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
- Secil – Companhia de Cimentos do Lobito SA
- Project ID
- Fiscal year
- Guarantee holder
Secil-Companhia Geral De Cal e Cimento, S.A.
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- April 22, 2010
- Projected Board date
- June 17, 2010
- Gross exposure
- $168.0 million
- Project type
- ESRS for Companhia de Cimentos do Lobito SA
This summary covers guarantees for Secil – Companhia Geral de Cal e Cimento SA’s (Secil) of Portugal investments in the construction and operation of a new cement plant in Angola. Secil’s investments include an equity investment in the amount of $64.5 million and loan guarantees in the amount of $88.5 million. Secil has applied for MIGA guarantees of up to $168 million for a period of up to 15 years against the risks of expropriation, currency inconvertibility and transfer restriction, war and civil disturbance, and breach of contract.
The project involves the greenfield construction and operation of a cement plant with a total capacity of 495,000 tons per annum (tpa) of clinker and 650,000 tpa of cement using dry process technology. The plant will be located in Lobito, a small coastal town approximately 400 kilometers south of Luanda, in the Benguela province of Angola.
The project is a Category B under MIGA’s environmental review procedures. Click here to view the Environmental and Social Review Summary.
High quality cement products for the local community will help sustain the local construction industry, develop commercial enterprise, increase housing availability and speed the reconstruction and rejuvenation process of the region. This will allow Lobito to take greater advantage of its location as a potential commercial hub in the southern region of Angola.
The project will create new employment, both directly and indirectly, through the addition of 130 new employees to its workforce and the creation of new indirect employment opportunities (mainly in transportation and other worker related industries). The direct employment opportunities will create a specialized workforce with marketable and transferable skills.
MIGA’s participation in the project is aligned with key agency priorities, which include encouraging investment in sub-Saharan Africa, post-conflict, and IDA-eligible (the world’s poorest) countries.