Its in the part where the city docks are. In the south-eastern part of this map, there is a boat-tavern. It has 3-4 levels, check them all and youŽll find him.
SPOILER
also you should kill the two girls in the second level, on of them has a very good item
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"Let my spells do the dirty work" Ertai, High Sorceror of the Holy Flame