SAF Pakistan (IFC-49096)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Pakistan
Geographic location where the impacts of the investment may be experienced.
Specific Location
14-Km, Sharaqpur road, Sheikhupura, District Lahore
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
  • 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
Dec 15, 2024
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
BioTech Energy Pvt. Ltd. (SAFCO Venture Holdings Limited)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Industry and Trade
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 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.
Loan 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.
Project Cost (USD)
$ 116.00 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
Media Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 21, 2024

Disclosed by Bank Oct 17, 2024

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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 IFC, SAFCO Venture Holdings Limited BVI (“SAFCO Venture” or the “Company”) is a company established to own and operate biodiesel and sustainable aviation fuel (“SAF”) production facilities in Pakistan. Through its subsidiary Bio Tech Energy Pte Ltd (“BTE”), SAFCO Venture owns and operates a 50,000 tons per annum (tpa) biodiesel manufacturing facility in Sheikhupura, Pakistan. BTE produces second-generation biodiesel (99%) according to EU standards, which is entirely exported to Europe. The Company has developed an extensive oil feedstock collection network in the country with numerous collection points to collect oil feedstocks, including used cooking oil (UCO), poultry feather acid oil, and soap stock acid oil (byproduct of vegetable oil refineries). Through its subsidiary SAFCO Opco (Pvt) Ltd, Pakistan (“Project Company”) the Company plans to expand its operations by developing a Sustainable Aviation Fuel (SAF) facility with a planned capacity of 200,000 TPA adjacent to its existing BTE plant. The Company plans to expand its collection network to meet its increased demand of 180,000 TPA of feedstock for the SAF Project.

IFC is considering a financing package of up to US$30 million (m) consisting of (i) up to US$25 million in the form of preference shares and/or shareholder loans (“IFC preferred equity”), and (ii) up to US$5 million in A-loan, to the Company to fund the construction and operation of the Project.

The SAF facility will use hydro-processed esters and fatty acids (HEFA), an established technology that relies on waste and residue lipids such as cooking oil and animal fats as feedstock, which is available in Pakistan.

BTE is negotiating a technology and supervision consultant agreement with AXENS, a leading French technology company providing clean fuels solutions, to develop the SAF facility. The construction is planned to be completed in 20 months.
To construct the SAF facility, BTE has engaged a consortium of an Indonesian based PTIK (PT Istana Karang Laut) and France based SeaOwl as turnkey Engineering, Procurement, and Construction (EPC) contractor.
Construction of the SAF facility will require 200 local workers from national construction companies plus approximately 15 international workers from EPC contractors.

BTE owns 5.84 acres of industrial land, with an existing BTE plant developed on 2.66 acres. The rest of the 3.18 acres will be used to establish the SAF facility. The SAF facility will produce renewable jet fuel to international standards, and a by-product bio-naphtha (12.5% of production) will be exported. The bio-propane gas (> 2.5%) produced in SAF production will be reused to provide fuel to the SAF facility.

The Client has secured an offtake for five years with Shell International Eastern Trading Company (SIETCO) for both SAF and Bio-Naphtha.

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.

As stated on the project disclosure page, SAFCO Venture is owned by Taimur Shaikh, Ali Shaikh (together, the “Sponsors”). SAFCO Pakistan is 100% owned by SAFCO Venture. SAFCO Venture will be the IFC investee company.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - BioTech Energy Pvt. Ltd. Client Industry and Trade
BioTech Energy Pvt. Ltd. Client Industry and Trade contracts with Axens SA Contractor Industry and Trade
BioTech Energy Pvt. Ltd. Client Industry and Trade contracts with Shell International Eastern Trading Company (SIETCO) Buyer Energy
PT Istana Karang Laut (PTIK) Contractor Energy contracts with SeaOwl Group Contractor Infrastructure
Royal Dutch Shell plc Parent Company Energy owns Shell International Eastern Trading Company (SIETCO) Buyer Energy

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.

Client - SAFCO Venture Holdings Limited:

Mr. Ali Shaikh - Chief Executive Officer
Phone: +923344499712
Email: alishaikh@btechenergy.com
Address: 11, 1st Floor, CCA Block, DHA, Phase-6C, Lahore, Punjab, Pakistan
Website: www.btechenergy.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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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