IFC is considering a loan to support Fertil Pampa S.A.U., a wholly owned subsidiary of Pampa Energia S.A., for the construction and operation of a greenfield granulated urea fertilizer plant in Bahia Blanca, Buenos Aires Province, Argentina.

The facility will be located on an approximately 80-hectare site adjacent to existing Pampa power generation assets. It will benefit from proximity to existing gas pipelines, high-voltage transmission lines, water intake infrastructure, and a deep-water export port, enabling both domestic distribution and international exports.

The project will comprise: (i) an ammonia and carbon dioxide production plant, supplying key feedstocks for urea manufacturing; (ii) two parallel urea production trains, each with its own granulation unit, with a combined production capacity of approximately 6,000 metric tons per day (MTPD) of urea; (iii) auxiliary utilities, including seawater treatment facilities and systems for compressed air, steam, and nitrogen; (iv) an ammonia storage tank; and (v) logistics infrastructure for the dispatch of urea by truck and for the shipment of ammonia and urea by vessel.

The facility will include one ammonia and carbon dioxide production train feeding two urea production trains. The project is expected to rely on: (i) natural gas supplied via a dedicated pipeline; (ii) electricity supplied through connection to Argentina’s National Interconnected System (SADI); (iii) desalinated seawater for plant operations; and (iv) maritime logistics through a dock. To support these requirements, the project will include: (i) construction of a natural gas pipeline connecting the plant to the existing gas network; (ii) development of a new transformer substation (ET PEUREA) and grid connection to the SADI; (iii) a viaduct over the Bahia Blanca estuary linking the plant to the dock; and (iv) a water supply pipeline connecting seawater pumping facilities at the Piedra Buena thermal power plant to the project site.

Construction will be carried out under an Engineering, Procurement and Construction (EPC) contract and is expected to take approximately 3.5 to 4 years. The operational phase is expected to extend over an estimated 30-year lifespan, with planned maintenance shutdowns approximately every four years. The project is expected to generate approximately 3,500 jobs during construction and around 250/300 permanent jobs during operation.

Environmental and social studies are currently being prepared to assess and manage potential risks and impacts associated with the project, including those related to air emissions, water use, hazardous materials management, transportation, and community health and safety. The Project remains subject to internal approvals by the Company and to further review by the Company and the applicable regulatory and environmental authorities. Accordingly, the information contained herein may be subject to change.

These studies will inform IFC’s environmental and social due diligence. The preparation and disclosure of this project description should not be interpreted as an indication that IFC has completed its review of the potential investment. Upon completion of the environmental and social review, an Environmental and Social Review Summary (ESRS) will be prepared and disclosed on IFC’s website.