JIFCO is a Jordanian Limited Liability Company with 52% of its shares held by IFFCO while JPMC holds the remaining 48%. IFFCO, the largest producer of fertilizers in India, was established in 1967 in the Cooperative Sector with majority shareholding by the Government of India (“GoI”). By 2004 GoI's equity was fully divested by subscription from the Cooperative Societies. IFFCO's entire equity is now held by over 39,000 cooperative societies and 26 marketing federations spread across the country, representing over 50 million individual farmers. IFFCO owns and operates five fertilizer plants in India with a combined annual capacity of 8.58 million tons of fertilizers, including over 4 million tons of phosphatic fertilizers. JPMC is a Jordan based company listed on the Amman Stock Exchange, established in 1953 as a public shareholding company with the objective to mine and market phosphate rock, as well as produce fertilizers and invest in related industries. JPMC operates three mines, producing phosphate rock and downstream fertilizers, and a chemicals plant at Aqaba, Jordan producing phosphoric acid, DAP, sulfuric acid and aluminum fluoride. JPMC is the largest mining and industrial employer in Jordan and is the sixth largest producer of high quality rock phosphate and the second biggest exporter worldwide.

The total Project cost is estimated at about $681 million. The proposed IFC investment includes up to $150 million A Loan for IFC’s own account and up to $300 million in syndicated B Loan and Parallel Loans.

125.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	125.0
Equity

* These investment figures are indicative

The chemical complex and associated infrastructure and utilities will be located adjacent to the existing JPMC mining facility in Eshidiya, Ma’an, approximately 250 km south of Amman, and 120 km north east of Aqaba Port, from which phosphoric acid will be exported. Aqaba is connected to the Project site by road, as well as by railway which lies 30 km from the site. The nearest city, Ma’an, is about 75 km from Project site, with an estimate population of approximately 50,000, and has the second highest poverty level among Jordanian governorates.

The expected development impact of the Project includes: (i) creating permanent employment opportunities in the Project area (estimated 440 permanent jobs) as well as temporary construction jobs (estimated 750 on average); (ii) helping increase Jordan's industrial exports by generating approximately US$2 billion in export revenues over the life of the proposed IFC investment; and (iii) linkages with national suppliers as the Project is expected to award at least US$140 million worth of contracts to local firms. In addition, the Project is assisting the largest fertilizer producer in India to meet increasing demand for fertilizer by Indian farmers, particularly in the supply of phosphate, a critical element in nutrient growth and part of the Government of India's strategy to increase its usage. As part of project supervision process, IFC will track the following indicators: (a) number of new jobs created, (b) export revenues from the Project, and (c) amount of contracts awarded to Jordanian firms.

Long-term Finance and Mobilization: The Project is by its nature capital intensive and requires very long tenors and structured repayments which under leadership of IFC can be provided by Participant Banks as well as by the parallel lender - EIB. Structuring Expertise and Honest Broker: IFC's sector expertise helps in structuring the off-take and supply agreements to ensure the investment is bankable and based on arms-length transactions. IFC's structuring expertise has been actively sought out throughout the project preparation phase. Provision of technical and E&S expertise: IFC have been sharing its technical and environmental and social expertise to ensure the Project is prepared and operates under internationally accepted technical standards. Long-term Partner: The Sponsors view IFC as a long-term partner: (i) JPMC due to its strategy to forward integrate into higher value added products such as phosphoric acid and DAP, and (ii) IFFCO due to its strategy to backward integrate into raw-materials (which are not available in India) through investments in emerging markets with feedstock availability.

This is a Category B project according to IFC’s Environmental and Social Review procedures, since only a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The applicable Performance Standards for this investment include those dealing with Social and Environmental Assessment and Management Systems; Labor and Working Conditions; Pollution Prevention and Abatement; Community Health, Safety and Security; Biodiversity Conservation and Sustainable Natural Resource Management; and Cultural Heritage.