East Africa Geosurvey Ltd.

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MIGA issued a guarantee of $1.35 million to Geosurvey International, LLC of the US for its $1.5 million equity investment in East Africa Geosurvey Ltd. of Kenya. The guarantee is for a period of 15 years and provides coverage against the risks of transfer restriction, expro-priation, war and civil disturbance, and breach of contract. The project involves the development of a computerized database system for Kenyan local authority councils, which will link landbase mapping and land parcel data with property ownership and taxation records in a Land Information System. The project aims to strengthen municipal councils' property assessment procedures, as well as taxation and fees collection systems. The project will have several important developmental impacts for the Kenyan economy. Since property taxes in Kenya generally provide 20 percent of the total revenues of local governments and 1 percent of central government revenue, East Africa Geosurvey Limited's operations could potentially bolster state and community coffers. It is estimated that, with the help of the project, local governments will be able to double the collection of property-related taxes and fees within three years in the counties and towns participating in the project. The project will also permanently employ about 500 local workers. In addition, the project's operations will yield many peripheral benefits to local communities, including improving access to accurate property information, updating the local address system, improving consumer access to mortgages, and enabling municipal governments to issue bonds and access capital markets. The project is consistent with the World Bank Group strategy for Kenya, which focuses on supporting government efforts to improve economic governance and achieve fiscal adjustment. East African Geosurvey Limited will create an opportunity for better tax col-lection and possibly better municipal services.

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