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
- Fiscal year
- Guarantee holder
Ranjeet Kumar Bhansali
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- September 17, 2012
- Projected Board date
- October 09, 2012
- Gross exposure
- $5.9 million
- Project type
- Strategic priority area
- 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
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.
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.