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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
Afrigas (SL) Limited
Project ID
8085
Fiscal year
2011
Status
Not Active
Guarantee holder
Geogas Trading SA
Investor country
Switzerland
Host country
Sierra Leone
Environmental category
B
Sector
Services
Date SPG disclosed
June 15, 2009
Project Board date
August 10, 2010
Gross exposure
 $3.6 million
Project type
SIP

View Summary of Proposed Guarantee


On September 17, 2010, MIGA issued guarantees totaling $3.6 million to Geogas Trading SA of Switzerland covering its investment in a liquefied petroleum gas (LPG) storage and distribution project in Sierra Leone. The coverage is for a period five years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The aim of the project is to introduce permanent LPG bulk storage facilities to supply the local market with LPG. The LPG would be used primarily for cooking, but could also be used for industrial practices such as welding and cooling. In addition to constructing the storage facilities, the project will establish four filling stations for five-kilogram LPG gas bottles.

The project will establish the first permanent LPG storage facility in Sierra Leone and is expected to result in a price reduction of 60 percent for LPG. LPG offers several advantages over traditional biomass fuels, such as wood and charcoal, including the reduction of deforestation and fewer respiratory illnesses resulting from indoor pollution. It can also improve productivity, particularly for women, by reducing the amount of time spent gathering firewood. LPG can also be used in microenterprises such as food preparation and processing and metal works.

MIGA’s support for this investment is aligned with the World Bank Group’s country partnership strategy for Sierra Leone, particularly with regard to supporting the development of a competitive private sector.

MIGA’s participation in the project is also aligned with key agency priorities, which include encouraging investment in post-conflict and IDA-eligible countries. The guarantees were underwritten through MIGA’s Small Investment Program.

 
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