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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
Nafith Logistics - Iraq Branch
Project ID
9170
Fiscal year
2014
Status
Active
Guarantee holder
Nafith International PSC
Investor country
United Kingdom
Host country
Iraq
Environmental category
B
Sector
Services
Date SPG disclosed
February 14, 2014
Project Board date
April 17, 2014
Gross exposure
 $8.3 million
Project type
Non-SIP
Strategic priority area
Conflict Affected
South-South

View Summary of Proposed Guarantee


Project description

On June 15, 2014, MIGA issued a guarantee of $8.3 million covering an equity investment and shareholder loan by Nafith International PSC of the British Virgin Islands in Nafith Logistics - Iraq Branch. MIGA’s coverage is for a period of 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves building and managing a truck-control system that regulates the entry and flow of trucks under a 10-year public-private partnership with General Company for Ports in Iraq (GCPI), a state-owned enterprise. In August 2011, Nafith Logistics Jordan (owned by Nafith International PSC) was awarded a 10-year concession contract to build and operate the system. The facility will be built in Iraq’s Basra governorate and will control all trucks entering and exiting Umm Qasr Port, two smaller ports (Khor Zubair and Abu Floos), and the Safwan border crossing with Kuwait. MIGA’s coverage will be for phase one of the project, which encompasses the Umm Qasr Port.

The project is expected to enhance port efficiency through reduced congestion at the gates of the Umm Qasr port and its berths, increasing port throughput capacity. The project will also help streamline operations, which will reduce freight costs and significantly reduce wait times for truck drivers, allowing them to increase their incomes. Truck companies will also benefit from these efficiency gains. By 2015, the project is expected to generate more than 360 local permanent jobs.

The project is aligned with the World Bank Group’s 2013-2016 Country Partnership Strategy for Iraq, which focuses on unleashing the country’s growth potential in the non-oil sector, including through the development of infrastructure and the involvement of the private sector. The project is consistent with MIGA’s strategic focus on supporting fragile and conflict-affected countries and mobilizing insurance capacity to support foreign direct investment into the Middle East and North Africa during this time of transition in the region.

The project was underwritten through MIGA’s Small Investment Program.

 

 
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