This summary covers an investment by Coprotec Systeme GmbH (Coprotec) of Germany in Bosnia Herzegovina. The investor has applied for a MIGA guarantee of $1.2 million for a period of up to three years against the risks of transfer restriction, expropriation, and war and civil disturbance.
Coprotec’s investment will be comprised of equity and shareholder loan contributions to its wholly owned subsidiary, Coprotec Sistemi d.o.o. Orasje, for the establishment of a Greenfield manufacturing facility in the Posavina Canton area of northern Bosnia Herzegovina.
The factory will manufacture sophisticated parts and components for export to the automobile industry (parts and vehicle manufacturers) in Germany.
Environmental Risk and Categorization
The project is a Category B under MIGA’s environmental review procedures, because the potential adverse environmental impacts are limited in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. The new facility in Orasje is located in an industrial zone on a green field site owned by the Municipality of Orasje. The sponsor is currently pursuing occupational health and safety certification under OHSAS 18001 (1999), expects to incorporate this in the Orasje operation, and warrants that work safety issues are thoroughly addressed. The only waste from the operation consists of fine particles of machining scrap, which will be controlled to prevent becoming dust/irritants, and subsequently recycled as quality steel. The sponsor plans to seek ISO 14001 certification for environmental management. The employment contract commits the sponsor to compliance with national labor legislation.
MIGA’s support for this investment is aligned with the World Bank Group’s Country Partnership Strategy for Bosnia and Herzegovina, particularly with regard to supporting the development of a competitive private sector.
This project involves the establishment of a greenfield, export-oriented facility for the production of sophisticated parts and components for the automobile industry in Germany. Moreover, it involves the transfer of high- technology precision equipment and quality control processes to the project company.
MIGA’s participation in the project is aligned with key agency priorities, which include encouraging investment in post-conflict and IDA-eligible countries. The project will be underwritten through MIGA’s Small Investment Program.