25487 - Engro Energy (Pvt) Limited

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental & Social Review Summary

Project Number

25487

Company Name

ENGRO POWERGEN LIMITED

Date ESRS Disclosed

Mar 26, 2007

Country

Pakistan

Region

Middle East

Last Updated Date

Jan 23, 2022

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 31, 2007
Signed : Dec 19, 2007
Invested : Oct 10, 2008

Sector

Gas - Thermal Power Generation

Industry

Infrastructure

Department

Regional Industry INF MCT

Project Description

The Engro project consists of the development, construction and operation of a 217 MW combined cycle power plant to be located in Qadirpur, District Ghotki, Pakistan. The power plant is expected to be a base load plant fueled by low btu (permeate) gas, which is currently being flared. The energy produced will be sold to the single buyer, National Transmission and Distribution Company (NTDC), on the basis of a 25-year Power Purchase Agreement. An associated gas pipeline (approx. 2 km right of way) is being is being designed, built and operated by Sui Northern Gas Pipeline Limited (SNGPL), Engro have no direct stake or involvement in pipeline construction. Notwithstanding, Engro will define a framework to help the company ensure national, local and IFC PS requirements with respect to land acquisition and compensation are met. NTDC’s power evacuation line (approx. 5 km long) will be designed by NTDC to comply with Asian Development Bank safeguards, which are consistent with IFC PS, including land acquisition and resettlement.

Overview of IFC's Scope of Review

The scope of the project review with IFC’s Performance Standards included review of the following documents:

- review of an independent Environmental and Social Impact Assessment (Engro Energy Combined Cycle Power Plant ESIA , February 14, 2007 - see link below);
- assessment of Engro’s management capacity and management systems; and
- review of Engro’s Environmental Action Plan (EAP dated February 14, 2007).
A site visit was also completed by the project team and meetings were held with senior management and the ESIA consultants.

E & S Project Categorization and Applicable Standard

Applicable Performance Standards (PS):

- PS1: Social and Environmental Assessment and Management System- PS2: Labor and Working Conditions- PS3: Pollution Prevention and Abatement - PS4: Community Health, Safety and Security- PS5: Land Acquisition and Involuntary Resettlement

There are no known sensitive habitats (PS6) or Indigenous Groups (PS7) in the project area and no impacts on Cultural Property (PS8) are anticipated. No physical displacement will occur as a result of the acquisition of the power plant site or for the pipeline right of way (ROW).

This is a Category B project according to IFC’s Environmental and Social Review procedures because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The project will comply with applicable air emission standards and will generate carbon credits through utilizing flared gas as the primary fuel source. Key project issues thus relate to land acquisition, public consultation, water supply, air emissions, waste management, community safety, employee health and safety, construction impacts, and pipeline and evacuation line ROW establishment.

Environmental and Social Mitigation Measures

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures listed in the ESIA, comply with the environmental and social requirements - the host country laws and regulations and the IFC PS. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. Further information is provided in the ESIA.

- PS1: Social and Environmental Assessment and Management System

The project ESIA includes an Environmental Action Plan (EAP) addressing mitigation and management actions through all phases of the project. The EAP will define who is responsible for implementing recommended mitigation measures and in what time frame these should happen. The company will develop a management system (through assigning formal line responsibility) to ensure all EAP measures are implemented in a defined and consistent manner. The ESIA recommends, and the sponsor will develop, the following specific plans:

- Water Conservation Plan;
- Waste Management Plan;
- Noise Control Plan;
- Community Safety Plan;
- Reclamation Plan (for land excavated for fill); and
- a Hazardous Materials Management Plan (HMMP).

- PS2: Labor and Working Conditions

The company will develop an HR Policy and an appropriate corporate Occupational Health and Safety plan. When hiring, the company will give priority to local workers in all cases where their skills match available jobs. The HR Policy will provide for freedom of association and a copy of the HR Policy will be given to all employees and explained to them orally as necessary.

- PS3: Pollution Prevention and Abatement

The chosen configuration for the plant results in emissions which meet national and IFC requirements for all air emission parameters. There will be a net greenhouse gas, air quality and emissions improvement through combustion of the permeate gas in the power plant as this gas is currently being flared. The combined cycle configuration of the plant, as compared to simple cycle, is a more efficient system and will result in reduced CO2 emissions as compared with average emissions for oil and gas fired power plants in Pakistan. According to the International Energy Agency Statistics (2005), for the period 2001-2003, Pakistan national average emissions of CO2 per unit of electricity generated was 530 grams of CO2/kWh for gas fired plants and 735 grams of CO2/kWh for oil fired plants. The Engro project will generate approximately 430 grams of CO2/kWh, making it more efficient that the average gas fired plants in the country. The use of high speed diesel for start up (and potential emergency purposes) is not anticipated to exceed 8% of total plant operational time. The company is incorporating a water injection system into the project to ensure compliance with applicable emissions limits for HSD operation of the plant. All liquid waste (from oily water, wash water, storm water, steam blow down, sewage and domestic waste) will be treated on site in a dedicated wastewater treatment plant and drainage system. No discharge to ground or surface is thus expected to cause a negative impact. All solid waste, from construction and operations, will be separated onsite; recyclable waste (paper, plastic, metal, etc.) will be sold to waste contractors and non-usable waste will be disposed of at designated municipal sites. Hazardous waste will be sold to licensed contractors or stored on-site in specially constructed areas until appropriate disposal facilities become available. Contracts with third parties will need to include clauses ensuring compliance with procedures defined in the ESIA and the sponsor will need to monitor contractor compliance.

- PS4: Community Health, Safety and Security

As part of the management and monitoring of construction and operation impacts the company will, as necessary, inform communities about any potential risks associated with increased vehicular traffic around the project site, particularly during construction, and/or other impacts such as establishment of borrow pits. In addition a safety and emergency response plan will be established for the operation of the gas pipeline. Communities will need to be made aware of risks associated with this pipeline. A construction camp, equipped with all necessary (water, power, sewage treatment) infrastructure is being built next to the plant site. This camp will be a stand alone permanent facility with lodging, dining, and entertainment facilities included. The company is exploring the possibility of turning this property over to the local community or landowner for housing based on a cost sharing arrangement yet to be defined.

- PS5: Land Acquisition and Involuntary Resettlement

With respect to land acquisition for the power plant site, the sponsor purchased this land on a willing-buyer willing-seller basis from a single landowner and there is no physical or economic displacement associated with this acquisition. The ROW for the gas pipeline and water pipeline will similarly be acquired on a willing-buyer willing-seller basis and compensation will be paid for loss of arable land associated with these ROW. Land acquisition for the pipelines will also be done in accordance with national/local and IFC PS requirements. The client will document the procedures to compensate the persons affected by the establishment of the ROWs for the two pipelines and will ensure that the compensation procedures meet the objectives of PS5.

Stakeholder Engagement

As documented in the ESIA, consultation with neighboring communities was completed. The main issue raised by communities in relation to the project was access to jobs. As stated in the ESIA the company is committed to hiring local people in all cases where their skills match available jobs. As part of construction and operation impacts the company will, as necessary, inform communities about potential risks associated with increased vehicular traffic around the plant and safety related to the gas pipeline, for which a specific plan is to be developed. The ESIA has been provided to the Sindh Environmental Protection Agency (SEPA) and will be made available locally through the SEPA offices in Sukkur and Karachi. Availability of the document at these locations will be advertised in a local newspaper (in English and Urdu) and the Executive Summary of the ESIA will be translated into Urdu and made available to local communities and stakeholders in the project area. A copy of the ESIA is also available at the company offices in Daharki and Karachi.

For further information please contact:
Mr. Abid Hussain Malik, Project Manager
Engro Energy (Pvt) Limited
PNSC Building, M. T. Khan Road, P.O. Box 5736, Karachi-74000, Pakistan
Telephone: 92-21-561-1060
Fax: 92-21-563-6721

Engro Chemical Pakistan Ltd.
Daharki, Sindh

SEPA
Office of the Deputy Director Regional Office
Bungalow No. A-36
Sindhi Cooperative Housing Society
Sukkur, Sindh

The ESIA can also be accessed at: www.engro.com.

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Similar Projects

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

Press-Release

Related SII

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer