ifc and the natural gas sector
TRANSCRIPT
TABLE OF CONTENTS
2
Introduction to IFC within the World Bank Group (Slides 2- 5)
How IFC Creates Opportunity (Slides 6 - 10)
Key Downstream Development Opportunities (Slides 12 - 14)
IFC Sector Experience (Slides 15 – 18)
IFC: A MEMBER OF THE WORLD BANK GROUP
3
Conciliation
and arbitration
of investment
disputes
Guarantees
of foreign
direct
investment’s
non-
commercial
risks
Interest-free
loans and
grants to
governments
of poorest
countries
Loans to
middle-
income and
credit-worthy
low-income
country
governments
Solutions
in
private
sector
development
IBRD
International
Bank for
Reconstruction
and
Development
IDA
International
Development
Association
IFC
International
Finance
Corporation
MIGA
Multilateral
Investment
and
Guarantee
Agency
ICSID
International
Centre for
Settlement of
Investment
Disputes
PROVIDING DEVELOPMENT SOLUTIONS … Customized To Meet Client Needs
▪ A member of the World Bank
Group
▪ Provides investment, advice,
resource mobilization
▪ AAA credit rating; nearly 60-year
history in emerging markets
▪ Present in 100 countries
4
IFC is the largest global development institution focused exclusively
on the private sector in developing countries.
IFC IN SUB-SAHARAN AFRICA ( 3 Hubs, 21 Country Offices)
5
IFC Hub Offices
IFC Country Offices
ATLANTIC
OCEAN
Mediterranean
Sea
INDIAN
OCEAN
Johannesburg Maputo
Antananarivo
Lusaka
Freetown
Nairobi Kigali
Douala
N’Djamena
Lagos Accra
Ouagadougou
Abidjan
Dakar
Cairo Amman
Jerusalem Beirut
Algiers
Rabat
Sana’a
Dubai
Monrovia
Kinshasa
Addis Ababa
Dar es-Salaam
Bujumbura
Bamako
Bangui Juba
Tunis
Abuja Conakry
HOW IFC HELPS END EXTREME POVERTY
AND BOOST SHARED PROSPERITY
6
Frontier markets
Climate change
and environmental
& social sustainability
Local financial
markets
Long-term
client relationships
in emerging markets
Strategic
Focus
Areas
Constraints to private sector growth in infrastructure,
health, education, and the food supply chain
7
$17.7 billion in long-term investment:
• $10.6 billion for IFC’s own account,
• $7.1 billion mobilized
$50.4 billion committed portfolio
$4.7 billion invested in IDA Countries
Long-Term Investments: 406 new
projects in 83 countries
Advice: 65% of program in IDA
countries, 20% in fragile and conflict-
affected areas
FISCAL YEAR 2015
HIGHLIGHTS
PHILIPPINES
WHAT CLIENTS VALUE ABOUT IFC
RESULTS OF IFC Client Survey
8
Long-Term
Partner Role
Stamp of
Approval
Financing
Not Readily
Available
Elsewhere
Worldwide
Presence
Global
Expertise and
Knowledge
Affiliation
with the
World Bank
Group
Ability to
Mobilize
Additional
Funds
Pricing
WHAT WE DO
Integrated Solutions, Increased Impact
9
INVESTMENT
(Loans, Equity, Trade Finance, Syndications,
Derivative and Structured Finance, Blended Finance)
ADVICE
(Integrated with IFC Investment)
IFC ASSET MANAGEMENT COMPANY
(Mobilizing and Managing Capital for Investment)
3 Focus
Industries:
3 Product
Areas:
MANUFACTURING
AGRIBUSINESS & SERVICES FINANCIAL INSTITUTIONS
INFRASTRUCTURE AND
NATURAL RESOURCES
10
Exploration & Development:
Award Of Contracts & Licenses
Regulation & Monitoring Of
Operations
Collection Of Taxes &
Royalties
Revenue Management & Allocation
Implementation Of Sustainable
Development Policies & Projects
Macro/Fiscal, Governance, Trade, Enviro, & Transport GPGs
Cross-Cutting: Gender, Jobs, Climate, Conflict, PPPs
IBRD/IDA
IFC
MIGA
Energy & Extractives GPGs
Investment Services
Political Risk Insurance
World Bank Group Strategic Approach: Extractive Industries
Each link in the chain needs to be strong in order to deliver transformative development impact.
As WBG, we combine strengths to work across the value chain to achieve this.
E&S Services
Advisory Services
WBG Involvement Across Entire Extractive Industries Value Chain
11
Exploration
Appraisal & Development
In-country & International
Gas Pipelines
Oilfield Services
Liquefied Natural Gas
Compressed Natural Gas
Liquefied Petroleum Gas
IFC is active throughout the entire oil and gas value chain
Floating Production, Storage, Offloading
Liquefaction & Regasification
Gas Distribution
Petrochemicals & Refineries
Fertilizers
Gas-to-Power
Gas & Mixed Fuel Generation
Greenfield Oil & Gas Projects to Corporate Expansions
CASE STUDY – Peru LNG
12
Investment thesis
• Peru LNG approached IFC looking for a financial
partner with the experience to provide advice on the
environmental and social management of their $4
billion liquefied natural gas project that includes a
liquefaction plant and a 408-kilometer pipeline that
connects to an existing pipeline network east of the
Andes.
IFC’s Added Value
•Local supplier development program
• Regional program to help municipalities better
manage increased revenues
• Land acquisition and compensation
• Training community members to monitor the
company’s E&S performance
Results • Local Supplier Development - Trained 116 small
businesses including areas such as quality, negotiations,
marketing, and HSE. 167 new permanent jobs have been
created and 31 women owned firms have received SME
business management training.
• Municipal Royalty Management - Working with three
Peruvian municipalities to manage, plan, and allocate
revenues.
• Community Participatory Monitoring Program - 82
community monitors trained to focus on social and
environmental project impacts.
Peru LNG
$300,000,000 Syndicated Project
Financing
Lender
Peru
June 2007
13
Select IFC Oil & Gas Investments in Africa
IFC Hub Offices
IFC Country Offices
Cape Town
Johannesburg Maputo
Antananarivo
Lusaka
Freetown
Nairobi
Kigali
Douala
N’Djamena
Lagos
Accra
Ouagadougou
Abidjan
Dakar
Cairo
Algiers
Rabat
Monrovia
Kinshasa
Addis Abala
Dar-es-Salaam
Bujumbura
Bamako
Bangui Juba
$40,000,000
Revolving Credit
Facility
Gabon
June 2005
VAALCO Energy
$165,000,000
Senior Loan
Ghana
2009, 2011
Tullow Oil
$100,000,000
Senior Loan
Ghana
2009, 2012
Kosmos Energy
$30,000,000
Mezzanine Loan &
Equity Investment
Tunisia
October 2008
TOPIC
Tunisia
$10,000,000
Equity Investment
January 2012
Candax Energy
$175,000,000
Reserve Based
Islamic Financing
Egypt
2009, 2011, 2012
Kuwait Energy
$200,000,000
Senior Loan and
Syndication
Chad-Cameroon
June 2001
Chad-Cameroon
Pipeline
$18,500,000
Equity Investment
Mozambique
December 2003
Southern Africa
Gas Pipeline
$1,000,000
Equity Investment
Nigeria
April 2005
Afren
$20,000,000
Equity Investment
Cote d’Ivoire
January 2012
Rialto Energy
IFC’s Track Record in LNG
14
IFC is a leading bank in financing small scale LNG, LNG trucking and LNG filling stations
▪ FY04, IFC finance the first LNG trucking project in Dominican Republic.
▪ FY04, IFC provided $40 million A Loan and $10 million equity to Xinao Gas, China to build city gas
distribution network.
▪ FY08, IFC provided $200 million loan to Petronet LNG expansion in India
▪ FY08, IFC provided $300 million A Loan to help finance Peru LNG (4.5 mtpa)
▪ In FY13 IFC provided $150 million to ENN Energy to develop 500 LNG filling stations in China to
encourage fuel switching from diesel to gas.
▪ In FY15, IFC invested $150 million equity (with AMC) in Tian Lun Gas for building small LNG
liquefaction plants, city gas distribution network, and LNG/CNG stations;
▪ In FY15, IFC provided $300 million loan to China Gas to expand the company’s city gas distribution
network.