Largest shareholders of EPCL are Engro Corporation (56.19%) and Mitsubishi Corporation (10.24%). Engro Corporation (“ECorp” or the “Sponsor”) is one of Pakistan’s largest and professionally managed conglomerates with business interests in fertilizers, foods, chemical storage & handling, trading, energy and petrochemicals.  ECorp’s main shareholder is Dawood Hercules Corporation. ECorp is listed on Pakistan Stock Exchange. The remaining shareholding is distributed among various institutions and general public.

 The total project cost is estimated at around US$92.3 million. The proposed IFC investment is an A loan for IFC’s own account for up to US$35 million.                                              

 This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability as the E&S impacts are mostly site specific and localized and can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria and adequately managed through the implementation of an expansion work specific Environmental and Social Management Plan.

The investment involves incremental increase of PVC production and enhanced productivity of an existing plant, and upgrading of a gas turbine to reduce gas consumption, all within Engro’s industrial plant footprint. The project site is located in a massive industry park, established in 1970s, with the nearest community approximately six km away. There is mangrove marsh near the project location, however assessment has shown that the project does not have direct impacts to the mangrove. Mitigation measures for the potential environmental and social impacts are identified and incorporated into the attached Environmental and Social Action Plan (ESAP).

Specific key environmental and social issues reviewed include: i) project sponsor’s corporate environmental and social management capacity to operate in a manner consistent with IFC Performance Standards; ii) environmental and occupational safety aspects typically associated with operations of chemical plants; iii) efficient use of energy and water resource in operational phase; iv) life and fire safety (LFS) conditions of the project; and v) wastewater treatment and disposal.