MULTILATERAL INVESTMENT GUARANTEE AGENCYBY:PAYAL DESHMUKH

ABOUT MIGA….

•The Multilateral Investment Guarantee Agency (MIGA) is a member organization of the World Bank Group.

•MIGA was founded in 1988 with a capital base of $1 billion and is headquartered in Washington, DC.

CONTD…

•MIGA aims to encourage foreign direct investment by providing guarantees, known as political risk insurance.

•The organization's efforts protect investors against the risks of currency inconvertibility and transfer restriction, in addition to expropriation, war, civil disturbance, and terrorism.

•$22 billion in political risk insurance for over 600 projects in 100 developing countries.

•Membership in the World Bank Group enables the organization to intervene with host governments to resolve claims before they are filed.

MEMBERS

•Members of the MIGA include 175 members.

(25 & 150)

•Bhutan, Myanmar, Somalia etc are the non members.

GURANTEES BY MIGA

•Currency transfer restrictions •Expropriation •War and civil disturbance •Breach of contract •Non-honoring of sovereign financial

obligations 

• MIGA guarantees offer much more than just the assurance that losses will be recovered.

• MIGA insurance also benefits investors and lenders by:

Deterring harmful actions  Resolving disputesAccessing fundingLowering borrowing rates

Contd…Increasing tenorsProviding extensive country knowledge.Providing environmental and social expertise

Regional Overview

•MIGA works in all regions of the world and has provided investment guarantees for projects in more than 100 developing countries across a broad range of sectors.

•In fiscal year 2010; provided guarantee for

5 projects in Sub Saharan region.10 projects in Eastern & Central Asia2 projects in Asia (both in China)Other projects in Latin America,

Caribbean, middle east & north African regions were also guaranteed.

Project in INDIAProject Name Modicom Network Private Limited

Guarantee Holder Motorola, Inc.

Investor Country United States

Host Country India

Sector Telecommunications

Gross Exposure ($million) 9.6

Fiscal Year 1998

Status Not Active

Project Number 1910

Sectoral Overview

•MIGA guarantees cover projects in a broad range of sectors and subsectors, like

•Finance (52%)•Infrastructure(30%)•Agribusiness ,Manufacturing & services

(11%)•Oil, gas & mining etc.(7%)

 Policies Overview

•Disclosed in a transparent manner; •meet international best-practice

environmental and social standards. • Free of corruption. •Projects are expected to comply these

norms.•They are applicable local, national, and

international laws.

THANK YOU