4. The Multilateral Investment Guarantee Agency
(MIGA) is a member organization of the World Bank
Group that offers political risk insurance.
It was established to promote foreign direct
investment into developing countries.
It was founded in 1988 with a capital base of $1 billion
and is headquartered in Washington, DC.
175 member countries comprise MIGA's shareholders.
5. MIGA promotes foreign direct investment into
developing countries by insuring investors against
political risk, advising governments on attracting
investment, sharing information through on-line
investment information services, and mediating
disputes between investors and governments.
MIGA's membership in the World Bank Group enables
the organization to intervene with host governments
to resolve claims before they are filed.
6. Foreign direct investment can play a critical role in
reducing poverty by creating jobs, and providing basic
infrastructure
It “frees up” government resources that can be
redirected from infrastructure spending, for
example, to social sectors
But the majority of flows go to just a handful of
countries—leaving the world's poorest economies
largely ignored….
7. Izumi Kobayashi - Executive Vice President
Michel Wormser - Vice President and Chief
Operating Officer
Ana-Mita Betancourt - Director and General Counsel
Kevin Lu - Regional Director, Asia and Pacific
Lakshmi Shyam-Sunder - Chief Financial Officer
and Director, Finance and Risk Management
8. Insuring investments….
In IDA-eligible countries
In conflict-affected environments
In complex projects, particularly in infrastructure and
project finance deals
From one developing country to another (South-
South)
9. Currency transfer restrictions.
Expropriation.
War and civil disturbance.
Breach of contract.
Non-honoring of sovereign financial obligations.
MIGA guarantees offer much more than just the
assurance that losses will be recovered.
10. MIGA can cover:
New, GREEN investments.
New investment contributions associated with the
expansion, modernization, or financial restructuring
of existing projects.
Acquisitions involving privatization of state
enterprises.
existing investments with high development impact
when the investor demonstrates a long-term
commitment to the project.
11. Member’s Non-Member’s
Brunei, Sao Tome and
Members of the MIGA Principe, Niger, Somalia, Comoros, San
include 174 members of the Marino, Bhutan, Myanmar, Tuvalu, Kiribati,
Marshall Islands, Samoa, Cuba, North
United Nations and Korea, Andorra, Monaco, Liechtenstein, Nau
the Republic of Kosovo ru, Cook Islands, Niue, Vatican City and the
rest of states with limited recognition.
12. Currency inconvertibility and transfer restrictions
Expropriation (including partial and “creeping”)
War and Civil Disturbance (including
revolution, insurrection, coups d'état, sabotage, and
terrorism)
Breach of Contract
Breach or repudiation of a contract between the investor
and the Host Country authorities (particularly relevant
in infrastructure)
14. MIGA cover can help investors obtain project finance
and/or lower borrowing costs
Access to World Bank Group’s collective knowledge
and expertise
Best practice in environmental and social
management
WBG “umbrella” provides leverage in dispute
resolution, allowing projects to stay on track
Ability to mobilize and complement insurance
capacity from public and private insurers through
coinsurance and reinsurance
15. Alignment with six strategic themes to help achieve an
inclusive and sustainable globalization
Contribution to Country Assistance/Partnership
Strategy
Participation in specific projects with other Bank
group entities
Specific initiatives (example: Sustainable
Infrastructure Action Plan)
Environmental and social standards, information
disclosure
16. Bujagali Hydropower Project in Uganda
Address Uganda’s acute electricity shortage
$115m guarantee from MIGA, $115m partial risk guarantee
from IDA, $130m in IFC financing
Doraleh Container Terminal in Djibouti
Contribute to economic growth by helping country
strengthen its position as the gateway to the African
hinterland
$427m guarantee from MIGA
$50m reinsured with Islamic Corporation for the Insurance of
Investment and Export Credit (ICIEC)
Shariah friendly
17. US$ 19.5B issued
in 95 developing countries
since 1988
6.5
5.4
5.2 5.25 5.19
5.08 5.1
4.36
2.28
1.05
0.42
0.13
18. Outstanding Guarantees Portfolio
by host region, as of July 2008
41% Infrastructure 45% Europe and Central Asia
37% Financial 20% Latin American and the Caribbean
9% Agribusiness and Manufacturing 16% Sub-Saharan Africa
9% Oil, Gas and Mining 11% Asia and the Pacific
11% Middle East and North Africa
19. Investor Country Gross Exposure Host Country Gross Exposure
(%) (%) $M
Austria 19.3 Russian Federation 13.6 880.4
France 14.3 Turkey 10.4 671.8
Belgium 10.1 Ukraine 9.6 623.1
Spain 7.1 Djibouti 6.3 407.4
United Arab Emirates 6.1 Uruguay 4.6 300.6
South Africa 4.7 Mozambique 3.7 237.3
Finland 4.6 Brazil 3.6 235.4
United Kingdom 4.2 Costa Rica 3.0 192.3
Switzerland 2.9 Bosnia and Herzegovina 2.9 189.1
Luxembourg 2.6 China 2.6
169.0
Total 75.9
Total 60.3
3,906.4
