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Projects

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
Rwanda Stones & Construction Ltd.
Project ID
11170
Fiscal year
2013
Status
Proposed
Guarantee holder
Ranjeet Kumar Bhansali
Investor country
India
Host country
Rwanda
Environmental category
B
Sector
Manufacturing
Date SPG disclosed
September 17, 2012
Projected Board date
October 09, 2012
Gross exposure
 $5.9 million
Project type
SIP
Strategic priority area
IDA
South-South
EIA
Enviromental Impact Assessment Report for A Stone Crushing Factory

This summary covers an investment by a group of investors from India represented by Ranjeet Kumar Bhansali in Rwanda Stones & Construction Ltd. (RSCL).  The investor has applied for a MIGA guarantee of $5.9 million for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The proposed project entails the establishment of a greenfield company, RSCL, located 17km from Kigali city center. The company will establish a quarry and stone crushing plant on a 2.4 hectare parcel of land in order to quarry, produce, sell, and distribute various grades of stone aggregates and concrete products such as cement bricks, hollow bricks, parking tiles, and pavers to public and private sector customers in Rwanda

Environmental Categorization

The project is a category B under MIGA’s Policy on Social and Environmental Sustainability as it has potentially limited adverse social or environmental impacts. Key potential impacts include community and workers’ health and safety and air, soil, and water pollution. The potential impacts are largely reversible and readily addressed through mitigation measures. The company has provided MIGA with a social and environmental impact assessment in line with MIGA’s Performance Standards that can be located here.

Development Impact

The proposed project is expected to employ approximately 60 people from the surrounding communities and pay them at an above-average rate. In addition, the proposed project will address an unmet need: the Rwandan retail market for stone aggregates and concrete products is currently underserved, as the large commercial stone crushers are building and road contractors producing for their internal use. Smaller contractors are often must purchase hand-crushed stone aggregates, which are limited in supply and inconsistent in quality.

The proposed project is aligned with the World Bank Group’s Country Assistance Strategy for Rwanda, which stresses the critical importance of a more developed private sector that would lead economic growth in the country.

It is also aligned with MIGA’s strategic priorities of supporting South-South investments and investments into countries eligible for concessional lending from the International Development Association.

 
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