Skip to navigation Skip to main content Skip to site map

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
Sasol Petroleum Temane Ltd. and Republic of Mozambique Pipeline Investment Company
Project ID
4154
Fiscal year
2004
Status
Not Active
Guarantee holder
Standard Bank of South Africa Ltd.
Investor country
South Africa
Host country
Mozambique
Environmental category
A
Sector
Oil and Gas
Gross exposure
 $113.4 million
Project type
Non-SIP

MIGA issued to Standard Bank of South Africa Limited guarantees of $87.8 million and $25.7 million for its respective loans of $92.4 million to the Republic of Mozambique Pipeline Investment Company (Pty.) Ltd. (ROMPCO) of South Africa and $27 million to Sasol Petroleum Temane Limitada (SPT) of Mozambique. Both SPT and ROMPCO are wholly-owned subsidiaries of the Sasol Limited Group. The guarantees are for a period of up to 13 years against the risks of transfer restriction, expropriation, war and civil dis-turbance, and breach of contract.

MIGA’s coverage of the loans replaces two equity guarantees issued in fiscal 2003 to the Sasol Limited Group in support of its initial investments in ROMPCO and SPT. A portion of the guarantees issued by MIGA has been reinsured under the Agency’s facultative rein-surance program.

MIGA’s guarantees support the development of Mozambique’s Temane and Pande gas fields and the construction of a 865 km cross-border gas pipeline in Mozambique and South Africa. The project represents the first cross border initiative in sub-Saharan Africa in developing regional natural gas markets and will generate many benefits for the local economy, including government revenues estimated to be in excess of $2 billion over the project’s 25-year lifetime. Contracts for local purchases of goods and services on an ongoing basis are estimated to be more than $1 million per year.

The project will substantially add to Mozambique’s infrastructure through the development of roads, water supplies and the removal of land mines. Environmentally, the project will contribute to the reduction of harmful emissions by replacing heavy oils and sulphur-rich coal with clean burning natural gas. (For more on this project, see 2004 Annual Report).

 
Apply for an Investment Guarantee
The World Bank Group logo