Project detail - OILTANKING MOGS SALDANHA (RF) PROPR

OILTANKING MOGS SALDANHA (RF) PROPR

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Who is our client

FMO’s client is Oiltanking MOGS Saldanha South Africa. This transaction concerns the financing of a new state of the art crude oil storage and blending facility in the Port of Saldanha Bay, South Africa.

Funding objective

FMO and two other development finance institutions being DEG (Germany) and the Industrial Development Company of South Africa, jointly aim to support the construction of a new oil storage facility which will be unique in South-Africa.

Why we fund this project

The project is important for South Africa as it generates employment in a deprived area, knowledge transfer as well as inflow of hard currency. Once it becomes operational the facility will improve transport times for tanker vessels.

Environmental and social rationale

Main environmental and social (E&S) risks are related at normal operation to fire and explosion hazards for employees, isolated neighboring communities, marine environment (RAMSAR Site) and to air emissions. The construction phase has the typical greenfield E&S risks (occupational health and safety, oil spills, labor conditions). Environmental, safety and social studies according to international standards were realized and complemented by an E&S assessment according to IFC Performance Standards. E&S management systems, policy and procedures according to national and international standards will be gradually implemented. An environmental and social action plan will be contractually agreed upon in order to close gaps to the DFIs' E&S requirements. While all Performance Standards are applicable to this investment, FMO’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS 1: Assessment and Management of Environmental and Social Risks and Impacts; PS 2: Labor and Working Conditions; PS 3: Resource Efficiency and Pollution Prevention; PS 4: Community Health, Safety and Security; PS 5: Land Acquisition and Involuntary Resettlement; PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; PS 8: Cultural Heritage. Based on a review of the Project, IFC Performance Standard 7 (Indigenous Peoples) was not determined to be applicable. There are no groups of people that meet the definition of Indigenous Peoples in the Project’s area of influence.

Region
Africa
Country
South Africa
Sector
Infrastructure, Manufacturing and Services
Signing date
6/4/2018
Total FMO financing
USD 30.00 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)
A