Hyundai Motor Pakistan Project (MIGA-3612)

Countries
  • Pakistan
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
Active
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
Jan 10, 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
Sojitz Corporation
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
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)
$ 103.00 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.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jan 5, 2018

Disclosed by Bank Nov 21, 2017


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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 Sojitz Corporation of Japan has applied for MIGA guarantees of up to JPY12.3 billion (US$103 million) for its equity investments in Hyundai Nishat Motor Private Limited project in the Islamic Republic of Pakistan and its loan guarantees to commercial lenders to the project. The guarantees are available for up to 15 years, and will provide coverage against the risks of currency inconvertibility and transfer restriction, expropriation, war and civil disturbance and breach of contract. The project involves the design, construction, and operation of a greenfield motor vehicle assembly plant with a maximum annual production capacity of 30,000 units, located within the M3 industrial City in Faisalabad of Punjab province. The project will establish flagship dealerships, bring new technologies to improve production efficiencies, as well as increase competition within the domestic automobile sector. Information on this project is being disclosed under the early disclosure procedures outlined in MIGA's Access to Information Policy. Environmental Categorization The project is a category B under MIGA's Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary. Development Impact The project is expected to support over 500 sustainable jobs once the assembly plant is fully operational, in addition to short term jobs created during the construction phase. The project will raise domestic production standards by bringing in international expertise, yet also support local businesses by utilizing and further developing existing network of suppliers for localized automotive components. Significant contribution to government revenues can be expected in the form of payments for sales taxes and import duties. MIGA's proposed support for the investment is aligned with the World Bank Group's Country Partnership Strategy to support private sector development, as well as MIGA's mid-term strategy FY18-20 to support investments to countries eligible for financing from the International Development Association (IDA). Pakistan is an IDA-blend country as it is also creditworthy for borrowing from the International Bank for Reconstruction and Development (IBRD).
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Sojitz Corporation Client -

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/

How it works

How it works