Karachi, Pakistan January 3, 2006
—The International Finance Corporation, the private sector arm of the World Bank Group, has provided $15.0 million in loans to Pakistan International Container Terminal Limited (PICT), to support the company’s expansion program. This is a further investment by IFC in PICT; having previously provided $9.25 million in 2003 to finance the first phase of the company’s investment program.
PICT holds a 21 year concession to build and operate a container terminal at the port of Karachi, Pakistan, and is also the first publicly listed and traded port infrastructure company in the country. The company’s investment program is expected to be completed by December 2006. In 2005, the volume handled by the terminal was more 280,000 TEUs, a 215% increase over 2004.
The current investment program includes the acquisition of additional container handling equipment and the expansion of the stacking yard, and is expected to further expand the terminal’s operations and enhance its efficiency. Captain Haleem Siddiqui, Chairman of PICT, commented: “after the expansion, PICT will become a more efficient terminal, capable of handling larger volumes and delivering better service to its clients. We are pleased to continue working with IFC, which has become a key partner in our growth strategy.”
“IFC is delighted to continue its long-standing partnership with PICT. The company’s expansion will contribute to the improved competitiveness of the Karachi port and support Pakistan’s continued economic growth and development”, said Francisco Tourreilles, Director of IFC’s Infrastructure Department.
Michael Essex, IFC’s acting Director Middle East and North Africa, noted: “IFC’s financing supports Pakistan’s efforts to encourage private sector participation in infrastructure projects. IFC’s investment will have a strong demonstration effect by encouraging the international market to extend financing to well manage Pakistani companies such as PICT.”
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in emerging markets, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in transition and developing countries, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $ 24 billion in syndicatins for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates activities with other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
