MULTILATERAL INVESTMENT

GUARANTEE AGENCY
BY:
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 disputes
 Accessing funding
 Lowering borrowing rates
Contd…
 Increasing tenors
 Providing 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 Asia
2 projects in Asia (both in China)
Other projects in Latin America, Caribbean,
middle east & north African regions were also
guaranteed.
Project in INDIA
Project 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