The International Finance Corporation (IFC), the private-sector investment arm of the World Bank entangled in alleged insider dealings with Dubai based Milio International firm and its Kenyan subsidiary, Mombasa Gas Terminal (MGT) over the latter’s stalled sh2.5billion greenfield liquefied petroleum gas (LPG) terminal in the Port of Mombasa, Kenya,
At the center of claimed external influences controlling the global lender’s decisions on financing preferences is John Hart, the owner of Milio International and majority shareholder of MGT.
In June last year, World Bank through (IFC) has approved a $23 (2.5 billion) funding for the project by Mombasa Gas Terminal, a now stalled project.
“From the word go, there was no intention to see the project to fruition. The external influences on the decision to finance and readily availed budget runs deep akin to international economic hit men script. MGT project in Mombasa has since stalled.” Our source revealed.
Interestingly, three years prior to the commencement of the project, IFC had proposed to lend to the company.
As per a previous disclosure, IFC was looking to bring as much as $48 million as debt capital for the company, which had put a project cost of $112 million. It is not clear if IFC indeed went ahead with the transaction.
Milio has been the main supplier of fuels to the NATO coalition forces in Afghanistan and participated in the development of oil terminals in the Caspian Sea and Black Sea.
MGT’s project site is located at Mbaraki Creek within the Port of Mombasa, on a peninsula between the African Marine Dry Dock and the Mombasa Yacht Club.
The land for the import facility is on the site of African Marine and General Engineering Company Ltd.
The financing was meant to go towards the construction of the first phase of an LPG import and storage terminal.
In its disclosure, IFC says the $23 million project will be financed by an initial loan of $5 million (Sh53.9 million) and $10 million (Sh107.8 million) in additional debt arranged by IFC.
The balance of $8 million (Sh862.7million) is equity contribution from the sponsor with IFC.
MGT is led by its majority shareholder John Hart, who prides himself as having experience in trading fuel and building and managing oil terminals in Eastern Europe and Central Asia.
MGT is part of Milio International.
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