The World Bank Group.pptVIP

Multilateral Investment Guarantee Agency Founded in 1988, MIGA was established to promote foreign direct investments into developing countries by insuring investors lenders against political risk MIGA’s membership in the WBG enables the organization to intervene between investors host governments to resolve investment disputes To protect cross-border investments, it provides guarantees against non-commercial such as: - currency transfer restrictions - expropriation - war and civil disturbance - breach of contract - non-honoring of sovereign financial obligations MIGA Eligible Projects Green field investment New investment contributions associated with the expansion, modernization or financial restructuring of existing projects Acquisitions involving privatization of state firms Existing investments with high development impact when the investors demonstrates a long-term commitment to the project Eligible industries: - infrastructure - agri-business, manufacturing services - extractive industries - financial sector - small investment programs MIGA Benefits to Investors/Lenders Deterring harmful actions Resolving disputes Accessing funding Lowering borrowing costs Increasing tenors Proving extensive country knowledge Providing environmental and social expertise ICSID Established in 1966, ICSID is an autonomous international institution created in the Convention on the Settlement of Investment Disputes between States and Nationals of other States (the ICSID Convention or Washington Convention) Its primary purpose is to provide facilities for conciliation and arbitration of international investment disputes between member countries individual investors who qualify as nationals of other member countries; all of ICSID’s members are also members of the WB ICSID (cont.) The Convention sought to remove major impediments to the free international flow of private investment posed by non-commercial risks and the absence of speciali