Project detail - OILTANKING MOGS SALDANHA (RF) PROPR

OILTANKING MOGS SALDANHA (RF) PROPR

Status: Approved investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

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.

What is our 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 do we fund this investment?

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.

What is the Environmental and Social categorization 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
Effective date
6/4/2018
Total FMO financing
USD 30.00 MLN
Funding
FMO NV
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