2. 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

3. MIGA’s Role
MIGA is the entity within the World Bank Group that promotes developmentally sound foreign direct investment. It does this by providing political risk insurance (guarantees) to the private sector.
Established in 1988
173 member countries
Approximately 100 staff

4. Why Promote FDI? Job creation and provision of basic infrastructure
“Freeing up” government resources for spending in basic education, etc.
But the majority of flows go to just a handful of countries—leaving the world's poorest economies largely ignored….
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….

5. MIGA’s Strategic Priorities
Insuring investments
In IDA-eligible countries
In conflict-affected environments
In complex infrastructure projects
From one developing country to another (South- South)
MIGA’s strategic priorities
Insuring investments….
In IDA-eligible countries
In conflict-affected environments
In complex projects, particularly in infrastructure, the extractive industries, and other project finance deals
From one developing country to another (South-South)

6. Risks What “political risks” does MIGA cover?
Currency inconvertibility and transfer restrictions
Expropriation
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)
Risks

7. Risks covered Currency inconvertibility and transfer restriction
Expropriation
War and civil disturbance, including terrorism
Breach of contract
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)
Investment types covered
Equity
Shareholder loans
Loan guarantees
Loans from financial institutions
Non-shareholder loans
Non-equity direct investment

8. Added Value for Investors
MIGA guarantees can help investors
Access funding, and lower borrowing costs
Access the WBG’s collective knowledge and expertise
Establish best practice in environmental and social management
Resolve disputes by leveraging the WBG “umbrella”
Mobilize and complement insurance capacity from other public and private insurers through coinsurance and reinsurance
What is MIGA’s added value for investors?
MIGA guarantees can help investors
Access funding, and lower borrowing costs
Access the WBG’s collective knowledge and expertise
Establish best practice in environmental and social management
Resolve disputes by leveraging the WBG “umbrella”, which allows projects to stay on track
Mobilize and complement insurance capacity from other public and private insurers through coinsurance and reinsurance

9. Disclosure Summary of Proposed Guarantee
Environmental and Social Review Summary
Environmental Impact Assessment
Project Brief

10. $115 million guarantee hydropower in Uganda Project examples
Bujagali Hydropower Project in Uganda
Addresses Uganda’s acute electricity shortage
$115m guarantee from MIGA, $115m partial risk guarantee from IDA, $130m in IFC financing
$115
million guarantee hydropower in Uganda

11. $427 million guarantee port in Djibouti Project examples
Doraleh Container Terminal in Djibouti
Contributes to economic growth by helping country strengthen its position as the gateway to the African hinterland
$427 million guarantee from MIGA
$50 million reinsured with Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)
Shariah-friendly
$427
million guarantee port in Djibouti

12. $7.3 million guarantee Moldova financial sector Project examples
I.C.S. Raiffeisen Leasing S.R.L. in Moldova
Covers Raiffeisen Bank SA Romania’s shareholder loan to its subsidiary I.C.S. Raiffeisen Leasing S.R.L. (RLM) ($7.34 m)
Supports start-up phase of Raiffeisen Zentralbank (RZB) Group’s leasing operations in Moldova
Meets demand for equipment (trucks, trailers, and industrial equipment) by start-ups and SMEs
Helps develop a nascent financial sector
$7.3
million guarantee
Moldova financial sector

13. Working with World Bank Group
Six strategic themes
Contribution to Country Assistance/Partnership Strategy
Participation in specific projects with other Bank group entities
Specific initiatives
Environmental and social standards, information disclosure
MIGA’s work with World Bank Group
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

14. Gross Exposure 2008, US$ billion
6.5
5.40
5.25
5.20
5.19
5.08
5.10
4.36
US$20 billion issued in close to 100 developing countries since 1988
2.28
1.05
0.42
0.13
2008

15. Knowledge Agenda
Lack of knowledge and information about investment environments and opportunities, and perceptions of political risk often inhibit FDI in the countries that need it the most.

16. www.FDI.net Online Investment Information and Knowledge Services
A portal that promotes foreign direct investment in emerging markets by highlighting
Specific investment opportunities, and
Information on business and legal environments

17. www.pri-center.com Online Investment Information
and Knowledge Services
PRI-Center.com
A risk management information service for investors and practitioners highlighting
Country analysis and risk ratings
Research and tools from public and private PRI providers

18. www.miga.org For more information, visit www.miga.org
Or for business inquiries,
write to
or call