Summary of Proposed Investment
Project Number
8682
Company Name
PRYCE GASES, INC.
Date SPI Disclosed
May 29, 1998
Country
Philippines
Industry
Manufacturing
Status
Completed
Sector
Industrial Gases
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Jun 30, 1998
Signed : Jun 17, 1999
Invested : Jul 13, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Philippines-Pryce Gases, Inc. |
| Region | Asia |
| Sector | Industrial and Consumer Services (Liquefied Petroleum Gas (LPG) Distribution) |
Project No008682
Projected Board DateJune 29, 1998
Company NamePryce Gases, Incorporated (PGI)
Technical Partner and/or Major Shareholders
Pryce Gases, Inc. is owned 89.2% by Pryce Corporation, 5.4% each by (i) Strategic Investment Holdings, Ltd. (Cayman Islands), managed by Clemente Investment Management Ltd. of New York; and (ii) the Manila Fund, managed by Indosuez, Manila. Pryce Corporation is a Mindanao based property holding and real estate development company and a member of the Pryce Group which also has interests in insurance, securities trading and financial services.
Project Cost Including proposed IFC investment
The Project cost is estimated at about US$54 million. IFC would provide US$3 million in convertible debt and a US$15 million loan of which US$10 million would be for IFC’s own account and the remaining for the account of participant banks.
Location of project and Description of site
Mindanao and the Visayas group of islands located in south and central Philippines. Mindanao is a priority area for development following the peace accord signed in September 1996.
Description of Company and Purpose of Project
Pryce Gases, Inc. is engaged in the distribution of LPG since 1996 and the production and distribution of industrial gases since 1988. It is currently the second largest industrial gas supplier in Visayas and Mindanao. The Project is an expansion of the LPG distribution business following the deregulation of the oil industry, which liberalizes importation of LPG and encourages competition in the sector. The project consists of the installation of seven marine and 14 lorry terminals with a capacity of 6,590 mt for receiving, storing and distributing LPG in the underdeveloped areas of Mindanao and the Visayas. The Company expects to sell about 120,000 mtpy of LPG by the year 2002.
Environmental Category and Issues
This is a Category B project according to IFC’s environmental review procedure. Environmental, occupational health and safety issues associated with this Project include: site selection and site history for refilling plants, hazard assessment for LPG storage, environmental and safety performance of existing industrial gas operations, storage of fuels and industrial chemicals used for plant and vehicle operations, liquid, solid and hazardous waste disposal, fire protection and emergency response, and general worker health and safety. Information submitted to IFC by Pryce demonstrates that the effects of land acquisition have been satisfactorily mitigated. Sites have been selected such that adequate safety distances can be provided during plant design and layout to minimize risks to surrounding populations; and Pryce will provide documentation regarding site designs to IFC prior to disbursement. Pryce has in place Safety and Emergency Response Procedures for LPG terminal and depot operations.
The is from the InfoShop.
| Date SPI sent to InfoShop | May 29, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
L:\CA1G2\PHILIPPINES\Pryce Gases SPI.doc
May 29, 1998 3:29 PM
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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