Propileno de Falcon CA Summary Of Project Information (SPI)       Project Name:    Venezuela: Profalca      Region:Latin America and Carribean   Sector:   Project No:009426   Projected Board Date:April 30, 1999   Company Name:Propileno de Falcon C.A.   Technical Partner and/or Major Shareholders    	Shareholder are Koch Petroleum, a wholly owned subsidiary of Koch Industries Inc (USA), Productos Especiales PROESCA CA, an affiliate of Petroleos de Venezuela S.A. (PDVSA, Venezuela), Inversiones Polar S.A. (Venezuela) and Inepropril, a subisidiary of Inelectra (Venezuela).    Project Cost Including proposed IFC investment    	The estimated  project cost is US$102 million.  IFC is considering a loan of up to US$58 million for its own account and the account of participating banks.    Location of project and Description of site    	The project is located adjacent to the Paraguana Refining Center (Cardon) in the State of Falcon, Venezuela, owned and operated by PDVSA.    Description of Company and Purpose of Project    	The facility is a propane/propylene splitter which will produce an average of 130,000 mt/yr of polymer grade propylene, a chemical feedstock used primarily for the production of polypropylene.  The Company is expected to sell most of its output to export markets.  The main local sponsor, PROESCA, is responsible within the PDVSA group for projects to transform intermediate refinery streams, traditionally used as fuels, into products with higher added value.  The project is part of this program to promote local and foreign investment in order to achieve more complete downstream industrialization and contribute to economic development of the country.  Support from IFC demonstrates continuing commitment to promote private sector development and foreign direct investment in Venezuela.     Environmental Category and Issues    	This is a category B project according to IFCs environmental review procedure. Main potential issues related to the project include: site selection, and site selection procedures; air emissions; liquid effluent handling, treatment and discharge; solid and hazardous waste handling and disposal ; contingency and emergency planning and response; and general health and safety issues. The project site occupies approximately 6 hectares and is located within the Paraquana Refining Complex.  The project will not involve human resettlements and will not impact sensitive habitats. PDVSA will supply services including electricity; steam; docking facilities; emergency fire fighting service; and supply of raw, process, and fire fighting water.  The process will not generate air emissions or process liquid effluent. Oily waters resulting from either equipment maintenance or malfunctions will be treated onsite. The catalysts generated will be collected, properly stored and sent back to the suppliers for recycling purposes.  Domestic residues will be collected and properly disposed at a landfill authorized by the local authorities. Profalcas fire prevention measures will follow the strict refinery requirements for construction, design and operation.   Profalca will implement occupational health and industrial safety training programs and will establish procedures including proper handling of chemicals substances, hearing, respiratory protection, and basic sanitation, in accordance with international standards.  Profalca will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. Based on the review of the available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Venezuela requirements, and World Bank policies, and environmental, health and safety guidelines.    The  is  from the InfoShop.       Date SPI sent to InfoShop:    March 24, 1999      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).