Summary of Proposed Investment
Project Number
7283
Company Name
PROMIGAS SA ESP
Date SPI Disclosed
May 9, 1996
Country
Colombia
Industry
Metals and Mining
Status
Completed
Sector
Oil and Gas Transport or Pipeline
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Jun 26, 1996
Signed : Dec 4, 1996
Invested : Apr 18, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | COLOMBIA-Promigas V |
| Region | Latin America and The Caribbean |
| Sector |
Projected Board DateJune 15, 1996
Company NamePromotora de la Interconexion de los Gasoductos de la Costa Atlantica E.S.P (PROMIGAS E.S.P.)
Technical Partner and/or Major Shareholders
Promigas'' major shareholders are: Enron Capital & Trade Resources Limited (38.7%); the Scarpetta Group (12.2%); two local finance companies, Corporación Financiera del Valle S.A. (12.4%) and Corporación Financiera Colombiana S.A. (9.9%); IFC (9.2%); and Inversiones Harivalle S.A., a Colombian investment company (5%).
Project Cost Including proposed IFC investment
Estimated project cost is US$55.8 million. IFC''s proposed investment would include an A loan of up to US$10.0 million and a B loan of up to US$20.0 million.
Location of project and Description of site
Promigas'' main asset is a 396 km pipeline with a total capacity of 370 million cubic feet per day located on the northern coast of Colombia. The project will extend Promigas'' coverage from the northern coast into central Colombia.
Description of Company and Purpose of Project (include IFC role\development impact)
Promigas is Colombia''s principal transporter and distributor of gas and petroleum products. The project will support Promigas'' three year expansion program which consists of the construction of a 25 km loop to Promigas'' main line, the acquisition of a 192 km pipeline, the acquisition of an equity stake in the Ballena-Barrancabermeja pipeline, and on-going investments in three of Promigas'' affiliated companies.The company plays an important role in promoting continued economic development through the use of natural gas, which is substantially cheaper than competing energy sources such as fuel oil. The project will improve the technical and economic efficiency of the Colombian gas transportation sector and expand capacity and facilitate increased demand in northern Colombia. In addition, the project will open up new areas of Central Colombia to gas distribution.
Environmental Category and Issues
This is an environmental review category B project. The project promotes the use of natural gas which is much more environmentally friendly than alternative fuels. Environmental, health and safety issues associated with this project include right-of-way construction and maintenance impacts, solid and liquid waste disposal, and employee and public safety. The proposed loop will be constructed in existing right-of-way and has been reviewed and approved by the appropriate authorities in Colombia. An environmental audit has been completed for the existing 192 km pipeline; its recommendations are being organized into a Corrective Action Plan (CAP) for review by IFC.
The is May 10, 1996 from the Public Information Center.
| Date SPI sent to PIC | May 9, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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