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
- Jordan Bromine Company Limited
- Project ID
- Fiscal year
- Guarantee holder
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- May 10, 2012
- Project Board date
- June 14, 2012
- Gross exposure
- $199.8 million
- Project type
- Environmental and Social Review Summary for Jordan Bromine Company Limited
On June 15, 2012, MIGA issued a guarantee of $199.8 million covering an equity investment by Albemarle Corporation of the United States in Jordan Bromine Company Limited (PFZ) (JBC). The coverage is for a period of 15 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves the expansion and operation of existing bromine and bromine derivatives manufacturing plants. The expansion will double the capacity of JBC’s bromine production and increase the capacity of bromine derivatives and the size of its bromine ISO tank fleet in order to meet growing global demand for bromine and bromine derivatives. These materials are typically used in chemical synthesis, oil and gas well drilling and completion fluids, mercury control, paper manufacturing, water purification, beef and poultry processing, and various other industrial applications.
The expansion of the facility is expected to generate an additional 150 jobs and further economic benefits through increased local sourcing. Employees are trained in Albemarle’s proprietary technology and technical know-how in the area of bromine extraction and processing.
JBC has also established the Caring for Jordan Foundation, which contributes to the well-being of Jordanians by helping them to improve their quality of life through support of sustainable community projects. Activities include the provision of computer labs in schools and support to a number of local community organizations.
The project is aligned with the World Bank Group’s Country Partnership Strategy for Jordan, which commits to strengthening the country’s foundation for sustainable growth with a focus on competitiveness. MIGA’s support is also aligned with the agency’s efforts to mobilize $1 billion in insurance capacity to support foreign direct investment into the Middle East and North Africa.