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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
Congo International Company SPRL
Project ID
7305
Fiscal year
2008
Status
Not Active
Guarantee holder
AMCO Fabrics Private Limited
Investor country
India
Host country
Congo, Democratic Republic of
Environmental category
B
Sector
Manufacturing
Gross exposure
 $0.6 million
Project type
SIP

MIGA has issued a guarantee of $630,000 to AMCO Fabrics Private Limited, of India, covering its $700,000 equity investment in Congo International Company SPRL. The coverage is for up to 10 years and covers the risks of war and civil disturbance, transfer restriction, and expropriation. 

The project involves the installation and operation of a PVC pipe manufacturing plant on a greenfield site outside Lubumbashi in Katanga Province. The initial manufacturing capacity of the plant is estimated to be a few hundred tons a year. The plant will serve a market that is now entirely dependent on imports and is expected to grow as the local economy stabilizes. The sponsor will also be able to offer the pipes at lower prices than imported goods due to the country’s limited transportation infrastructure. 

The project is expected to employ about 25 local workers at wages and benefits that compare favorably to practices on the local market. It will also contribute to the economy through local sourcing of goods and services, mostly related to transportation, fuel, utilities, and housing costs. 

This guarantee was underwritten through MIGA’s Small Investment Program and is aligned with the agency’s commitment to supporting South-South investments, investment in sub-Saharan Africa, and investments in conflict-affected countries. MIGA’s participation in this project was crucial for the investor to secure the financing needed to proceed with the project.

 

 
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