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Student Accommodation Public Private Partnership

$47 million
Summary of Proposed Guarantee

Project Description

This summary covers a proposed investment Old Mutual Malawi (OMM) Limited (“Guarantee Holder”). OMM seeks MIGA insurance coverage against the risks of Breach of Contract as well as Expropriation and War and Civil Disturbance on its equity investment of up to US$47 million for a period of 20 years. The Project entails the investment by OMM in OMIG Student Accommodation Limited to construct and operate student accommodation facilities at three (3) locations in the university system of Malawi, which includes (i) the Kamuzu University of Health Sciences Lilongwe Campus (KUHeS LL); (ii) Kamuzu University of Health Sciences Blantyre Campus (KUHeS Blantyre); and (iii) Lilongwe University of Agriculture and Natural Resources (LUANAR), Bunda Campus under a 35-year Public Private Partnership Agreement between OMM and the Government of Malawi (GoM) and the Universities Council. The PPP is structured on a Build Operate Transfer (BOT) basis. 

The Project once constructed and completed will provide a total of 4,742 new beds in high-quality accommodations. All developments are located on University land within established campus boundaries. The Project includes the construction and operation of the student accommodation facilities that includes: i) KUHeS LL consisting of 154 beds (102 rooms) with a development footprint of 3,063 m2;  ii) KUHeS Blantyre consisting of 560 beds (359 rooms) with a development footprint of 11,595 m2; and iii) LUANAR, Bunda Campus consisting of 4030 beds (2,318 rooms) with a development footprint 61,834 m2. 

If there are any material changes in the Project’s scope from what has been shared with MIGA during the due diligence phase and presented in this review summary, MIGA may update the Environmental and Social Review Summary and Environmental and Social Action Plan as needed. Such information disclosure will be governed by MIGA’s Access to Information Policy.

Environmental Categorization

Based on initial environmental and social information received, the Project has been categorized Environmental Category B according to the MIGA Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary (ESRS) and Environmental and Social Action Plan (ESAP) prepared by MIGA for this Project.

Development Impact

The project is aligned with the WBG’s Country Assistance Strategy (CAS) FY13-FY17  for Malawi, under Thematic Area 1, Promoting sustainable, diversified and inclusive growth, Result Area 2, Enabling a business environment that promotes competitiveness and enhances productivity, as the project mobilizes private sector capital under a first implementation of PPPs in the HE sector; and Thematic Area 2, Enhancing human capital and reducing vulnerabilities, Result Area 3, Improved delivery of public services, as the project supports access to HE in the country.

The project is consistent with the findings of the latest Systematic Country Diagnostic (SCD), dated December 2018, which identifies the need for Malawi to continue investing in human capital, while promoting private investments.  The project is also aligned with the draft Country Partnership Framework (CPF) FY21-25 for Malawi, which is under preparation, under Focus Area 2, Promoting private sector-led jobs and livelihood, Objective 2.1, Supporting MSMEs and creating markets during COVID and beyond, as the project helps create a first-time PPP market in the HE sector via private sector mobilization to boost student accommodations and access to HE services.

MIGA’s participation in the Project will facilitate compliance with higher environmental and social standards than the local ones, in line with MIGA’s Performance Standards. MIGA’s support for this Project is also consistent with MIGA’s strategic objective of supporting IDA countries and high impact investments channeled through the private sector.