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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
Cotecna Inspection, S.A., Burundi Liaison Office
Project ID
11756
Fiscal year
2014
Status
Active
Guarantee holder
Cotecna Inspection S.A.
Investor country
Switzerland
Host country
Burundi
Environmental category
B
Sector
Services
Date SPG disclosed
April 28, 2014
Project Board date
May 30, 2014
Gross exposure
 $8.6 million
Project type
Non-SIP
Strategic priority area
Conflict Affected
IDA
ESRS
Orignial version in PDF, disclosed on April 28, 2014

This summary covers an investment by Cotecna Inspection S.A. (COINS) of Switzerland in Cotecna Inspection, S.A., Burundi Liaison Office. The investor has applied for a MIGA guarantee of $8.6 million for a period of up to nine years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.

COINS will provide services to the government of Burundi on a build-own-operate-transfer basis in return for a monthly operating and management service fee. The project consists of the financing, procurement, installation, and operation of non-intrusive import inspection equipment and an electronic transit monitoring system, including two high-energy mobile X-ray scanners at three customs offices (Bujumbura, Kobero, and Kanyaru); maintenance and technical assistance to the operation; training to the government of Burundi; and transfer of the scanners to the government at the end of the seven-year contract.

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 proposed project is expected to contribute to trade facilitation through more efficient verification of imported goods. The audit trail provided by scanned data is also expected to protect government revenues through the elimination of opportunities for fraud and fiscal evasion. Moreover, the project will help strengthen border security by ensuring that containerized goods are not illegal.

Other direct benefits include training, capacity-building for the future handover of operations to the government, and improved public resource management. The proposed project will create approximately 120 jobs.

The World Bank Group’s areas of focus in Burundi include increasing public resource management and governance as well as improving cross-border linkages. The proposed project supports these objectives.

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

 
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