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IFC makes $19m equity investment in PIBT
|Friday, June 08, 2012|
KARACHI: The Pakistan International Bulk Terminal Limited (PIBT) and the International Finance Corporation (IFC), a member of the World Bank Group, has signed an agreement under which IFC will make an equity investment of $19 million in PIBT. The IFC will also provide $26.5 million loan to PIBT for the construction of non-food dry bulk cargo terminal at Port Qasim. Dimitris Tsitsiragos, IFC Vice President for Europe, Middle East and North Africa, said that Pakistan is a priority country for IFC. On an average IFC is investing $500 million to $600 million in trade & finance, infrastructure, renewal energy, agriculture sector with private sector. For the past three years, IFC’s investments and advisory services work have increased in Pakistan to promote private sector growth, he said, adding Pakistan has strong potential for growth but lack of adequate investment in infrastructure is hampering the economic development. He said the PIBT project will facilitate growth in international trade for Pakistan, supporting the country’s economic development, adding that it the first time that IFC has invested as equity investment in the port business. Presently, the country’s economic expansion remains constrained by severe power shortages, weak transportation and logistics infrastructure, and limited access to finance for large segments of the population. IFC’s strategy in Pakistan focuses on addressing these constraints by mobilizing investments in power and infrastructure, and providing access to finance to micro, small and medium enterprises (MSMEs) through financial intermediaries. As of June 2011, IFC has committed almost $3.5 billion of its own funds in the country and has arranged about $610 million in syndications. During fiscal year 2011, IFC committed over $696 million, including $554 million in trade finance assistance to 11 banks. Aasim Siddiqui, Managing Director Marine Group of Companies, highlighted the importance of contribution made by the IFC in the ports of Pakistan and specifically to the Marine Group of Companies. He added that PIBT would be constructed as a state-of-the-art dirty bulk cargo handling facility at an estimated cost of approximately $185 million at Port Qasim on a 30-year built operate and transfer basis. PIBT has developed an Environment Management Plan (EMP) in compliance with applicable laws and regulations of Pakistan, IFC’s performance standards and World Bank Group Environmental Health and Safety Guidelines. The project is expected to come into operations by the start of 2015. PIBT would be capable of handling up to 12 million tons per annum of Coal, Cement and Clinker. The jetty shall have a depth of 15 meters with the capability of handling large ships of up to 75,000 DWT. Present at the signing ceremony were Chairman PQA Vice Admiral (R) Muhammad Shafi, Chairman KPT Aslam Hayat, Ali Siddiqui Director JS Group.