1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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)

8. Thank you! Please visit us at www.miga.org