47823 - MAS Crisis Response

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Summary of Investment Information

Project Number

47823

Company Name

MAS CRISIS RESPONSE

Date SPI Disclosed

Mar 14, 2023

Country

Pakistan

Region

Middle East

Projected Board Date

Apr 28, 2023

Environmental Category

C - No Impact

Status

Hold

Last Updated Date

May 19, 2023

Department

Regional Industry MAS MCT

Industry

other

Sector

Other

Project Description

Due to current status of Pakistan’s foreign exchange reserves, private companies in Pakistan are facing challenges in securing US$ denominated letters of credit (LCs) to import essential raw materials and equipment for ongoing operations. Many companies are operating at reduced capacities and foreseeing shutdowns due to lack of inputs for production, which could lead to large scale job losses across industries in Pakistan.

To address this critical and urgent issue, IFC proposes to make available an up to US$500 million (mn) in debt financing to select companies (the “Borrowers” or the “Corporates”) to finance their critical imports and related US$ expenses (the “Project”) required for business continuity. The Project is sector agnostic and individual borrowers are expected to be top tier companies with leading market position in their respective sectors and strong credit standing.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

The Project will exclusively support business activities of selected Corporates in Pakistan by short-term US$ financing to facilitate import of essential raw materials and equipment to maintain their production. The funding under the Project will be available to the Corporates for three years with individual loans having bullet repayment every 12 months and annual recommitment subject to satisfactory environmental and social (E&S) performance reporting and IFC’s review at the project level, confirming that there are no material E&S issues that cannot be mitigated under the existing E&S management system.

There are no adverse E&S risks and impacts at the Project level, which only carries purely financial implications, hence it is categorized as C. Potential risks and impacts occur at the sub-project level, and therefore each proposed sub-project will be reviewed separately and categorized following the review, according to its risk profile. Sub-projects are expected to result in physical activities with potential minimal or limited adverse E&S risks and impacts, hence classified as E&S Category C or B, in accordance with IFC’s Policy on Environmental and Social Sustainability (2012).

The applicable E&S requirements for the Project will be the IFC Exclusion List, host country laws and regulations and the IFC Performance Standards.

The Project will not support Corporates in any activities on IFC's Exclusion List, coal-related activities, and/or business activities with potential significant adverse environmental or social risks and/or impacts that are diverse, irreversible, or unprecedented (E&S Category A).

Upon submission of appropriate information on an eligible sub-project by a Corporate, IFC will review and appraise the sub-project in accordance with its Policy and procedures for environmental and social review of projects, and with regard to the applicable Performance Standards and applicable environmental, health and safety guidelines. The ESDD will focus on key E&S risks and issues which will include: (i) the capacity, maturity, and reliability of the Corporate’s E&S management system to effectively monitor and manage E&S risks, including those related to supply chains, (ii) policies and procedures on labor and working conditions, including occupational health and safety (OHS) and gender-based violence (GBV) risks; (iii) stakeholder engagement and grievance mechanism available to manage and address workers and community complaints. The contextual risk screening carried out identified the following as relevant risks and issues at the country level: labor and working conditions, OHS, gender and GBV.

IFC will disclose E&S information through Project-specific Summary of the Investment Information (SII) for Category C sub-projects, however, for Category B sub-projects, an Environmental and Social Review Summary (ESRS) will be made publicly available at least 30 days prior to commitment of individual loans under the Project.

Contacts

For Inquiries About the Project, Contact

For Inquiries and comments about the project please contact:

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Local Access of Project Documentation

Details will be provided in through Borrowers’ specific SII.

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 Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. 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 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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