Tractor & Equipment Ghana Limited

MIGA issued coverage for the first time to an Egyptian investor, Unatrac International Co.-S.A.E., for its shareholder loans to and equity investment in the expansion of a Caterpillar dealership in the Tarkwa region in Ghana. The $18 million insurance covers the investments against the risks of transfer restriction and war and civil disturbance.

The expansion of the project involves construction of a new warehouse for storage of spare parts and a workshop that offers on-site repair and maintenance services for Caterpillar equipment used by the local mining industry. The loans will be used for refinancing, to free-up working capital, and to finance the expansion.

The project enterprise will introduce more efficient and reliable services to the country's second-largest export sector. The construction of the warehouse involves procurement of local goods and services and the project is expected to generate substantial foreign exchange revenues. Moreover, the project also provides local staff with technical expertise and the transfer of know-how in servicing Caterpillar equipment. About 150 jobs will be created during construction and operation of the project.