CNG Glass (Nigeria) FZE (MIGA-a7d59f0168)

Countries
  • Nigeria
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.
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 17, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
International Lender to be Determined
The holder of the loan, grant, or other investment.
Sectors
  • Construction
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, etc.
Investment Amount (USD)
$ 70.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Dec 21, 2018

Disclosed by Bank Mar 13, 2017


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Project 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
  • Multilateral Investment Guarantee Agency (MIGA)
Contact Information

No contact information provided at the time of disclosure

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/