Project detail - Indorama Eleme Fertilizer & Chemicals Limited

Who is our prospective customer?

An entity of the Indorama Group, Indorama Eleme Fertilizer & Chemicals Limited (“IEFCL”) is a brownfield urea fertilizer project of 2 plants, with current capacity of 2.8mln tons per annum, located near Port Harcourt, Nigeria.

What is our funding objective?

The purpose is to fund the construction of a third urea fertilizer plant to be located on the same premises next to the existing production lines, which will expand current capacity from 2.8mln tons to 4.2mln tons per annum. A dedicated jetty/port terminal with sufficient capacity to export all the Line 3 urea, and to be located approximately 20 kilometers from the IEFCL site, at the port of Onne, is also planned.

Why do we want to fund this investment?

The proposed project will support fertilizer consumption and promotes the successful use of arable land which should increase crop yields and food security. Sales marketing strategy of IEFCL is to increase its sales of fertilizer to Africa and the world. In Nigeria specifically, IEFCL is providing several services for the education of farmers on best practices on crop production and fertilizer management to help in the reduction of input cost and waste while increasing yields. Furthermore, the expansion will support local job creation, almost exclusively sourced from the Niger Delta region. The project will be partly labelled Green (SDG10), as it uses the best available techniques when compared to other plants and contributes to the reduction of gas flaring by using natural gas for the ammonia and urea production. The project will include an expansion of the existing gas power plant at Line 3 through the addition of a single gas turbine to provide further redundancy in power generation. The expansion of the power plant is excluded from the FMO use of proceeds, in line with FMO Fossil Fuel policy.

What is the Environmental and Social categorization rationale?

The FMO E&S category is B+. The Line 3 expansion is adjacent to existing Lines 1 and 2 and within the larger industrial site. No new operational risks were identified with changes to existing on-site and community risks expected to be cumulative in nature and brought about by the expansion in capacity. The proposed new jetty complex is situated within the Onne Port which is impacted by the initial port construction and current port activities. The IFC Performance Standards applicable to both the Line 3 and jetty projects are PS1 to PS4. The completed Environmental and Social Impact Assessment (ESIA) for Line 3 confirmed that PS5 ‘Land Acquisition and Involuntary Resettlement’ and PS6 ‘Biodiversity Conservation' are not applicable. It is considered unlikely that PS5 or PS6 will be applicable for the jetty (due to being situated within the port), but this will be confirmed on completion of the jetty ESIA. PS7 and PS8 are not applicable as Indigenous people and Cultural Heritage have not been identified. Compliance to applicable general and sector specific World Bank Environmental Health and Safety Guidelines is required.

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Date	Total FMO financing
6/12/2018	USD 40.00 MLN
5/6/2024	USD 18.85 MLN
5/7/2024	USD 30.00 MLN