PROJECT

Projects

Environmental & Social Review Summary

Project Number

46252

Company Name

Sama Al Manar for General Trading, Animal and Agriculture Production, Industrial Production, Oils

Date ESRS Disclosed

Apr 28, 2023

Country

Iraq

Region

Middle East

Last Updated Date

Apr 10, 2024

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Jul 25, 2023
Signed : Dec 13, 2023
Invested : Apr 3, 2024

Sector

Diversified Edible Agricultural Crops Production

Industry

Agribusiness and Forestry

Department

Regional Industry MAS MCT

Project Description

 The proposed IFC investment is a project finance loan with use of proceeds to support an investment of up to US$112.5 m (US$66 m from IFC’s own account and the remaining amount to be syndicated) for the development of a US$205.5 m agro-industrial complex, including soybean crushing plant and warehouses at Berth 4 of the Umm Qasr Port in Iraq (the Project). The Sponsor of this project is Tiryaki Agro Gida Sanayi Ve Ticaret A.S. (“Tiryaki” or the “Sponsor”) which is a leading agricultural commodity trading company in Türkiye (https://tiryaki.com.tr/en/). Sama Al-Manar for General Trading Company (the “Company), of which Tiryaki is a shareholder, will execute the Project. Tiryaki was an IFC portfolio client (https://disclosures.ifc.org/project-detail/ESRS/34061/tiryaki-ii) with a satisfactory E&S performance at exit. The Umm Qasr Port, located in the south of Iraq, is Iraq’s main port. The closest community settlement, Umm Qasr town, is 2 km from the project site. The project site covers an area of 171,000 m2.

 

Soybean will be imported from Brazil and Argentina and processed locally into by-products, such as soybean meal, oil, lecithin, and hull. Corn will be imported from various countries, only be stored, and distributed. The project’s storage is estimated at 145,000 tons and crushing capacity at 900,000 tons / year. The company’s operations primarily comprise storage of soybean and corn, soybean dehulling, flaking, crushing, oil extraction, distillation, and degumming, soymeal desolventizing, toasting, drying, and cooling.

 

Manarat Umm Qasr Company (Manarat) signed a contract with the General Company for Ports of Iraq (GCPI / “Port Authority”) to rehabilitate and operate Berth 4 of the Umm Qasr Port. The rehabilitation of the berth has been completed. Manarat and Sama Al Manar signed a partnership agreement for the operation of Berth-4 and the backyard facilities in October 2020. Manarat will be responsible for maritime cargo operations of soybean products and corn by the company. Sama Al Manar signed an EPC contract for the construction of the soybean crushing plant. 65% of the construction was completed as of March 2023. The project is expected to be commissioned by October 2023.  

Overview of IFC's Scope of Review

 IFC’s E&S review of this investment included (i) meetings in August with Tiryaki E&S management team and in January 2023 with Sama Al Manar project general coordinator, construction manager, human resources (HR) manager, technical manager, HSE manager, facility manager, quality assurance chief, production chief, utilities chief, Environmental and Social Impact Assessment (ESIA) consultants, Manarat’s general manager, Umm Qasr Port technical manager and contractors’ E&S chiefs; (ii) interviews with randomly selected construction workers; (iii) review of E&S documents and information provided, including Tiryaki’s E&S policies, EHS Procedures and E&S management system, Sama Al Manar’s draft ESIA study, construction stage EHS management plan, EHS and HR/social functions, at the sponsor and company level, EHS permits, HR policies and procedures, Supplier Code and third-party supplier mapping and risk screening, OHS statistics, emergency preparedness and response plans, and labor/EHS contractual terms and conditions issued to construction contractors.  

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
ESIA-Soybean Oil Poroject-10-12-2023.pdf