National Beverage Company - Gaza Branch
This summary covers an equity investment by National Beverage Company of West Bank and Gaza in its distribution branch in the Gaza strip. The investor has applied for a MIGA guarantee of $2.3 million for a period of up to 10 years against the risks of expropriation and war and civil disturbance. The proposed guarantee would be underwritten through the MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund.
National Beverage Company Limited (NBC) produces and distributes beverages (carbonated soft drinks, juice, and water) in the West Bank and Gaza. The investment involves the expansion of a NBC branch in the Gaza Strip (Gaza Branch) and enhancement of its distribution efficiencies by renovating a warehouse, installing new distribution equipment, and purchasing new trucks. Gaza Branch, located in the Gaza Industrial Estate, was established in 1999 as a distribution center. The products are manufactured in West Bank, then delivered to and stored in a warehouse in the Gaza Strip for distribution to the retailers.
The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. NBC has in place an ISO and OHSAS certified social and environmental management system, including incident management procedures, as well as a corporate social responsibility policy that governs community engagement. The main social and environmental risks that must be managed are worker health and safety, fuel storage and truck traffic safety, pollution prevention and abatement, and community health and safety. The draft Environmental and Social Assessment Report, which was prepared by the client and is disclosed along with this summary of proposed guarantee, outlines the social and environmental risks and mitigation measures along with specific community outreach activities related to the warehouse and distribution activities in Gaza. MIGA has determined that the production facility in the West Bank is an associated facility and MIGA will review available social and environmental audits for this facility.
The proposed guarantee is in line with the World Bank’s interim strategy for the West Bank and Gaza to support economic and private sector development, and to contribute to economic diversification. MIGA’s proposed support will help sustain NBC’s ongoing operations in Gaza, employing around 40 full-time staff at a time when job opportunities are extremely limited due to the ongoing blockade of the Gaza Strip. The proposed guarantee is also in line with MIGA's strategy and business priorities of supporting investments in conflict-affected environments.