|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary was updated on February 16, 2011 and subsequently on May 19, 2011. The environmental and social information for the project was initially disclosed on February 16, 2011 and subsequently revised on May 19, 2011. This information was revised by Sojitz Corporation to remove confidential business information.
This summary covers an investment by Sojitz Corporation of Japan in Sojitz Maputo Cellulose Limitada (SOMACEL) in Mozambique. The investor has applied for MIGA guarantees totaling $9.1 million for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project consists of the development of a greenfield wood-chipping operation. The facility will be located on the territory of the Maputo port and the raw material will be sourced from eucalyptus plantations in the northeast region of South Africa and from the Northern region of Swaziland. SOMACEL plans to process and export wood chips. The output will be sold to a paper manufacturer in Japan.
This project is category B under MIGA's Sustainability Policy of October 2007. The key potential impacts for this operation are: solid and liquid waste disposal/discharge both at the processing site and at the port's woodchip loading area; particulate emissions; worker health and safety; community health and safety (during transport and storage of logs); forest resources management; and the use of security guards. These potential impacts are largely reversible and readily addressed through mitigation measures. Both the client and end user require that log suppliers are certified to ensure logs are only sourced from sustainably managed forests. Additional environmental and social information provided by the Sojitz Corporation is attached.
The project is expected to generate local jobs and annual tax revenues for the government of Mozambique. This project is aligned with the third pillar of Mozambique’s development strategy which includes job creation and integrating the country into the international economy.
The proposed project would be underwritten through MIGA’s Small Investment Program.