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Summaries of proposed guarantees are provided prior to Board consideration and final contract signing, and therefore are subject to change. Project briefs are disclosed after contract signing and do not reflect subsequent modifications (e.g., changes in guarantee amount).
Project Name Congo Oils and Derivatives SARL
Guarantee Holder Freiha Feed Company
Yousef Freiha and Sons
African Company for Oil Derivatives
Ralph Freiha
Investor Country Virgin Islands (British)
Lebanon
Host Country Congo, Democratic Republic of
Sector Agribusiness
Gross Exposure ($million) 10
Fiscal Year 2009
Status Proposed
Project Number 7314
Environmental Category B
Date SPG Disclosed November 12, 2008
Project Board Date November 27, 2008
 

This summary covers an investment by the African Company for Oil Derivatives of the British Virgin Islands, Freiha Feed Company, Ralph Freiha, and Youssef Freiha and Sons of Lebanon in Congo Oils and Derivatives SARL. The sponsors have applied for MIGA guarantees covering their $4.8 million equity investment in, as well as $4.8 million shareholder loan to the project. The guarantees will have a term of up to 10 years, providing coverage against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves the installation and operation of a vegetable oil refinery in Boma, a port town in the Democratic Republic of Congo. The plant will produce refined, bleached and deodorized palm oil, as well as degummed soya bean oil plant. It will have a capacity of 140 tons of oil per day. 

The project will mostly serve a local market partially dependent on imports, which is expected to grow as the economy stabilizes and develops. There is also a possibility of exporting to neighboring countries, in particular to Angola, a post-conflict economy with limited industrial capacity. 

Environmental Categorization

The project is a Category B under MIGA’s environmental review procedures.

Development Impact

The project is expected to have a positive impact on the country’s economy by creating jobs for the local population, generating significant annual tax revenues (after year four) for the government, and local procurement of goods and services, mostly related to transportation, fuel, and utilities, as well as lodging and boarding for expatriate personnel.

This is a South-South investment in an IDA-eligible country. MIGA’s participation in the project would, therefore, be aligned with the agency’s commitment to supporting investment into the world’s poorest nations, investment in sub-Saharan Africa, investment in conflict-affected countries, and South-South investments. If MIGA proceeds with the project, it will be underwritten through the agency’s Small Investment Program.

Contact

For more information, please contact migainquiry@worldbank.org

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