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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
Mosel Scientific for Factories Rehabilitation and Operation and Marketing Ltd.
Project ID
11061
Fiscal year
2014
Status
Proposed
Guarantee holder
GMS Ventures and Investments
Investor country
Jordan
Host country
Iraq
Environmental category
B
Sector
Manufacturing
Date SPG disclosed
May 12, 2014
Projected Board date
July 08, 2014
Gross exposure
 $54.0 million
Project type
Non-SIP
Strategic priority area
Conflict Affected
ESRS
Original version in PDF, disclosed on May 12, 2014

Project Description

This summary covers an investment by GMS Ventures and Investments of Jordan in Mosel Scientific for Factories Rehabilitation and Operation and Marketing Ltd in Iraq. The investor has applied for a MIGA guarantee of $54 million for a period of up to 18 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves the rehabilitation, operation, and management of the State Company for Drugs and Medical Equipment – Nineveh (NDI) in Mosul, Iraq. GMS Ventures and Investments Holdings Ltd was awarded an 18-year contract by the Iraqi Ministry of Industry and Minerals following a competitive bidding process to rehabilitate the state-owned enterprise. NDI produces pharmaceutical products at three different manufacturing facilities, which were substantially impaired following the 2003 invasion of Iraq. The investment will increase capacity for pharmaceutical production through the introduction of new production lines for approximately 160 new products, as well as upgrade technical and logistical processes to improve efficiency.

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 principal benefit of this project will be the rehabilitation of the NDI pharmaceutical facility through upgrades, compliance with good manufacturing practices, and the application of modern business systems introduced by GMS Ventures and Investments. Producing high quality pharmaceuticals is important for Iraq’s market, which is currently flooded with low quality or counterfeit drugs.

MIGA’s proposed support for this project supports Iraq’s National Development Plan for 2010-2014, which aims to build a market-based economy in Iraq and diversify away from oil and into agriculture, industrial sectors (including pharmaceutical industries), and tourism. The project is also aligned with one of the pillars of the World Bank Group Country Partnership Strategy for Iraq, namely support for private sector-led economic diversification and employment generation.

 
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