EPCL Expansion (IFC-42974)

Countries
  • Pakistan
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
Proposed
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
Feb 27, 2020
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
ENGRO POLYMER & CHEMICALS LIMITED
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)
$ 15.00 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)
$ 40.00 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.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS May 18, 2020

Disclosed by Bank Jan 27, 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.

According to bank documents, "As a follow-on to expansion under Phase-III (Project IFC-41160), ENGRO Polymer & Chemicals Limited (EPCL) is now pursuing an optimization plan, (the “project”), to including:

(i) implementing Oxy Vent Recycling (OVR) system to reduce manufacturing costs; which will reduce the raw material requirement by 2%, lowering the atmospheric release of ethylene di-chloride (EDC) by 6 kg/ton of VCM.

(ii) introduce Hydrogen Peroxide (H2O2) to its product suite by becoming the first producer in the south of the Country; and

(iii) Working capital.

With this increased local availability of Hydrogen Peroxide (H202) in the Country, customers will benefit from shorter delivery time and lower inventory costs.
The Project is also expected to maintain the Company's competitiveness through value addition, and will create jobs and enable transfer of technical and managerial know-how.
IFC anticipates that the Project will lead to increased competitiveness of the PVC and base chemicals sector, which will support the growth of the main users of these products such as the textile, building and construction sector."

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

Engro Polymers and Chemicals Limited (“EPCL” or the “company”), is the only fully integrated chlor-vinyl chemical complex in Pakistan. The company is involved in the manufacture, marketing and distribution of poly-vinyl chloride (PVC) and selling of chlor-vinyl allied products including Vinyl Chloride Monomer (VCM), Caustic Soda (NaOH), Hydrochloric Acid (HCl), Sodium Hypochlorite (NaOCl) and Hydrogen (H2).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Engro Polymer and Chemicals 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.

Engro Polymer & Chemicals Limited
Syed Abbas Raza
Chief Financial Officer
+92-21-35166863-64
saraza@engro.com
12th Floor, Ocean Tower, G-3, Block 9,Clifton Khayaban-e-Iqbal, Karachi-75600Pakistan
www.engropolymer.com

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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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