Summary of proposed guarantee
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. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Motorcare Sierra Leone Limited
- Project ID
- Fiscal year
- Not Active
- Guarantee holder
Kjaer Group A/S
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- February 16, 2012
- Project Board date
- March 02, 2012
- Gross exposure
- $1.4 million
- Project type
This summary covers an investment by Kjaer Group A/S of Denmark in Motorcare Sierra Leone Limited (MSL). The investor has applied for a MIGA guarantee of $1.4 million for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
Kjaer Group’s equity investment and shareholder loan will support the expansion of MSL, which began operations in 2001. MSL’s business lines include new vehicle sales and after-sales services in Freetown and Makeni. The expansion will focus on improving sales and after-sales services in the existing branches as well as the establishment of new sales offices and workshops in Bo and Lungi
The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. A formal Health, Safety, and Environment (HSE) site assessment was conducted in August 2011. The key potential environmental and social risks and impacts are related to the storage, handling and disposal of hazardous substances, spill and emergency response and prevention, worker health and safety, and community health and safety. These potential impacts are largely reversible and readily addressed through mitigation measures. Click here for the HSE Site Assessment Report.
Kjaer Group has been operating in Sierra Leone since 2001 and has expanded its operations by reinvesting its earnings in the project. Through the provision of quality automobiles and services MSL has supported the country’s commercial development and ensured the availability of emergency vehicles supporting relief operations. When the planned expansion is completed, the project is expected to employ 100 permanent skilled local workers by end of 2015. As an authorized Ford dealer, MSL must comply with certification and training requirements set by Ford.
The project also contributes significant tax revenues to the government. In 2010, MSL was recognized as the best taxpayer of the year by the government of Sierra Leone. The award underlines the financial transparency and high social responsibility of the company. KG has been a member of UN Global Compact since 2003.
MIGA’s proposed support for this investment is aligned with the World Bank Group’s country partnership strategy for Sierra Leone, particularly with regard to supporting the development of a competitive private sector.
MIGA’s participation in the project is also aligned with key agency priorities, which include encouraging investment in post-conflict and IDA-eligible countries. The project would be underwritten through MIGA’s Small Investment Program.