CNG Glass (Nigeria) FZE
On December 21, 2017 and May 10, 2018, MIGA agreed to issue guarantees of up to $30,452,058 to China Development Bank (CDB) of China and of up to $41,360,000 to CNG (Nigeria) Investment Ltd. (CGIL) of Hong Kong, respectively, for their non-shareholder loans, shareholder loans and equity investments into CNG Glass (Nigeria) FZE in Nigeria.The guarantees are being issued for up to five years for the shareholder and non-shareholder loans, and for up to ten years for the equity investment against the risks of Expropriation, Transfer Restriction, and War and Civil Disturbance.
The project involves the design, construction and operation of a float glass manufacturing plant with a capacity of 500 tons per day (tpd) in Nigeria’s Ogun Guangdong Free Trade Zone, about 30-km from Lagos. This would be CGHL’s first construction material project in Africa.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click hereto view the Environmental and Social Review Summary.
The project is expected to have a positive impact on Nigeria’s economy by fostering job creation locally, diversifying the country’s growth in a non-oil sector and creating import substitution opportunities through the domestic production of currently imported float glass, as well as increasing the country’s potential foreign currency earnings through exports to neighboring countries.
MIGA’s proposed guarantees for this investment is consistent with the first pillar of the World Bank Group’s Country Partnership Strategy (CPS) for Nigeria (FY14-FY17), which entails federally-led structural reform agendas for growth and jobs. The project supports the first pillar of the CPS by creating jobs and contributing to the expansion of the country’s manufacturing sector.
This proposed project is also aligned with MIGA’s priorities of facilitating investments into countries eligible for financing from the International Development Association (IDA).