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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
Beit Jala Pharmaceutical Company
Project ID
Fiscal year
Guarantee holder
United Pharmaceutical Manufacturing Company
Mr. Nidal Sukhtian
Investor country
West Bank and Gaza
Host country
West Bank and Gaza
Environmental category
Date SPG disclosed
October 31, 2013
Project Board date
December 05, 2013
Gross exposure
 $1.5 million
Project type
Strategic priority area
Conflict Affected

Project description

This summary covers investments by United Pharmaceutical Manufacturing Company of Jordan and Mr. Nidal Sukhtian of West Bank and Gaza in Beit Jala Pharmaceutical Company in the West Bank. The investors have applied for guarantees of €1.1 million ($1.5 million equivalent) under the MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund for a period of up to three years against the risks of expropriation and war and civil disturbance.

The project involves the expansion of an existing company, Beit Jala Pharmaceutical Company (BJP) in the West Bank by United Pharmaceutical Manufacturing Company of Jordan and Mr. Sukhtian, a Palestinian investor and shareholder of BJP. The expansion will allow the company to manufacture sterile ampoules and eye drops in accordance with European Union standards. The company will supply the local market and export to Jordan, Gulf Cooperation Council countries, and some Eastern European markets. The project’s main clients will be the Ministries of Health and non-governmental organizations in both the Palestinian Territories 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.

Environmental Categorization

The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. Potential environmental and social impacts are limited, generally site specific, and readily addressed through mitigation measures. Key potential impacts include community and workers’ health and safety, and waste management. Details on how BJP is planning to address key impacts are presented in the attached report.

Development Impact

The project is expected to have a positive impact on the local economy by expanding the pharmaceutical sector, while incorporating the technical know-how and investment needed to develop the production of sterilized products. There are currently no companies in Palestine that can produce processed sterilized drugs products in accordance with international standards due to the lack of technological knowledge, the lack of required quality standards, and high investment costs. Furthermore, the project will contribute to the generation of approximately 26 local jobs. BJP will provide employees with training on health and quality international standards as well as technical skills for the production process. 

The proposed project is consistent with the main goals of the National Development Plan of the Palestinian Authority and the World Bank’s Interim Strategy for the West Bank and Gaza, which emphasize private sector development and the creation of jobs. It is also aligned with MIGA’s objectives of supporting South-South investments, investments in conflict-affected environments, and investments in entities eligible for assistance from the International Development Association.

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

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