Pasabahce Egypt Glass Manufacturing SAE (MIGA-13803)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Egypt
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Closed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 20, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Pasabahce Cam Sanayii. ve Ticaret. A.S.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 16.20 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jul 26, 2024

Disclosed by Bank Oct 1, 2018

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

PROJECT DESCRIPTION

On November 6, 2018, MIGA agreed to issue up to $16.2 million in guarantees covering equity and quasi-equity investments by Pasabahce Cam Sanayii. ve Ticaret. A.S. of Turkey ("Pasabahce Turkey") into Pasabahce Egypt Glass Manufacturing S.A.E. in Cairo, Egypt. The guarantees are issued for a period of up to 15 years against the risks of Transfer Restriction, Expropriation, and War and Civil Disturbance.

The project consists of an asset acquisition by Pasabahce Turkey as part of its business growth plan in the glassware sector. Investments other than assets purchased include the modernization of the plant and introduction of different production processes to improve the quality standards.

ENVIRONMENTAL CATEGORIZATION

The project is a category B under MIGA'sPolicy on Environmental and Social Sustainability.

DEVELOPMENT IMPACT

The project entails the acquisition of an existing glass manufacturer and subsequent modernization and enhanced capacity of the plant via the upgrading of production equipment, adoption of technically advanced production processes and increase in quality standards. These improvements are expected to yield higher volumes of output, as well as products of higher quality, while transferring knowledge and expertise to the local workforce. The project will source certain raw materials, production inputs and services locally, supporting domestic value chains. The project's output is mostly geared to international markets, generating revenues in foreign exchange and taking advantage of Egypt's strategic location along trade routes, as well as the country's suite of preferential trade agreements. It is estimated that over 600 employees will be working at the plant when fully operational, compared with less than 200 at present.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Pasabahce Cam Sanayii. ve Ticaret. A.S. is one of the largest glass manufacturer in Europe. As stated on the company's website, Pasabahce carries out its production operations in Turkey at the plants in Kirklareli, Eskisehir, and Denizli, and abroad at the plants in Egypt,Bulgaria, and the Russian Federation. Today, Pasabahce has 6000 employees, and 65 percent of its sales comes from exports to 140 countries.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Pasabahce Cam Sanayii. ve Ticaret. A.S. Client Industry and Trade

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works