CNG Glass (Nigeria) FZE (MIGA-a7d59f0168)

Countries
  • Nigeria
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
Approved
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
Apr 17, 2017
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
International Lender to be Determined
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Energy
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)
$ 70.00 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.
Project Cost (USD)
$ 70.00 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.
Bank Documents
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jan 16, 2020

Disclosed by Bank Mar 13, 2017

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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.

China Glass Holdings Limited (CGHL) is constructing a float glass and on-line solar control glass production line with a capacity of 500tpd. The Project, which will be developed and operated by CGHL's wholly-owned subsidiary, China Glass Nigeria (CNG), is CGHL's first construction material project in Africa. The plant will be located in the Ogun Guangdong Free Trade Zone (OGFTZ), 30km from Lagos. Three sub-contractors have been engaged to carry out construction: SinoSunny Nigeria Company Ltd.; Shaanxi Nigeria Company Ltd.; and China Railway Construction Nigeria Company Ltd. (CRCC). All three are Chinese companies that are incorporated locally and have been operating in Nigeria for many years. Civil works are currently underway and are expected to be completed by the end of 2016. The plant's machinery is expected to be shipped to Nigeria by March 2017 and its commercial operation date is scheduled for September 2017.

The Project will require an area of approximately 250,000 m2, and will include construction of a raw material storage warehouse and batching; float glass combined workshop; finished products warehouse; cooling water circulation system; protective gas preparation system; furnace and chimney; and offices and worker accommodation. The production process consists of charging the raw materials required to make clear or colored glass through weighing, mixing and conveying to the furnace which produces molten glass. The molten glass then passes into a bath of molten tin where the temperature is gradually reduced and the glass sheets can be pulled off the bath by rollers. Variation in the flow speed and roller speed enables glass sheets of varying thickness to be formed. This is followed by annealing, cutting and loading.

The Project will also include construction of a natural gas power generating system (installed capacity 6 MW) and a back-up diesel generating system (installed capacity 6 MW). Natural gas will be supplied by the local natural gas company via a pipeline, which has already been constructed to supply the Ogun Guangdong Free Trade Zone. Diesel will be brought to site via truck.

The Project is located within the OGFTZ located in the Igbessa Region of Ogun State. The zone opened in 2009 as a partnership between the Ogun Statement Government and the Guangdong Provincial Government in China. A total of 10,000 ha has been allocated for the zone, but thus far, only 250 ha has been developed (i.e. land prepared and fully fenced). As of March 2016, 27 companies are operating within the zone and an additional 14 have committed investments.

Raw materials for the glass production, including silica sand, dolomite, feldspar, limestone, glauber salt and coal powder, will be sourced domestically. Soda Ash will import from oversea. Raw materials will be transported via powder truck by a licensed contractor. Both raw materials and the final product will be transported by existing roads.

 

Investment Description
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Contact Information
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No contact information provided at the time of disclosure

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