Beit Jala Pharmaceutical Company
On July 14, 2014, the MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund issued guarantees of €1.3 million ($1.7 million equivalent) covering investments by United Pharmaceutical Manufacturing Company of Jordan and Mr. Nidal Sukhtian of West Bank and Gaza in Beit Jala Pharmaceutical Company in the West Bank. The coverage is for a period of up to three years against the risks of expropriation and war and civil disturbance.
The project involves the expansion of an existing company, Beit Jala Pharmaceutical Company (BJP) in the West Bank by United Pharmaceutical Manufacturing Company of Jordan and Mr. Sukhtian, a Palestinian investor and shareholder of BJP. The expansion will allow the company to manufacture sterile ampoules and eye drops in accordance with European Union standards. The company will supply the local market and export to Jordan, Gulf Cooperation Council countries, and some Eastern European markets. The project’s main clients will be the Ministries of Health and non-governmental organizations in both the Palestinian Territories and Jordan.
This project is being supported by the PSI Plus program of the Netherlands Ministry of Foreign Affairs with a grant to cover up to 60 percent of the project cost and an additional amount to cover the MIGA political risk insurance premium for the first three years.
The project is expected to have a positive impact on the local economy by expanding the pharmaceutical sector, while incorporating the technical know-how and investment needed to develop the production of sterilized products. There are currently no companies in Palestine that can produce processed sterilized drugs products in accordance with international standards due to the lack of technological knowledge, the lack of required quality standards, and high investment costs. Furthermore, the project will contribute to the generation of approximately 26 local jobs. BJP will provide employees with training on health and quality international standards as well as technical skills for the production process.
The project is consistent with the main goals of the National Development Plan of the Palestinian Authority and the World Bank’s Interim Strategy for the West Bank and Gaza, which emphasize private sector development and the creation of jobs. It is also aligned with MIGA’s objective of supporting investments in fragile and conflict-affected environments.