The World Bank Project Finance Guarantees世界银行项目融资与担保.ppt

January 25, 2001 Project Finance Guarantees, The World Bank Visit our website: /guarantees World Bank Guarantee Products: The Basics June 29-30, 2005 What are the guarantee products designed to do? A risk mitigation tool: Helps reduce fiscal burden Catalyzes private sector finance in support of developmental objectives Facilitates access to the international debt and capital markets on more favorable terms Leverages Bank resources The relevance in today’s investment climate Increased investor risk aversion continues Reduced number of strategic investors Rating downgrades Reduced availability of private PRI Requires Government demonstration of A track record which reduces Uncertainty in its market structures Uncertainty in its tariff framework With dominant public sector presence Honoring of policy contractual commitments Governance issues Principal types of guarantees Partial Risk (PRG) Generally for private sector projects Covers debt against specific sovereign obligations committed to project Structured to provide minimum coverage necessary to mobilize private financing Available in both IBRD and IDA countries Partial Credit (PCG) Generally for public sector projects and/or entities Covers debt service default for specified payments Alternative structures developed for different credits and market conditions Partial Risk Guarantees Rationale: Catalyzes private sector interest through political risk mitigation Purpose: Supports debt financing in the form of commercial debt or shareholder loans or provides cash flow support Guarantee coverage: Critical sovereign risks related to Government commitments under the relevant contractual agreements Modality: Greenfield projects, Privatizations, Concessions or other PPP structures Partial Risk Guarantees mitigate concerns related to government performance A Partial Risk Guarantee (PRG) can cover lenders in case the Government does not meet its commitments PRGs offer flexibility in the guarantee coverage tha