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Projects

Project Brief

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
Bio ZMZM for Plastic Industries
Project ID
11083
Fiscal year
2014
Status
Active
Guarantee holder
Adrianus Jacobus Tukker
ZMZM for plastic industries of the West Bank
Investor country
Netherlands
West Bank and Gaza
Host country
West Bank and Gaza
Environmental category
B
Sector
Manufacturing
Date SPG disclosed
March 13, 2013
Project Board date
April 23, 2013
Gross exposure
 $1.8 million
Project type
SIP
Strategic priority area
IDA
Conflict Affected
South-South
EIA
ZmZm Environmental Impact Assessmemt

View Summary of Proposed Guarantee


Project Description

On September 5, 2013, the MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund issued guarantees totaling $1.8 million to Adrianus Jacobus Tukker of the Netherlands and ZMZM for plastic industries of the West Bank covering their equity investments in Bio ZMZM for Plastic Industries in the West Bank. The coverage is 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 Bio ZMZM for Plastic Industries (Bio ZMZM), a joint venture in the West Bank currently owned by Adrianus Jacobus Tukker who is representing Dutch Printing Innovations BV of the Netherlands (30 percent) and ZMZM for plastic industries (ZMZM) of the West Bank (70 percent). The joint venture plans to create a production facility for biodegradable plastics that expands upon ZMZM’s current plastics business. A new production facility to produce biodegradable plastics, including a factory, warehouse, and office, will be established on the premises of ZMZM in Hebron, near its current factory. The production facility will use blown extrusion technology, using a combination of virgin plastic resin/granule, recycled material, and additives. Production will initially focus on agricultural plastic sheets and drawstring garbage bags intended for the local market as well as export to Israel, Turkey, and Jordan. 

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.

The expansion is expected to create more than 40 new jobs during the first two years. A training program will substantially increase the knowledge level of employees and improve their competitiveness and employability. Technological knowledge on biodegradable plastics will also be shared with local companies and institutes, including Hebron University.

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 was underwritten through MIGA’s Small Investment Program.

 
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