Project detail - INDORAMA ELEME FERTILIZER AND

INDORAMA ELEME FERTILIZER AND

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Who is our client

Indorama Eleme Fertilizer & Chemicals Limited (“IEFCL”) is the world’s largest a single train urea fertilizer plant located in Port Harcourt, Nigeria with a capacity of 1.4mln tons per annum. Commercial operations commenced in October 2016. Sponsor is the Indorama Group.

Funding objective

The purpose is to fund the construction of a second urea fertilizer plant to be located on the same premises next to the existing production line, which will expand current capacity from 1.4mln tons to 2.8mln tons per annum.

Why we fund this project

The proposed project supports domestic fertilizer consumption in Nigeria and promotes the successful use of arable land which should increase yields and food security. The Company has forward linkages with the farmers that are concentrated around education of farmers on best practices on crop production and fertilizer management to help in the reduction of input cost and waste while increasing yields. Furthermore, the expansion will boost local job creation. The project is a climate friendly investment, reducing gas flaring by using natural gas for the ammonia and urea production, combined with an energy efficient design of the plant that compares with the most efficient global plants.

Environmental and social rationale

E&S category is B+ as the potential adverse E&S risks and/or impacts are generally site-specific, largely reversible and can readily be addressed through thorough Good Industry Practice mitigation measures. IFC Performance Standards 1-4 (Management, Labor, Resource Efficiency and Community) are triggered. IFC Performance Standards 5-8 are not triggered since no new land will be acquired, and while the expansion will take place within the current premises, there will be no impact on biodiversity or cultural heritage. Finally, there are no Indigenous People identified within the areas of influence of the project.

More investments

Date Total FMO financing
3/8/2017 USD 18.85 MLN
2/18/2013 USD 30.00 MLN
Region
Africa
Country
Nigeria
Sector
Agribusiness, Food & Water
Signing date
6/12/2018
Total FMO financing
USD 40.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+