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Eligibility: : To be eligible for MIGA's investment guarantees, the investor and host country must both be members of the agency, and the projects must be located in a developing member country. Corporations are eligible if they are incorporated in a member country or owned by nationals of a member country. Investments must be new, such as start- ups, expansions, or modernizations and have a three year minimum duration. Investments must support local development goals, be financially viable, and adhere to MIGA's environment, labour and corruption, guidelines. For more information on MIGA policies that must be adhered to, see: http://www.miga.org/screens/policies/policies.htm.
Types of Projects Funded: Most sectors are eligible for MIGA guarantees, including financial services, infrastructure, oil and gas, mining, telecommunications, services, agribusiness, and manufacturing. For examples of projects covered, see:
http://www.miga.org/screens/projects/projects.htm.
MIGA will not insure investments in gambling, tobacco production and processing, highly speculative investments, defense, illegal drugs, or the production of spirits.
Financial Instruments: Financial Instruments: Investors can choose any combination of the four types of coverage: Transfer Restriction, Expropriation, Breach of Contract, and War and Civil Disturbance. Equity investments can be covered up to 90 percent, and debt up to 95 percent, with coverage typically available for up to 15 years. MIGA can cover up to $USD 200 million per project, which may be supplemented through MIGA's coinsurance and reinsurance programs. Pricing is based on the type of project and any potential risks, and varies according to country and sector. MIGA can insure investments in projects with or without the involvement of another member of the World Bank Group.
Coinsurance Program: The Cooperative Underwriting Program (CUP) is a coinsurance program designed to encourage private insurers to cover political risk insurance for projects alongside MIGA. Under the CUP, MIGA is the insurer-of-record and issues a contract of guarantee for the amount of insurance requested by an investor, but retains only a portion of the amount for its own account.
Reinsurance Program: Reinsurance is obtained from both private and public insurers. MIGA can also provide reinsurance; however, the primary insurer's contract must contain certain provisions required by MIGA, such as those concerning MIGA's environmental and labor standards.
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How to Apply for Coverage:Investors need to submit a preliminary application for MIGA coverage before any investment commitments are made. Once the financing plans are established, a more definitive application will be required. T
Contact information for the Senior Management Team can be found at:
http://www.miga.org/screens/contacts/manage.htm.
To contact MIGA's network of field offices abroad, see:
http://www.miga.org/screens/contacts/overseas.htm.
Investors hoping to obtain MIGA coverage will have to submit a variety of information including: project description, financial information, business structure, market prospects, technical and environmental feasibility, investment and financing requirements, projected timetable, and evidence that the project fits into the host country's economic development strategy.
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