding a new and identical train to the existing fertilizer plant. The new fertilizer plant (Line II) will consist of (i) Ammonia unit with a single train of 2,300 metric tons per day (MTPD); (ii) Urea unit with a single train of 4,000 MTPD granular urea; (iii) Urea granulation unit with a single train of 4,000 MTPD design capacity; (iv) Additional small urea granulation unit of 800 MTPD design capacity and (v) Inside boundary infrastructure, utilities and storage facilities. The African Development Bank participate to this additional loan as a senior lender with a long-term loan of up to USD 30m. This will represent less than 33% of the total project cost of USD 185m.

The main objective of the project is the construction and operation of a Greenfield 1.42 MTPA ammonia/urea fertilizer plant to be located in Port Harcourt, River State, Nigeria.

The project will benefit Nigerian farmers through increased availability of world class fertilizer at prices close to international markets (domestic premium is expected to decrease to USD 25 per ton over the project life compared to current levels of USD 85 per ton). The additional loan will help to create additional 1000 full-time jobs and 10 part-time jobs during the construction phase, which corresponds to 1006 full-time equivalent jobs (of which 75% are for locals). An additional 25 full-time jobs (of which 60% are for locals) are expected during the operation phase.

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

private-sector@afdb.org

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/.

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