Sartid Fahop d.o.o.

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MIGA has provided $3.6 million (€2.93 million) in reinsurance coverage to the Slovene Export Corporation (SEC), the official Slovene export credit agency, supporting its guarantee to Alpos d.d. of Slovenia for Alpos's equity investment in Sartid Fahop d.o.o. in Serbia and Montenegro. The reinsurance contract will cover the risks of transfer restriction, expropriation, and war and civil disturbance for a period of nine years. Alpos, a well-known Slovene company that produces pipes, profiles, metal furniture, and aluminum products, has recently acquired Sartid Fahop d.o.o., a Serbian firm. Alpos' management plans to substantially increase the plant's production over the next five years by modernizing the company's marketing, management techniques, information technology, and machinery. This project is expected to yield several significant developmental benefits for the local economy. Over the first five years of operation, the Sartid Fahop plant is expected to pay e2.3 million in taxes and levies to the government. More than 20 percent of the plant's finished products are targeted for exports to neighboring countries, including Bosnia and Herzegovina, Hungary, Bulgaria, and Romania. Such regional trade will contribute to improving the country's trade balance, as well as positively contribute to building up regional commercial relations and networks in the Balkans. Moreover, a significant portion of the plant's raw materials will be procured locally from U.S. Steel Serbia in Smederevo, Serbia. A priority objective of the reinsurance is to free up SEC's capacity to facilitate future Slovenian investments into Serbia and Montenegro, and to allow SEC to diversify its portfolio. Moreover, by underwriting this investment, MIGA meets four of the agency's development priorities as it supports a South-South SME project in a post-conflict, IDA-eligible country. promotion strategies. --Contract cancelled--

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