Zaklady Celulozowo-Papiernicze Kwidzyn S.A.

MIGA issued coverage for $50 million to International Paper Investments, (IPI) of the United States against the risks of currency transfer, expropriation, and war and civil disturbance. IP1 will assist in the privatization and modernization of Zaklady Celulozowo Papiernieze Kwidzyn S.A., once a wholly government-owned facility. IPI has acquired 80 percent of the enterprise for $120 million, and may acquire additional shares under Poland's privatization law. With the proposed modernization program, Kwidzyn will become one of the most modem pulp and paper manufacturing facilities in Europe. In addition to the cost of acquisition, IPI will spend $175 million on the modernization, some of which will be for upgrading skills and establishing higher standards of efficiency and quality. The project will use local raw materials and feedstocks, help fill the growing demand for paper goods in Poland, and provide Poland with needed export opportunities. Additional political risk insurance was provided by the Overseas Private Investment Corporation (OPIC), the U.S. government national investment insurer.