Overview

1MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

Outline

MIGA Overview

• Within the WBG

• History

• Products

• Development Impact

• Sustainability

2MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

WBG Institutions

IBRDInternational Bank for Reconstruction and Development

IDAInternational Development Association

MIGAMultilateral Investment

Guarantee Agency

Support countries’

economic and

institutional development

Governments of member

countries with annual per

capita income of less than

$1,025

- Technical Assistance

- Interest-Free Loans

- Policy Advice

Promote cross-border

investment and lending

Debt and equity investors in

member countries

- Political Risk Insurance

- Credit Enhancement

Est. 1945 Est. 1960

IFCInternational Finance Corporation

Promote private sector

development

Investors in member

countries

- Equity/Quasi-Equity

- Long-Term Loans

- Advisory Services

Est. 1956 Est. 1988

Role:

Clients:

Products:

Support countries’

economic and

institutional development

Governments of member

countries with annual per

capita income between

$1,025 and $6,055

- Technical Assistance

- Loans

- Policy Advice

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

3MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

MIGA History: Dr. Ibrahim Shihata – Founder

“When I joined the Bank on August 1, 1983, as

general counsel, I was convinced that the need for an

international agency to encourage foreign investment

was greater than ever. Such investment not only was

concentrated in a few countries; its volume had

started an historical decline. An agency supported by

the World Bank and receiving the full confidence of

both capital exporting and importing countries could,

in my view at the time, reverse that trend to the

benefit of both sides. In particular, it could play a

significant role by rebuilding confidence in investing in

developing countries and by breaking the

psychological barrier that magnified political risks…

The basic objective of the newly projected agency, to

which I gave the name of the Multilateral Investment

Guarantee Agency was described in terms of

encouraging and promoting the flow of private

resources among members for productive purposes.”

4MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

MIGA’s Products

Political Risk Insurance

(PRI)

Non-honoring (Credit

Enhancement - NHFO)

Transfer restriction & currency inconvertibility

Expropriation

War & civil disturbance

Breach of contract

Non-honoring of a sovereign financial obligation

Non-honoring of a sovereign financial obligation –sub-sovereign

Non-honoring of a financial obligation of SOE

MIGA’s mandate is to facilitate FDI into developing countries As WBG’s provider of investment insurance, MIGA secures

investment flows against political and sovereign risks

5MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

MIGA’s Value Added

Strong pre-claim management

Highly rated

Financially stable

Strong Risk Appetite

Environmental and social risk mitigation

• Management of risks at pre-claim level (100+ pre- claims among over 800 projects. Two claims paid for expropriation, six for war and civil disturbance)

• Leveraging the World Bank network

• Highly rated multilateral by Basel Committee• Reduce risk weighting and capital provisioning

• Strong capital base• Mobilize reinsurance capacity

• Operates in challenging markets• Longer tenors (15 years)

• Best practices in environmental and social standards

6MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

NHFO Issued by FY

PRI Issued by FY

MIGA’s Growth 1990 – 2016

NHSFOintroducedin 2009

(New Guarantees Issued, $ million, FY)

AgencyEstablishedin 1988

Aspire to grow new guarantees issued by 50% from FY13 to FY17

NH for SOEobligorsIntroduced in 2013

Decoupling of debt and equity introduced in 2010

7MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

NHFO Portfolio

PRI Portfolio

MIGA’s Portfolio 1990 – 2016

(Gross Exposure, $ million, FY)

June 30, 2016Gross Exposure: $14.2BPRI: $8.8B; NH: $5.4B

NHSFOintroducedin 2009

AgencyEstablishedin 1988

NH for SOEobligorsIntroduced in 2013

Decoupling of debt and equity introduced in 2010

MIGA has continued to increase its development impact through its stimulation of private investment

SOURCE: MIGA development impact estimates

USD billions

177+ million

people provided access to transport

3+ million

metric tons of greenhouse gases avoided

50+ million

people provided access to power

Development impact (FY13-16)

Gross issuance Private co-financing

FY12 FY13 FY15FY11FY10FY06 FY07 FY08 FY09FY05FY04 FY14

1.1 1.2 1.3 1.42.1

1.4 1.52.8 3.2 2.82.72.1

5.65.9 9.98.83.4

FY16

4.3

27.31

No co-financing data available for FY04-FY10

SOURCE: MIGA development impact estimates

MIGA-supported projects have advanced the Sustainable Development Goals in powerful ways over the last 4 years

Core areas of development impact, FY13 - FY16Power50+ million people with access

Transport177+ million people with access

Clean Water18.2 million cubic meters flowing/yr

Greenhouse Gas Reduction

3+ million metric tns prevented

Access to Finance

Growing economies

Tax revenue

Jobs65k+ direct, full-time jobs created

$6.0 billion dollars in finance enabled for SMEs

$1.7 billion in locally procured goods

$1.8 billion in local taxes and fees

10MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

MonitoringInvestment Due Diligence

(Underwriting)

Management & Board Approvals

Environmental and Social DueDiligence

Disclosure period30/60 days

Contract Negotiation & Issuance

Engaging MIGA

Initial Management Approval

Contract Execution

Origination, Structuring, Application

Investments Due DiligenceContract

Negotiations

Technical and Commercial Due Diligence

Underwriting – Process and Timeline

11MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

E&S Sustainability Policy

Access to Information

Policy

8 Performance Standards

MIGA’S Sustainability Framework

Client

Responsibilities Implementation Tools

E&S Review Procedures

Guidance notesWBG EHS Guideline

Good Practice Material

12MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

Performance Standards

PS1: Assessment and

Management of E&S

Risks and Impacts

PS2: Labor and Working

Conditions

PS3: Resource Efficiency

and Pollution Prevention

PS4: Community Health,

Safety and Security

PS5: Land Acquisition

and Involuntary

Resettlement

PS6: Biodiversity

Conservation and

Sustainable Management

of Living Natural Resources

PS7: Indigenous Peoples PS8: Cultural Heritage

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