REVIVING INVESTMENT IN THE MENA REGION 6 December 2011 Alexander Böhmer, Head, MENA-OECD Investment Programme.

Slides:

Advertisements

Similar presentations

Investment Security in the Mediterranean Region (ISMED) Meeting of the MENA-OECD Renewable Energy Task Force, 9 March 2012.

Advertisements

STRENGTHENING FINANCING FOR DEVELOPMENT: PROPOSALS FROM THE PRIVATE SECTOR Compiled by the UN-Sanctioned Business Interlocutors to the International Conference.

Financing of OAS Activities Sources of cooperation Cooperation modalities Cooperation actors Specific Funds management models and resources mobilization.

1 African ICT Roadmap to Achieve NEPAD Objectives Arusha, Tanzania, 1-3 April 2003 Roles of Government and ATU in the Implementation of NEPAD ICT objectives.

Conflict Affected and Fragile States Facility (CAF) Environmental and Social Challenges Trust Fund Two new Facilities: WBG Donor Forum – Paris – May 19,

International Conference on Small States and Economic Resilience April 2007 Valetta, Malta Islands and Small States Institute Government intervention.

Expanding Engagement with the Private Sector on GEF Projects 1 ECW Nicaragua 3-5 March 2015.

FDI TRENDS AND POLICY OPTIONS IN LDCs: TRAINING AND CAPACITY-BUILDING 25 September 2007 INVESTMENT PROMOTION IN INTERNATIONAL INVESTMENT AGREEMENTS AND.

UNRESTRICTED Infrastructure Assessment as Viewed by Technology Holders IAEA Technical Meeting December 10-12, 2008 R. Godden.

Investing in Employment and Entrepreneurship

Africa's Accelerated Industrial Development Action Plan “AIDA” AFRICAN UNION COMMISSION Department of Trade and Industry By Hussein Hassan Hussein Head.

Public Sector Perspective on CSR and Responsibility Who is Responsible for Responsibility? Santiago, Chile September 2005.

Commercial Frameworks for Energy Investment Regional Issues and Cooperation Mahama Kappiah ECOWAS Commission May 2008.

Concentrated Solar Power in Middle East and North Africa 9 June 2011 Philippe Roos

Overview of financial sources and access modalities for mitigation actions, including support for CDM and NAMAs Regional Workshop on CDM and NAMAs for.

Describe the key policy measures that make globalization sustainable.

ADB Support of Public Procurement Reform Presented By: Amr J. Qari, Procurement Specialist Seventh Regional Public Procurement Forum, May , 2011.

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 1 Investment Policy, Legal Framework, & Promotion Investment Facilitation Sector.

Overview Summary from Africa and ASEAN assistance Dr. Peter Pembleton, UNIDO.

Workshop on Developing Corporate Bond Market Mr. Masato Miyachi Office of Regional Economic Integration Asian Development Bank Session 1: Overview of Corporate.

Regional Forum on Developing and Financing Low Emission Development Strategies for the Agriculture, Forestry and Other Land Use Sector: Moving from Promise.

International Forum on Remittances 2007 Washington D.C., October 2007 Euro-Mediterranean remittances: Partnerships and Investments Pedro J. F. de.

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 1 MIGA: Managing Risk in a Challenging Environment Pristina, Kosovo, May 2013.

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Steven P Janes Sherrards Solicitors London UK CASE STUDIES:

A Common Immigration Policy for Europe Principles, actions and tools June 2008.

Assessment of World Bank and IFC Policies on Transparency for Extractive Industries George Holliday Europe and Central Asia Program Bank Information Center.

Country Ownership of National HIV & AIDS Response: A Private Sector Perspective Country Ownership of National HIV & AIDS Response: A Private Sector Perspective.

DeRisk Advisory Services Ltd. Doing Business in Conflict-Affected Countries Lisa Curtis 14 th July 2009.

MENA-OECD Investment Programme Draft Policy Considerations on Incentives Working Group 3 Meeting Cairo, Egypt 6-7 September 2006.

Supporting Tourism Investment in the Pacific Islands: IFC’s Sector-based Approach to Overcoming Investment Climate Barriers Trinnex Meeting 30 August 2010.

Policies in promoting private finance For Local Government Infrastructure Washington, 01 October 2004 Policies in promoting private finance For Local Government.

Justice Reform Practice Group Legal Vice Presidency The World Bank ABA Rule of Law Informational Series - May 4, 2011, Washington DC Presenter: Barry Walsh.

OVERVIEW OF CAPITAL MARKET DEVELOPMENT IN THE LAC REGION Carolin A. Crabbe Infrastructure and Financial Markets Division INTER-AMERICAN DEVELOPMENT BANK.

Policy options and recommendations José Palacín Chief, Innovative Policies Development UNECE Minsk, 19 June 2014.

Financing climate-friendly projects in the Balkan region DAC PROJECT CAPACITY BUILDING IN BALKAN COUNTRIES IN ORDER TO DEAL WITH CLIMATE CHANGE Prepared.

Building Blocks for a Successful Public- Private Partnerships Presented by Igor Abramov Counsel & Co-chair, Eurasia and Russia Practice Group, Heenan Blaikie.

Challenges in Meeting Public Sector Financing Needs – Financing Key PPP Projects. A Paper Delivered at the 2008 Perchstone & Graeys Annual Lecture by Jide.

Financing for Development United Nations Risk Mitigation for Mobilizing Private Sector Investments in Infrastructure in Developing Countries Pradeep Singh.

Doing Business With OPIC. OPIC’s Mission Statement “To mobilize and facilitate the participation of the United States capital and skills in the economic.

Working with the private sector – experience from Russia Business Focal Points Workshop Bratislava, 25 October 2004 United Nations Development Programme.

Public Private Partnerships (PPPs) and The World Bank

International Seminar on Energy Cooperation in Northeast Asia : Directions and Implementation Korea Energy Economics Institute Financing of Energy Infrastructure.

Legal Aspects Related to Brownfield Regenerations Prof. Maros Finka, M.arch., Ph.D. „This project has been funded with support from the European Commission.

TOWARDS BETTER REGULATION: THE ROLE OF IMPACT ASSESSMENT COLIN KIRKPATRICK IMPACT ASSESSMENT RESEARCH CENTRE UNIVERSITY OF MANCHESTER, UK UNECE Symposium.

"Political Risk and Risk Mitigation as Part of the Investment Climate“ Stephan J. Dreyhaupt, Advisor, Investment Climate Department, World Bank Group.

National Planning Department. Mobilizing private investment for low carbon development October 14 th, 2015.

Ecuadorian IIA policy: a complex and dynamic process Dr. Gustavo Guerra B. This presentation does not reflect the official position of Ecuadorian government.

Draft Law on Public Private Partnerships (PPP’s) And Incentives for Foreign Investment.

Private Sector Expectations towards NAMA Financing Latin America and Caribbean Regional NAMA Workshop 14 th September 2015.

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 Coverage of Sovereign and Sub-sovereign Risks in Infrastructure Multilateral.

Common Legal Basis for Transit Transportation The European Union ’ s Tacis TRACECA programme for Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan,

Ideas to engage GEF and carbon finance under GEF-5 Input from IDB Washington D.C. 15 November 2010.

Investment Climate and the role of Diaspora in economic development, financial and fiscal incentives for Kosovo Kreshnik Thaqi May, 2014.

Economic Advisory – PPP Unit 1 Public-Private Partnerships and the FGP Isaac Averbuch Washington Oct, 2008.

Dashnyam TSETSEGMAA Head of Promotion and Consulting Division Investment Environment in Mongolia.

SME Financing in the Middle East Sibel Beadle 11 May 2016.

PPPs for Value Chain Development

Presentation to the Public-Private Partnerships in Highways Workshop

Legal Aspects Related to Brownfield Regeneration

Risk Mitigation for Investments in MOZAMBIQUE

European External Investment Plan

Public Private Partnerships (PPP)

UNCITRALThird International Colloquium on Public-Private Partnerships (PPPs) October 2017, Vienna Experts for Chapter IV October 2017.

ASEAN PPP Summit The Public-Private Partnership Model and

Effective Partnerships: What’s Involved, Who’s Involved?

The Government Role in BOT

a. Financing b. Designing c. Construction d. Operating

Seventh Regional Public Procurement Forum, May , 2011

Summary from Africa and ASEAN assistance Dr. Peter Pembleton, UNIDO

The U.S. International Development Finance Corporation (the “DFC”)

Presentation transcript:

REVIVING INVESTMENT IN THE MENA REGION 6 December 2011 Alexander Böhmer, Head, MENA-OECD Investment Programme

Security: safety of employees I. Investment decisions during transition periods (1/2) Go/ No Go Issues High Concern Standard Concern Security: ability to operate without external disruptions Contract validity (especially with new governments) and enforcement (legal mechanisms) Expropriation Capital transfer Transparency of procurement decision and award processes Likely return on investment Future opportunities in country Company’s comfort with type of project, operating environment, and skill requirements Factors impacting investment decisions during transition periods/ phases of instability : 2

Perceptions of risk vary strongly by sector Some sectors – oil and minerals, especially – are used to challenging political environments and security issues Other sectors with longer term investment perspectives like manufacturing and service sectors are typically more fearful and risk- averse 3 Sector differences matter I. Investment decisions during transition periods (2/2)  Special measures are required from host and home governments to facilitate investment

II. Policy options for host governments (1/3) 4 Perceived RiskHost Government Action Security and Political Risks Contract Validity and Enforcement Adherence to BITs/ ICSID/ NY Convention Clear contract terms PPP law Guarantee security for operations Enable involvement of guarantee agencies Provide incentives  Host governments can mitigate certain risks perceived by investors  Certain risks may be beyond reach (e.g., political turmoil)

Examples of recent measures taken by MENA countries to facilitate investment : 5 Creation of an Online Dispute Settlement Body by the General Agency for Investment, in 2011 Improvements in dealing with construction permits, protecting investor’s rights and paying taxes, in 2011 (World Bank Doing Business Report 2012) Strengthening of the legal framework for public private partnerships (PPP) and promoting draft regulations to lower the cost of credit information Jordan Egypt Morocco II. Policy options for host governments (2/3)

II. Policy options for host governments (3/3) 6 Expropriation and Capital Movement Explicit references in investment law Referral to dispute resolution mechanisms in contracts BITs Transparency Clear procedures (procurement, licenses) Clear contract terms Dispute resolution mechanisms Perceived RiskHost Government Action

III. Policy options for home governments/ International Financial Institutions (1/2) 7 Inconvertibility and Transfer Risk, Political Violence Risk, Expropriation Risk, Breach of Contract, Government Non- payment Special investment funds e.g.: MIGA’s MENA Trust Fund Perceived RiskGovernment/ IFI Action Consider improving existing Guarantee/ Insurance offer (extended risk coverage, fees, extended country plafond) Risk of investing in particular regions or sectors

Examples of measures by home governments/ IFIs to facilitate investment : 8 Multilateral Development Banks G8 countries confirmed that Multilateral Development Banks could provide USD 20 bn to support reform efforts in Egypt and Tunisia over the period at the G8 Marseilles meeting Bilateral Investment Assistance US support to investment in MENA through OPIC: USD 2 bn France support to Egypt and Tunisia: Immediate budgetary support, a reinforcement of the guarantee systems for the benefit of SMEs, and the development of key infrastructure projects (USD 1,8 bn) G8 Deauville Partnership Increased coordination and co-operation between IFIs from the Partnership countries in the areas such as technical assistance programmes and strengthened investment frameworks New proposed Instruments Investment Security in the Mediterranean Region (ISMED) III. Policy options for home governments/ International Financial Institutions (2/2)

9 EC/ NIF window for lowering guarantee premium costs Long-term investments lead by host states and project sponsors Joint EC-OECD Support Programme on legal security assistance, insurance monitoring and follow up of ISMED process MIGA or alternate qualified operator’s role as facilitator in the guarantee and insurance market Extending actual and encouraging further risk-sharing mechanisms IV. Investment Security in the Mediterranean Region (ISMED): Proposals for facilitating the implementation of long-term infrastructure projects