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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
Al Jebrini Cheese Industry
Project ID
Fiscal year
Guarantee holder
Al-Jebrini Dairy and Food Industry Co.
Veldkamp Technische Ondersteuning B.V.
Investor country
West Bank and Gaza
Host country
West Bank and Gaza
Environmental category
Date SPG disclosed
August 08, 2012
Project Board date
September 10, 2012
Gross exposure
 $1.7 million
Project type
Strategic priority area
Conflict Affected

This summary covers an investment by Veldkamp Technische Ondersteuning B.V. of the Netherlands and Al-Jebrini Dairy and Food Industries of the West Bank and Gaza in Al Jebrini Cheese Industry in the West Bank. The investors have applied for guarantees of €1.35 million (approximately $1.7 million) under the MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves the establishment of a greenfield company, Al Jebrini Cheese Industry, in the West Bank by Veldkamp Technische Ondersteuning B.V. of the Netherlands and Al Jebrini Dairy and Food Industries, a local investor in the West Bank.  The company will produce and supply high-quality dairy products, including cheese and cream cheese.

This project is being supported by the PSI Plus program of the Netherlands Ministry of Foreign Affairs with a grant to cover up to 60 percent of the project cost and an additional amount to cover the MIGA political risk insurance premium for the first three years.

Environmental Categorization

The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. The sponsor has prepared an environmental impact assessment screening report for the expansion. Key environmental and social risks of the expansion are related to water use, wastewater, solid waste, food safety, and worker health and safety. These potential impacts are largely reversible and readily addressed through mitigation measures. Twenty-five percent of water use is recycled as cooling water. Process wastewater is discharged to the municipal sewer network. The sponsor is in the process of obtaining Hazard Analysis and Critical Control Points (HACCP) certification and is operating under permit by the Palestinian National Authority Ministry of Health. Solid wastes are segregated, with whey and production losses going to animal feed and household and packaging wastes collected by the municipality. Worker health and safety will be managed by the construction contractor in accordance with local regulations, with monthly inspections by local authorities.

Development Impact

The project is expected to have a positive impact on the local economy by expanding the dairy sector and creating approximately 50 local jobs. It will also bring technical know-how to the local food-processing industry. There are currently no companies in the West Bank that can produce processed cheese products due to lack of technological knowledge, lack of required quality and hygiene standards, and high investment costs. The project will produce healthy processed cheese products by using state-of-the-art technologies and ensuring high quality and hygiene standards, and sell these products on the domestic market at lower prices than imported processed cheese products.

This project is aligned with MIGA’s objective of facilitating investments in conflict-affected environments as well as entities eligible for assistance from the International Development Association.

The project would be underwritten through MIGA’s Small Investment Program.

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