33538 - GTST SIR

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Summary of Investment Information

Project Number

33538

Company Name

RISK SHARING FACILITY SOCIÉTÉ IVOIRIENNE DE RAFFINAGE

Date SPI Disclosed

Jul 2, 2013

Country

Cote D'Ivoire

Region

Africa

Projected Board Date

Aug 1, 2013

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Nov 30, 2016

Department

Gbl Ind, Manufact, Agribus & Services

Industry

Financial Markets

Previous Events

Approved : Aug 7, 2013
Signed : Oct 10, 2013
Invested : Jun 5, 2014

Sector

Trade Finance

Project Description

The proposed project consists of a US$300 million two year trade facility (“Facility”) to provide the necessary financing to Société Ivoirienne de Raffinage (“SIR”) - a refinery in Cote d’Ivoire- for its importation of crude oil. Cote d’Ivoire is an IDA country which is also conflict affected. The refined products are to serve the domestic market in Cote d’Ivoire and regional markets of Burkina Faso and Mali, and other international markets.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	50.0
Loan	50.0
Equity

Development Impact

The proposed investment will have significant development impacts as follows:
1. Increased Access to Trade Finance Lines: The Facility will finance up to US$2 billion of energy imports to Cote d''Ivoire over two years by providing much needed reasonably priced trade lines for its cross border flows. It will support a fragile economy''s growth and generate financial savings for a strategic enterprise which could serve to retool and improve its productive and operational capacity. Improved supply of refined products would also have a positive impact on the country''s macroeconomic stability and GDP growth.
2. Support to SIR , and Downstream Operators: By providing adequate and much needed financing, the Facility will help the Company''s stabilization plan. As a result, many jobs will be preserved. In addition, it would benefit other agents who are on its supply chain, such as local private companies involved in transportation, distribution, and retail of refined oil products. This will support employment in these companies, an important factor given the high level of unemployment rate in the country.
3. Revenue to the Government: The Project will help the government of Cote d''Ivoire''s finances, especially through taxation and indirectly through reduction in production costs due to savings resulting from lower financial expenses. .

1. Financing Gap and Strong Signaling Effect: With the help of IFC''s financing, the Company, can access commercial and official sources of funding for its cross border trade finance needs at reasonable cost and replace its past "default option" of suppliers'' credit which the company was forced to utilize during the war. IFC''s presence is expected to bring other commercial banks and DFIs to the deal. The success of the US$300 MM project in an IDA post-conflict country will send a strong signal to the markets regarding Cote d''Ivoire and the Company after several years of hiatus, and is a vote of confidence for the reforms being undertaken.

2. Availability of Fuel at More Reasonable Cost to the Economy: The facility will set financing terms over the facility life, and therefore protects oil imports of the country from financing challenges for that term. In addition, by broadening the financing sources available to the Company, IFC will help the company access to finance at a lower cost than what the company currently has.

E&S Category Rationale / Risks and Mitigation

The project has been classified as a Category FI-2 project according to IFC’s Environmental and Social Review Procedure. The proposed investment is a risk-sharing facility with SG, to support a short-term trade finance facility for the importation of crude oil by SIR. The refinery follows TOTAL’s process/safety procedures and its Environmental Health and Safety (EHS) management is ISO 14001 certified. The project is considered to have limited adverse environmental and social risks and impacts which are largely reversible and can be managed through mitigation measures.

The main E&S risks and impacts relate to the management of environmental, social, health and safety risks associated with refinery operations by SIR and how these are identified and assessed by SG (and IFC). SG is an Equator Principles Financial Institution and the bank has E&S risk management procedures to identify and manage E&S risks associated with its lending activities; the bank also has an Oil & Gas E&S Policy which covers the assessment of risks for refineries.

Given the nature of this transaction, during appraisal, IFC (and SG) assessed the key E&S issues related to the operations of the refinery. The key areas of concern identified are: safety of nearby residential community, inadequate solid waste management, non-compliance of air emissions and effluent quality with local requirements and World Bank EHS requirements. These issues need to be addressed by SIR.

Contacts

For Inquiries About the Project, Contact

Société Générale GLFI/NAT 17 Cours Valmy 92897 Paris LA Défense cedex

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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.

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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.

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

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII 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 SII 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 SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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.

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