UN House – Beirut, Lebanon Nabil Fawaz – Sector Leader for Agribusiness Manufacturing and Services November 2008 MIGA: Facilitating Investments in Conflict Affected Countries

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP MIGA promotes foreign direct investment by providing:  Non-commercial risk insurance (guarantees) for investors and lenders  Dispute mediation services, to remove obstacles to current and future investment  Online information on investment opportunities and operating conditions in developing countries

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP MIGA’s insurance coverage  Currency Transfer Restriction and Inconvertibility  Expropriation  Breach of Contract  War and Civil Disturbance –Protects against losses arising from: Damage/disappearance of tangible assets (including revolution, insurrection, coups d'état, sabotage, and terrorism) Prolonged business interruption –Acts must have a primary intent of achieving a political objective –Temporary business interruption (proposed change to MIGA’s Operational Regulations)

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 4 Portfolio of projects in conflict affected countries  In FY , MIGA supported 14 projects with guarantees totaling $401.1 million –This represents 30% of total projects and 12% of guarantees issued –Countries include: Afghanistan (5) Bosnia Herzegovina Central African Republic Congo – DRC (2) Guinea Guinea-Bissau (2) Uganda (2)  Since its inception, MIGA has supported 159 projects in 24 conflict affected countries with guarantees totaling $2.9 billion

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 5 MIGA’s trust funds in Conflict Affected Countries  West Bank and Gaza Trust Fund ($30 million)  Afghanistan Investment Guarantee Facility ($12 million with up to $2 million 1 st Loss Position)  Bosnia-Herzegovina Trust Fund ($12 million)

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 6 Proposed New Facility for Conflict Affected Countries  Capacity: $150-$250 million donor trust fund complemented by additional capacity provided by MIGA and other public and/or private insurers Envisaged Features:  1 st loss position (up to 50% of insured amount).  Local investments  Stand-alone debt  Existing investments (up to 50% of new investments)

For more information: Nabil Fawaz