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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
National Beverage Company - Gaza Branch
Project ID
9804
Fiscal year
2014
Status
Proposed
Guarantee holder
Vegetable Oil Industries Company
Yusor Company for Investment
The Alzahra Company for Investment
Coca Cola Export Corporation
Investor country
West Bank and Gaza
France
Host country
West Bank and Gaza
Environmental category
B
Sector
Manufacturing
Date SPG disclosed
April 01, 2014
Projected Board date
August 12, 2014
Gross exposure
 $18.0 million
Project type
Non-SIP
Strategic priority area
IDA
Conflict Affected
South-South
ESRS
Original version in PDF, April 01, 2014

Project description

This summary covers equity investments by Vegetable Oil Industries Company, Yusor Company for Investment, Pan Gulf Company for Investment, and The Alzahra Company for Investment of the West Bank and Gaza as well as Coca Cola Midi S.A.S. of France in National Beverage Company (NBC) Gaza Branch. The investors have applied for guarantees of $18 million from MIGA’s West Bank and Gaza Investment Guarantee Trust Fund for a period of up to 10 years against the risks of expropriation and war and civil disturbance.

The project involves the expansion of NBC Gaza Branch’s operations, including the addition of a manufacturing facility for beverages dedicated to serving Gaza’s domestic market. Established in 1999, NBC Gaza Branch distributes and sells products directly to approximately 5,000 retailers across the Gaza Strip such as supermarkets, restaurants, and grocery stores. The facility is located in the Gaza Industrial Estate.

Environmental Categorization

The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.

Development Impact

The expansion is expected to create 121 new direct jobs and an estimated 1,000 indirect employment opportunities. The project will also contribute to the development of the private sector in Gaza through linkages and demonstration effects. It will also encourage the recycling of existing bottles. NBC uses state-of-the- art manufacturing technologies and provides significant training opportunities. The project is aligned with the World Bank’s Group’s Interim Strategy for West Bank and Gaza, which seeks to promote a better investment environment.

MIGA’s proposed support for this project is aligned with the Agency’s priorities of supporting South-South investments and investments into conflict-affected economies and economies eligible for concessional financing from the International Development Association.

 
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