On December 19, 2012 MIGA issued a guarantee of $6.2 million covering an investment by Cotecna Inspection Services S.A. (COINS) of Switzerland in Cotecna Inspection S.A., Niamey Liaison Office in Niger. The coverage is for a period of up to six years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
COINS will provide services to the government of Niger on a build-operate-transfer basis in return for a monthly operating and management service fee. These services include preshipment inspection and document verification at origin; the provision, installation, operation, and maintenance of three high-energy scanners at three sites (Niamey Route, Niamey Rive Droite, and Maradi); goods verification, inspection, and valuation; training and logistic assistance to the government for the modernization of national customs with the objective of enhancing budgetary revenues and security; and the eventual transfer of the scanners to the government.
The project will introduce greater transparency and efficiency into Niger’s import verification processes. The transparent audit trail provided by scanning data will also help the government secure revenues through the elimination of opportunities for fraud and fiscal evasion. Security at points of entry will also be enhanced by ensuring that containerized goods are not illegal. In addition, the proposed project will facilitate trade through more efficient and rapid verification of imported goods.
COINS will provide training and build capacity for the government’s future takeover of operations and improve public resource management. The operations will sustain136 local jobs.
The World Bank Group’s areas of focus in Niger include increasing transparency and governance as well as improving cross-border trade. This project supports both these objectives. It is also aligned with MIGA’s strategic priority of supporting investments into countries eligible for concessional lending from the International Development Association. This is the first guarantee MIGA has issued for an investment in Niger since the country became a MIGA member in 2012.
