MIGA GUARANTEES for CARBON FINANCING I N S U R I N G I N V E S T M E N T S E N S U R I N G O P P O R T U N I T I E S MIGA GUARANTEES for CARBON FINANCING Patricia Veevers-Carter Paris – November 19-20, 2003

MIGA Guarantees Program Commercial Risk Investors/ financial institutions Non-commercial Risk MIGA Coverages Transfer restriction and currency inconvertibility Expropriation War and civil disturbance Breach of contract

MIGA’S GUARANTEE PROGRAM Expropriation Protects against losses arising from Nationalization and confiscation Creeping expropriation Claim does not depend on an award against Host Government

MIGA’S GUARANTEE PROGRAM Breach of Contract Protects against losses arising from: Breach or repudiation by Host Government of a contract with the investor Could includes wrongful call of Performance Bonds Claim triggered by non-payment of an arbitration award by Host Government

MIGA’S GUARANTEE PROGRAM Breach of Contract Mechanism   MIGA’S GUARANTEE PROGRAM Breach of Contract Mechanism Breach of Contract Amicable Resolution  Mediation Successful Resolution Arbitration Unsuccessful Arbitration Successful Arbitration Enforcement Local Court MIGA Pays Claim Host Government Pays

MIGA Possible MIGA coverage for JI and CDM Expropriation without an award Opinion of ICC International Center of Expertise, or other agreed forum Opinion establishes that loss seems to be caused by a breach of the Kyoto Protocol by the Host Government

MIGA Possible risks to be covered for JI and CDM The Host Government revokes the Kyoto Protocol or other agreement under Greenhouse Gas Emission legislation The Host Government is disqualified as a JI Track 1 country The Host Government does not allocate the amount of ERs promised The Host Government fails to transfer ERs for any other reason The Host Government does not establish a designated national authority (DNA)

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