Cotecna Inspection Limited Nigeria

MIGA has issued guarantees of $20 million and $10 million to Cotecna S.A. of Switzerland for its $12.5 million equity investment in, and US$8.0 million shareholder loan to, Cotecna Inspection Ltd Nigeria (CILN) of Nigeria. The coverage is for a period of ten years and against the risks of Expropriation, War and Civil Disturbance, Transfer Restriction, and Breach of Contract.

The project involves the establishment of container X-ray scanning centers in six ports, four airports and four land-border sites in Nigeria. The project is contracted under a build-operate-transfer (BOT) agreement with the Government of Nigeria and assets will be transferred after ten years. CILN will provide import verification services to ensure compliance with technical specifications and Nigerian laws. The X-ray scanning system will ensure that containerized goods landed in Nigeria are in compliance with importers' declarations. It is also expected that the project will reduce port congestion.

The project will contribute to the promotion of trade by assisting Nigeria to become a more efficient trading partner as well as to the development of investment in the non-oil sector. It is expected that the increased transparency of trade activities will limit capital flight and loss of foreign exchange (from short-shipment, over-invoicing and the shipment of sub-standard and counterfeit goods) and enhance customs revenues.

CILN expects to create an estimated 400 local jobs, 214 of which will be managerial and professional positions, and a significant portion of the staff will be female. CILN staff will receive a compensation package higher than comparable jobs in Nigeria, including housing, transportation, and insurance.

Heimann Systems S.A., a world leader in X-ray equipment, will provide the project equipment and comprehensive training programs.

The project addresses two of MIGA's priority areas: an investment in an IDA country and in Africa.