The project sponsor is Mr. Basil El-Baz, an Egyptian entrepreneur, who is also CH’s Chairman and CEO and majority shareholder with 40.49%. Al Nowais Investments LLC owns 16.72%; Mazrui Energy Services LLC 7.70% and Alpha Business Investments Limited 5%. The remaining 31.09% is owned by various well reputed institutions and individuals with experience in the petrochemical sector or other CH related activities with their individual shareholding not exceeding 5%.

The total investment plan of Carbon Holdings Ltd (CH) is estimated at US$82.5 million. IFC is considering a convertible loan of up to US$15 million for IFC’s own account.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

Carbon Holdings Ltd (CH or the Company), headquartered in Cairo, Egypt with its regional office located in Dubai International Financial Centre, UAE, is a privately owned firm that develops and acquires midstream and downstream petrochemical and process industrial plants. CH is the principal shareholder and sponsor of several projects in the industrial zone in the Northwest Gulf of Suez in Ain Sokhna, 120 Km East of Cairo and 3 Km West of the Gulf of Suez, Egypt.

1)Employment: CH''s operating assets employ a large workforce during construction and operations;
2)Support other industries: the output from the operating assets of CH will create and help grow other firms in complementing industries in Egypt which are in turn expected to create jobs and pay taxes;
3)Taxes: CH''s projects in Egypt are taxable entities and are expected to generate tax revenues for the government.

1) Stamp of Approval: IFC''s investment is expected to help CH diversify its shareholding structure to include a well-respected financial institution which would give confidence to potential investors to finance CH''s projects;
2) Sustainable Business: IFC will be able to advise CH on appropriate standards of environmental, safety and social practices;
3) Provide access to industry, E&S and corporate governance knowledge and experts.

Key environmental and social impacts associated to this type of operation include environmental and social management, air emissions, liquid effluents, workplace noise and chemicals exposure, handling of hazardous materials and community related impacts.



The proposed investment qualifies as a Category B project as defined by IFC’s Environmental and Social Sustainability Policy (2012) because of potentially limited environmental and social impacts that may result from the expansion or operation of the existing facilities, all of which can be avoided or mitigated by adhering to generally recognized good practices and design criteria. The company has objectives and plans that seek to address environmental and social risks and impacts in accordance with Egyptian laws and relevant IFC Performance Standards (PS), including the applicable elements of the World Bank Group (WBG) General Environmental, Health, and Safety (EHS) Guidelines; the EHS Guidelines for Nitrogenous Fertilizers Manufacturing, and Petroleum-Based Polymers Manufacturing; and the attached Environmental and Social Action Plan (ESAP).



The proposed project and the route of the pipelines are located in an area devoid of human settlements. Thus, PS 5 – Land Acquisition and Involuntary Resettlement is not considered applicable. None of the plants are located in areas with critical or sensitive ecosystems of flora or fauna; thus, PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources is not applicable. Furthermore, the project’s area of influence is located in areas absent of communities that would be considered as ‘Indigenous’ as defined by the World Bank Group, thus PS 7 - Indigenous People is not considered applicable. Archaeological and historic sites were not found within the project site’s boundaries, thus PS8 - Cultural Heritage will not apply.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.