Nakheel Palestine for Agricultural Investment
Project Description
On May 15, 2023, MIGA issued guarantees to Palestine Development and Investment Company, Ltd. (PADICO) of the Republic of Liberia for up to $10.38 million, and on May 22, 2023, to Siraj Palestine Fund I, Limited of the Cayman Islands for up to $4.05 million and Siraj Fund Management Company of the Palestinian Territories for up to $2.18 million. The total amount of guarantees issued was up to US$16.61 million, covering equity investment into Nakheel Palestine for Agriculture Investment (the Project), a leading producer of dates in the West Bank. The guarantees were issued for a period of up to 5.5 years against the risks of expropriation and war and civil disturbance, including temporary loss of income. The guarantees were underwritten by MIGA as an administrator of the West Bank and Gaza Investment Trust Fund (WBGTF) and MIGA’s Conflict-Affected and Fragile Economies Facility (CAFEF).
The Project’s main objective is to cultivate date palm trees and to produce high-quality dates to cover the demand in the local market and build market share in international markets. The additional investment includes the Project expansion from two to seven farms, a packaging facility for post-harvest handling of dates, a sorting and grading house, a cold storage facility, and a rooftop solar power plant, all located in Jericho, West Bank.
Environmental Categorization
The project is categorized as B under MIGA’s Policy on Environmental and Social Sustainability. Environmental and social impacts related to the Project are limited in nature and readily addressed through mitigation measures. Click here for the project’s Environmental and Social Review Summary.
Development Impact
The Project is expected to continue to provide benefits regarding employment and the environment. In 2021, the Project employed 74 permanent and 741 temporary employees, of which around 30% were women, and 60% of the employees came from low-income families. It also indirectly contributes to the livelihoods of several hundred people — independent producers from which it buys part of the production and the distributors of its products. The Project is a critical employer in a region hard hit by unemployment and poverty where most population makes a livelihood from agriculture.
The Project reduces its carbon footprint by collecting solar energy and reducing electricity usage, where Nakheel utilizes rooftop solar panels, a facility consisting of 1,299 installed panels, with a capacity of 0.5 Mega Watts (MW), covering 20% of the Project Enterprise’s electricity needs.
The new MIGA guarantees are expected to increase further the project’s development impact in the Palestinian Territories in terms of employment, earnings, and taxes paid. The coverage is consistent with the World Bank Group country engagement strategy supporting inclusive recovery by encouraging private investment and job creation. Furthermore, the Nakheel project contributes to MIGA’s strategic priority of demonstrating leadership in global topics such as gender and climate.