Indorama Eleme Fertilizer (DFC-ELEME)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Nigeria
Geographic location where the impacts of the investment may be experienced.
Specific Location
Eleme, Port Harcourt; Onne Port Complex; Aleto, Okerewa, Agbonchia, Njuru, Akpajo, Elelenwo
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
  • US International Development Finance Corporation (DFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
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."
Borrower
Indorama Eleme Fertilizers and Chemicals 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
  • Energy
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Project Cost (USD)
$ 74.20 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 @ DFC website

Updated in EWS Oct 14, 2023


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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.

As stated by the DFC, the Project involves development of a third train for the production of ammonia at the rate of 2,300 metric tonnes per day (MTPD) and granulated urea at the
rate of 4,000 MTPD (Line 3 Plant) at the existing petrochemicals complex of Indorama Eleme Fertilizer and Chemicals Limited (IEFCL). The third train will be constructed adjacent to the first and second trains with a similar production capacity. The first train was commissioned in 2016, with funding from IFC and other DFIs. Natural gas will be used in a steam reformer to generate hydrogen which will then be combined with nitrogen from the air to manufacture ammonia. Ammonia will then be reacted with carbon dioxide from the steam reformer to manufacture granulated urea. Natural gas is currently being piped to IEFCL’s petrochemicals complex from nearby gas fields. The gas supply company will transport gas for the third train by adding another pipeline in the pipeline corridor in an existing right-of-way.

The Line 3 Plant will contain steam production, cooling tower, water treatment, product handling, power generation, nitrogen plant, air and instrument air, passive and active firefighting systems, along with product storage and material handling facilities. In addition, the expansion of production facilities will result in an estimated surplus of
400 MTPD of ammonia. To facilitate exports of fertilizer and ammonia, IEFCL will also undertake the construction of a dedicated jetty, the Line 3 Jetty. Positioned approximately
20 kilometers from the fertilizer production site, at the Onne Port Complex, this planned jetty will expand Indorama’s existing export infrastructure capacity by providing
necessary storage and export capabilities for the surplus ammonia and bulk urea produced by Line 3. The jetty is considered an associated facility to the Project.

A complaint on behalf of IEFCL employees was filed with IFC’s CAO in 2018. The CAO is currently undertaking a compliance review of the case and is in the monitoring phase.

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

No information on DFC's investment available at the time of disclosure.

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.

As stated by the IFC, Indorama is "a global business entity with US$29.6 bn in revenues. Indorama was established in 1976, and it is wholly owned by Mr. S.P. Lohia and family. Indorama manufactures polyester, polyethylene terephthalate (PET) resins and bottles, polyester intermediates, polyethylene, polypropylene, spun yarns, fabrics, disposable gloves, hygiene, and fertilizers. Indorama is the world’s largest producer of polyester and PET resins as well as one of the fastest growing global petrochemical producers with a presence in 39 countries across 175 sites across Asia, Europe, Africa, and Americas."

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Indorama Eleme Fertilizer & Chemicals Ltd Client Industry and Trade

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.

A copy of the Environmental and Social Impact Assessment (ESIA) may be found at the following locations -

Indorama Eleme Fertilizers & Chemicals Ltd:

Indorama Petrochemicals Complex, East -West Expressway, Eleme, PMB-5151, Port Harcourt, Rivers State, Nigeria

Federal Ministry of Environment, EIA Division:

Environment House, Independence Way, South Central Business District-FCT, Abuja, Nigeria

ACCESS TO INFORMATION

Unlike many other development finance institutions, DFC does not currently have an access to information policy.

Under the United States Freedom of Information Act (FOIA), DFC is obliged to respond to reasonably formulated requests for Agency records. However, DFC may apply exemptions from release to certain types of information and may charge fees in responding to requests. DFC has a designated FOIA officer who is trained in how to respond to requests and implement the law. You can learn more about filing a FOIA request at: https://www.dfc.gov/foia

ACCOUNTABILITY MECHANISM OF THE UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION (DFC)

The Office of Accountability is an independent office that addresses complaints about environmental or social issues related to DFC-supported projects. The office provides communities an opportunity to have concerns independently reviewed and addressed. If you submit a complaint to the Office of Accountability, it may assist you by either seeking to address your problems by facilitating a problem solving dialogue between you and those implementing the project and/or investigating whether the DFC complied with its policies to prevent environmental, social, human rights, and labor harms.

You can find more information about the Office of Accountability at: https://www.dfc.gov/who-we-are/office-accountability

How it works

How it works