Lima, Peru, January, 29, 2009—IFC,
a member of the World Bank Group, has agreed to help Peru LNG create jobs
and raise incomes for communities that live alongside a $3.8 billion natural-gas
export project that is supporting economic growth in some of Peru’s poorest
IFC has signed a cooperation agreement
with Peru LNG, an international consortium that is developing the project.
The project consists of a liquefied natural gas plant and a marine loading
terminal 170 kilometers south of Lima on Peru's central coast, as well
as a new 408-kilometer pipeline that will connect to an existing pipeline
network east of the Andes.
Under the agreement, IFC and Peru LNG
will run three community development initiatives. One is aimed at increasing
income and employment for communities neighboring the LNG plant. It will
help small and medium enterprises in Chincha (Department of Ica) and Cañete
(Department of Lima) provide services such as food, transportation, uniforms,
and maintenance to the project and other local businesses.
“IFC has been very helpful in supporting
our goal of making the Peru LNG project a win-win situation for all,”
said Steve Suellentrop, President of Peru LNG. “They assisted us in identifying
most effective ways of working with local communities so that people living
near the project can use opportunities such as employment and contracting
IFC also will provide expert advice
on international best practice for Peru LNG’s “Community Participatory
Monitoring Program,” which will give communities in the project’s area
of influence an opportunity to evaluate the consortium’s environmental
and social performance.
In addition, IFC will help Peru LNG
support the local governments of Huamanga and La Mar in Ayacucho and Huaytará
in Huancavelica by helping them manage, plan, and allocate revenues, leading
to a more efficient investment of royalties.
“Combining community programs with
financial support for projects is a trademark of IFC,” said Somit Varma,
IFC’s director and global head for oil, gas, mining, and chemicals. “Oil
and gas projects can lead to sustainable development, particularly if we
ensure that local people benefit, and that is what we are doing here with
our partner Peru LNG.”
The Peru LNG project will be the largest
direct foreign direct investment in the country’s history. Last year IFC,
alongside other multilateral banks and commercial banks, signed a $300
million loan in support of the project’s benefits for Peru.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous
year. For more information, visit www.ifc.org.