Political Risk Insurance Solutions

1. MIGA in the World Bank Group

2. Product Line
3. Underwriting Procedures
4. MIGA Value Added
5. MIGA’s Performance
6. Project Structures

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 1

 World Bank Group

IBRD IDA IFC MIGA

International Bank International International Multilateral
for Reconstruction Development Finance Investment
and Development Association Corporation Guarantee Agency
Est. 1945 Est. 1960 Est. 1956 Est. 1988

Support countries’ Support countries’ Promote private sector Promote cross-border

Role: economic and economic and development investment and lending
institutional development institutional development

Governments of member Governments of member Investors in member Debt and Equity investors in
countries with annual per countries with annual per countries member countries
Clients:
capita income between capita income of less than
$1,025 and $6,055 $1,025

- Technical Assistance - Technical Assistance - Equity/Quasi-Equity - Political Risk Insurance

Products: - Credit Enhancement
- Loans - Interest-Free Loans - Long-Term Loans
- Policy Advice - Policy Advice - Advisory Services

Shared Mission: “End extreme poverty and build shared prosperity”

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 2

 1. MIGA in the World Bank Group
2. Product Line
3. Underwriting Procedures
4. MIGA Value Added
5. MIGA’s Performance
6. Project Structures

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 3

Risks Faced by Investors and Lenders: Political Risk Insurance Solutions

Inability to convert or transfer dividends or Transfer Restriction and

loan payments due to FX restrictions Convertibility Cover

Destruction or interruption of business due to War and Civil Disturbance

political violence Cover

Government nationalizes or otherwise makes

it impossible to operate the project through Expropriation Cover
discriminatory measures

Failure of government to honor obligations

under contractual agreements and Breach of Contract Cover
subsequent failure to honor arbitral award

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 4

Eligible Investments

• Cross-border investments from any MIGA member country to a

MIGA “developing member country”* in the form of:
– equity
– shareholder loans
– shareholder loan guaranties
– non-shareholder loans
• Other forms of investment, such as technical assistance and
management contracts, asset securitizations, capital market bond
issues, leasing, services, and franchising and licensing agreements,
may also be eligible for coverage

* The list of developing member countries is available on www.miga.org.

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 5

 General Terms

• MIGA can cover up to 90 percent of equity and 95

percent of debt
• Can cover both equity and debt in same project
• Tenors up to 15 years (occasionally up to 20 to match
the term of contract – e.g. Power Purchase Agreement)
• MIGA cannot terminate the contract unless the
investor defaults on its contractual obligations to MIGA
• Client may reduce or cancel coverage without penalty
on any contract anniversary date starting with the first
or third anniversary

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 6

 1. MIGA in the World Bank Group
2. Product Line
3. Underwriting Procedures
4. MIGA Value Added
5. MIGA’s Performance
6. Project Structures

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 7

 Underwriting Process
Investor
Preliminary Application 
Definitive Application (fees apply) 
Initial Screening Meeting 
Underwriting (2-4 months)
• Analysis of development impact
• Environmental and social review Public
•
•
Integrity checks
Economic, financial viability assessment
Host
Country
Disclosure 
• Pricing and reinsurance Approval

Second Internal Review Meeting


Board Approval 
Contract Preparation & Signing  
Monitoring/Evaluation  
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 8
 1. MIGA in the World Bank Group
2. Product Line
3. Underwriting Procedures
4. MIGA Value Added
5. MIGA’s Performance
6. Project Structures

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 9

MIGA’s Value Added

• Management of risks at pre-claim level (110+ pre- claims among over

Strong pre-claim 800 projects. Two claims paid for expropriation, Seven for war and civil
management disturbance)
• Leveraging the World Bank network

• Highly rated multilateral by Basel Committee

Highly rated
• Reduce risk weighting and capital provisioning

• Strong capital base

Financially stable
• Mobilize reinsurance capacity

Strong risk • Operates in challenging markets

appetite • Longer tenors (up to 20 years)

Environmental
and social risk • Best practices in environmental and social standards
mitigation

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 10

 1. MIGA in the World Bank Group
2. Product Line
3. Underwriting Procedures
4. MIGA Value Added
5. MIGA’s Performance
6. Project Structures

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 11

 MIGA’s New Guarantee Issuance
(US$ billion in fiscal year)

4.8

4.3

3.2

2.7 2.8 2.8

2.1

1.5

2010 2011 2012 2013 2014 2015 2016 2017

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 12

 MIGA’s Gross Exposure
(US$ billion in fiscal year)

17.8

 Supported more than 800 14.2

projects in 110 countries 12.4 12.5

10.3 10.0
9.1
7.7
7.3
6.5
5.3

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 13

 1. MIGA in the World Bank Group
2. Product Line
3. Underwriting Procedures
4. MIGA Value Added
5. MIGA’s Performance
6. Project Structures

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 14

 Political Risk Insurance – Expropriation, Transfer Restriction, War and Civil
Disturbance Cover
Elif Global Packaging S.A.E, Egypt

Elif Plastic Elif Global

(Turkey) (Turkey)  Project: New packaging
plant in 6th of October
1% equity 99% equity City’s Industrial Zone with
Elif Loan
initial production capacity
Guarantee*
of 15,000 tons of plastic
packaging per year
Landesbank Baden-
€8.3 M loan
Wurttemberg (LBBW)  MIGA cover
Elif (Egypt)
• Amount: $26.4m
$15.5 M A loan
• Tenor: 15 years (equity);
10 years (loan
guarantee)
• Issued: June 2014
*Elif Plastik will guarantee the LBBW loan
Elif Plastik and Elif Global have jointly guaranteed the IFC loan

Guarantee holder
Project enterprise

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 15

 Political Risk Insurance – Expropriation, Currency Inconvertibility and Transfer
Restriction, Breach of Contract
ACWA Zarqa Thermal Power Station, Jordan

ACWA Power International Privatization Social Security

(KSA) Holding Co. Corporation
(Kuwait)  Project: Design, construction,
(Jordan)
100% ownership, operation and
maintenance of a combined cycle
ACWA Power Global dual fuel thermal power
30% 70%
(UAE)
generating facility with a net
100% installed capacity of 485
megawatts. It will replace a 363
ACWA Power Jordan Holdings megawatt power plant
IFC
(UAE)
decommissioned in December
85% 15% Kingdom 2015.
Electricity Holding
Red Sea Energy  Power to be sold to NEPCO under
(Jordan) (Jordan)
25 year PPA.
100%/{60%}* 0%/{40%}*  MIGA cover for non-shareholder
IFC loan:
Non-shareholder IA+ Guarantee
EBRD GoJ •Total Amount: $215.6 m
loans Mahatat Al Zarqa Le Tawleed Al Takah Al
CCB (Jordan) •Tenor: 20 years
Karabaieyaha •Issued: Dec. 2016
ICBC (Jordan) SEPCO
OFID (China)
EPC
EAB Contract
Obligor WSA O&M + LLA
PPA+ TCA
Guarantee holder
Project enterprise WAJ NEPCO CEGCO
* Reflects future acquisition (Jordan) (Jordan) (Jordan)

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 16

 Political Risk Insurance – Breach of Contract Cover
Azito Energie S.A., Côte d’Ivoire

Proparco BIO DEG

FMO BOAD BICICI

 Project: Conversion of the
Globeleq, IPS Direct existing thermal power
Agreement
Loans plant from simple-cycle to
Shareholder combined-cycle
Loan

 20-year power purchase

Compagnie Ivoirienne
de l’Electricité
agreement with CIE
Hyundai Engineering &
Construction Co. (Electricity Off-taker)
(EPC Contractor) Azito Energie S.A.  MIGA cover
Irrevocable
Instruction to • Amount: $116.1
Azito O&M-affiliated to Off-take and Pay
Globeleq • Tenor: 20 years
(Operator)
Government of • Issued: December 2012
Côte d’Ivoire
Alstom Power Systems SA
(Major Maintenance) Concession
Agreement Gas Sales Agreement

Obligor Afren, CNR, Foxtrot, Rialto

Guarantee holder (Gas Producers)
Project enterprise

MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP 17

Senior Management Team, Washington DC
Keiko HONDA Sarvesh SURI Santiago ASSALINI Merli BAROUDI
Executive Vice-President Director Operations Director Director
and CEO Acting Vice-President and COO Finance and Risk Economics and Sustainability
+1 202 473 2503 +1 202 458 9760 +1 202 458 5060 +1 202 473 1371
khonda@worldbank.org ssuri1@worldbank.org sassalini@worldbank.org mbaroudi@worldbank.org

Muhamet FALL Aradhana KUMAR-

Associate Director CAPOOR
and Chief Underwriter Operations Director and General Counsel
+1 202 458 2695 +1 202 473 5952
mfall3@worldbank.org akumarcapoor@worldbank.org

Sector Managers, Washington DC

Nabil FAWAZ Elena PALEI Olga SCLOVSCAIA Marcus WILLIAMS
Agribusiness and Infrastructure – Telecom, Finance Energy and Extractive
General Services Transport and Water and Capital Markets Industries
+1 202 473 8437 +1 202 473 4642 +1 202 458 2823 +1 202 473 1023
nfawaz@worldbank.org epalei@worldbank.org osclovscaia@worldbank.org mwilliams5@worldbank.org

MIGA – Regional offices

Tim HISTED Jae Hyung KWON Chris MILLWARD Hoda MOUSTAFA
Head Head Head Head
South and Southeast Asia North Asia Europe and Central Asia Africa
+65 9029 4078 +82 (0) 32 713 7020 +33 1 4069 3160 +1 202 527 8135
thisted@worldbank.org jkwon@worldbank.org cmillward@worldbank.org hmoustafa@worldbank.org

Yasumitsu HIMENO Layali ABDEEN

Representative Senior Underwriter
Tokyo Middle East and North Africa
+81 3 3597 6633 +972 2 236 6571
yhimeno@worldbank.org labdeen@worldbank.org
www.miga.org miga-twitter miga-linkedin

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