Multilateral Investment Guaranty Agency (MIGA) seeks to boost projects in Haiti

MIGA: Supporting Investments to Promote Development

 The Multilateral Investment Guarantee Agency (MIGA) is the political risk insurance arm of the World Bank Group. Its mission is to promote foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people’s lives. The Agency’s operational strategy plays to its foremost strength in the marketplace—attracting investors and private insurers into difficult operating environments. Projects supported by MIGA guarantees create jobs; provide water, electricity, and other basic infrastructure; strengthen financial systems; generate tax revenues; transfer skills and technological know-how; and help countries tap natural resources in an environmentally sustainable way.

MIGA fulfills its mission by providing political risk insurance guarantees to private sector investors and lenders. MIGA’s guarantees protect investments against-non-commercial risks and can help investors obtain access to funding sources with improved financial terms and conditions. The Agency’s unique strength is derived from its standing as a member of the World Bank Group and structure as an international organization. Since MIGA’s inception in 1988, the Agency has issued more than $27 billion in political risk insurance for projects in a wide variety of sectors, covering all regions of the world.

Projects supported by MIGA create confidence among the international and domestic business communities, helping to attract even more investment.

How MIGA Can Help

MIGA insures projects against losses related to currency inconvertibility and transfer restriction, expropriation, war and civil disturbance, breach of contract, and non-honoring of sovereign financial obligations. Cross-border investments made by investors from a MIGA member country into a developing member country are eligible for MIGA’s insurance; most countries in the world (including Haiti) are MIGA members. Investments made by the diaspora are usually eligible for MIGA’s coverage. The Agency insures new investments as well as investments associated with the expansion, modernization, improvement, or enhancement of existing projects, or where the investor can demonstrate development benefits and a long-term commitment to the project. Acquisitions by new investors, including the privatization of state-owned enterprises, may also be eligible.

MIGA only supports investments that are developmentally sound and meet high social and environmental standards. The Agency offers extensive expertise in working with investors to ensure compliance to these standards.

Most sectors are eligible for MIGA guarantees, including (but not limited to) agribusiness, manufacturing, energy, tourism,  financial, transportation infrastructure, telecommunications, and mining.

For example, MIGA insures energy investments in all regions of the world. Geothermal energy in Kenya, wind energy in Nicaragua,  hydropower in Albania and Pakistan, and transmission lines in Brazil—these are all examples of MIGA-insured projects that demonstrate the Agency ‘s commitment to this critical sector.

MIGA’s work in infrastructure is an organizational priority. MIGA-insured roads in Costa Rica and the Dominican Republic, ports in Djibouti and Turkey, and an important bridge in post-conflict Cote d’Ivoire have all had a significant impact on these countries’ development.

MIGA has insured agribusiness projects in Ethiopia, the Russian Federation, the West Bank and Gaza, and Zambia and is particularly attentive to the significance of this sector for food security.

Small Investment Program

MIGA is keenly aware of the importance of small and medium enterprises in generating jobs and growth. MIGA’s Small Investment Program is designed to support investment in relatively small projects that can have a big impact on growth and development. The program offers a standardized package of risk coverages and a streamlined underwriting process for investments under $10 million.

For more information, visit www.miga.org