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Regional Activities Afghanistan, Ecuador, El Salvador, Indonesia, , Iran, in Indonesia, projects Salvador, nine El Ecuador, guaranteed MIGA Afghanistan, FY06, in Also flowstothe region. outstandingof exposure, wellabove theshare FDIthatof percent 16 forsub-Saharanaccount AfricainProjects 4). accountedpercentfor42 thegross ofportfolio (seeTable areas special and both of focus. Africa, In terms countries of gross sub-Saharan exposure, IDA-eligible in poorest) countries projects world’s 13 (the IDA-eligible in projects 21 supported also year,MIGA fiscal the During (SeeTable 3.) projects. 14 of total a to year,surging previous the from doubled almost agency the by guaranteed investments infrastructure of number The countries. conflict-affected South investments (see Box 1), and 10 were for projects in 23 areas: projectsforfrontierwere priority in markets, supported 15 South- MIGA’s on focused contracts the of guarantee in billion coveragecontractsfor66 supportinprojects. 41 of $1.3 Many issued MIGA 2006, fiscal In such countriesare infact in viable and profitable. investments private that markets the to signal important very a provides (PRI) insurance MIGA’s risk political cases, these In reality. the than worse be may specificcountriesafocuson perception wherethe risk of with groups, both by faced risks investmentcommercial non the mitigating by this does MIGA markets. frontier high-risk/low-income the into flows well FDI encouraging as as investment, South-South of trend supporting growing the while investors traditional re-engaging focused on multi-pronged, is challenge and goal MIGA’s thirdofall FDI going todeveloping countries. Investment landscape. from developing countries investment now accounts the for a on inroads notable making investors—is “South-South” force—so-called growing and new a emergenceof developed the time, same the and Atmarkets. stable more in invest to instead chose infrastructurethesector. cessions,especiallyin Investors troubled countries, by developed lower-than-expected less in earningsinvesting to and came it disputed when con At the same time, traditional investors continued to hedge limited. is capital availability where and risky be to perceived those particularly winners, been have countries developing all not But spreads. capitalatlower of availability the in increase an by fueled 2006, through continue to expected is trend upward standards.This investment global with countries developing in compliance better and conditions economic global healthy reflects recovery strong The Africa. in billion $29 of level record a reached and regions, all in Flowsincreased world. developing the reach to ever FDI of amount largest billion—the estimated$274 an to climbed economies emerging into (FDI) investment direct foreign of flows net when 2005, in optimism for reason had countries Developing Guarantees - -

tend to have a strong developmental impact—more impact—more developmental strong a have to tend projects—which small very of underwriting the makes also process faster The needs. their user-friendly to appropriate and more process the find underwriting who streamlined investors smaller among popular be to proving quickly is and year, fiscal this operational fully became SIP The 2). Box (see (SIP) Program Investment Small its under Leone Sierra Madagascar,and Malaysia, while replacements reflect contracts that are reissued reissued are that contracts portfolio, reflect the replacements of while reductions, runoffs by normal the are during Reductions offset expiries year. and were cancellations, business replacements, new to due exposure gross in increases that note to important is It FY06. in billion $3.3 to year fiscal last billion $3.1 exposure from rose, Net also 2). Figure (see million $268 of increase an billion, $5.362 at stood MIGA’sbusiness outstanding FY05, in exposure gross in decrease slight a Following Program. Underwriting Cooperative the since through eraged issued lev coverage amounts including billion, $16 total to MIGA’sinception bring results FY06 The region. America Latin the in product this in interest increasing an be to seems there and environment, the on impact positive a have that projects of types World these the supporting on Bank with closely collaborating been has agency brief in Operational Overview for more information.) The project (See coverage. guarantee in million $2 providing a at by project the Salvador.supporting El conversion is in MIGA landfill dioxide carbon the harmful less from to gases result methane of will Protocol, Kyoto the under sold be can which reductions, The emissions. gas that will sell carbon credits gained by reducing greenhouse project a for support first-time its announced also MIGA Mongolia. in project a for (see coverage time Leone Sierra and Tableyear,fiscal the During 3). first- provided also MIGA Iran, MIGA-supported for projects—Afghanistan, countries host under new were the deals signed SIP among received were that countries coverage Three SIP. in the million $24 worth contracts nine year, fiscal the During MIGA. for viable -

17 operational overview

18 operational overview Uruguay Nicaragua Jamaica Salvador El Salvador El Ecuador Republic Dominican Brazil Brazil Brazil Brazil Brazil Bolivia Ukraine Montenegro and Serbia FederationRussian Kazakhstan Bulgaria Herzegovina and Bosnia Pakistan Mongolia Indonesia Bangladesh Afghanistan EUROPE AND CENTRAL ASIA CENTRAL AND EUROPE PACIFIC THE AND ASIA CountryHost 2006 Fiscal in Supported Projects Table3 LATIN AMERICA AND THE CARIBBEAN THE LATINAND AMERICA Guarantee Holder Guarantee Abengoa, S.A.* Abengoa, S.A.* CorporaciónInterfin Scotia Nova of Bank The S.A. CorporaciónInterfin, Inc. Energie Biothermica CrownS.A. Prodenvases Panama Grodco S.C.A., Grodco Inc., Holding Odinsa (Cayman)Limited, Nordeste del Autopistas S.A., Internacional Ingeniería de Organización S.A. Industrial Dragados S.A. CYMI, Industriales Montajes Controly S.A. CYMI, Industriales Montajes Controly S.A. CYMI, Industriales Montajes Controly S.A. CYMI, Industriales Montajes Controly Peru Créditodel de Banco S.A.* Pol-Am-Pack Can-PackS.A., a.s. Raiffeisenbank Plc Corporation(UK) Mitsubishi SA, Générale Société Corporation,Gold Bema Company,B.V. Securitization Kazakh First Bank Investment Corporateand BV,Holdings Bulgaria AES Calyon AG Österreich Zentralbank Raiffeisen Switzerland Zurich, AG Bank Habib SCA Development and Investment Globull Ltd. Pte. Asia MTU Eaux des CompagnieGénérale TelecomOrascom S.A. DAGRIS, Investor CountryInvestor Austria Switzerland States United Singapore France of Republic Arab Egypt, France Spain CostaRica Canada CostaRica Canada Colombia Colombia,Panama Kingdom, United CaymanIslands, Colombia, Spain Spain Spain Spain Spain Peru Poland Republic Czech UK Canada,France, Netherlands France Netherlands, Sector Financial Financial Financial Services Infrastructure Infrastructure Agribusiness Infrastructure Financial Financial Financial Infrastructure Manufacturing Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure Financial Manufacturing Financial Mining Financial Infrastructure Amount $ M $ Amount (incl. CUP) (incl. 304.6 107.6 117.8 10.6 41.8 78.3 14.3 23.1 33.7 11.4 57.3 0.9 0.9 0.6 9.6 0.2 9.8 1.9 3.2 1.8 5.7 40 20 21 75 Interest of Area Priority/ IDA, F, CA F, IDA, F IDA, F NHC, IDA, SIP S-S, CA, IDA, INF S-S F, IDA, INF, SIP CA, F, NHC, IDA, INF S-S F, IDA, SIP S-S, INF SIP S-S, F, S-S F, INF, INF INF INF INF INF S-S F, IDA, S-S F INF 1 1 *

Uganda Leone Sierra Leone Sierra Nigeria Nigeria Nigeria Madagascar Madagascar Kenya Ghana Ghana FasoBurkina Angola

SUB-SAHARAN AFRICA SUB-SAHARAN Jordan Republic Islamic Iran, Republic Islamic Iran, AFRICA NORTH AND EAST MIDDLE CountryHost 2006 Fiscal in Supported Projects Table(cont’d) 3 Projects in priority areas and other areas of interest, as follows: CA: conflict-affected country; F: frontier country; IDA: IDA-eligible country; IDA-eligible IDA: country; frontier F: country; conflict-affected CA: follows: as interest, of areas other and areas priority in Projects Part 2 countries; and SIP: project underwritten under MIGA’sunder Program. underwritten Investment project Small SIP: and countries; 2 Part MIGA between investment South-South a to support S-S: country; African sub-Saharan SSA: country; host new NHC: infrastructure; INF: FY06. in supported” “project a Additional coverage provided to projects underwritten in previous fiscal years and counted as a “new project” in previous fiscal years and as and years fiscal previous in project” “new a as counted and years fiscal previous in underwritten projects to provided coverage Additional Environment S.A. Environment Suez Inc., Degremeont, Infilco CorporationCesurPackaging Co.,Ltd. CementhaiChemicals Limited, Public Petrochemical Corporation,National Itochu Holder Guarantee MILLco Limited* MILLco Limited International Sierra-ComLtd. CotecnaS.A.* SA Surveillance de Générale Société SGS CreditAB* Ericsson Ltd. International Louvre S.A. DAGRIS, Mr.Chatthe Limited, S. R. Africa South Corporationof Development Industrial Bhd. Sdn. Ikram Metro PROPARCO DAGRIS* Limited UK Equipment Barloworld Investor CountryInvestor France States, United Turkey Thailand Japan, Malaysia France France Kingdom United St. Kitts and Nevis and Kitts St. Kingdom United Switzerland Switzerland Sweden Mauritius France UK Africa, South Infrastructure Manufacturing Gas and Oil Sector Manufacturing Financial Manufacturing Services Agribusiness Services Infrastructure Services Services Infrastructure Tourism Agribusiness Agribusiness Amount $ M $ Amount (incl. CUP) (incl. 122.2 54.9 14.7 2.9 6.7 6.3 3.4 6.1 2.3 4.1 3.5 26 45 3 5 5 INF SIP S-S, S-S NHC, Interest of Area Priority/ S-S, SSA S-S, F, IDA, SSA F, IDA, SSA F, IDA, SSA CA, F, IDA, SSA S-S, CA, F, IDA, SSA SIP, CA, F, IDA, SSA SIP, S-S, CA, F, NHC, IDA, INF, SSA CA, F, IDA, SSA CA, F, IDA, SSA CA, F, IDA, INF, SSA SIP, S-S, F, IDA, SSA SIP, F, IDA, SSA S-S, F, IDA, 1

19 operational overview

20 operational overview highest number of guarantees, with 19 contracts in in contracts 19 with guarantees, of number highest second the generated Caribbean the and America Latin sectors. tourism and services, manufacturing, agribusiness, the in projects of comprised was region the in exposure gross MIGA’s of Two-thirds countries. of $81 growth and can have a significant impact totaling in developing projects sector million). Small investments are often an important driver service two and project infrastructure million $45 (one Nigeria in projects large several of exception the with terms, dollar in small were projects, 13 contracts of the of Most coverage. in support million $180 totaling in contracts 21 with tination, des guarantee top the number was of Africa terms sub-Saharan issued, In guarantees. the of value the and issued guarantees of number the perspectives: two from viewed be can 2006 fiscal in MIGA by issued guarantees Diversification Regional Diversification Portfolio investors. other to sold projects the or repaid being either loans the with risk, at longer no were assets insured underlying the because cancelled the were of projects percent 35 further A own. their on them bear to risks the with enough comfortable feel they until them lenders into markets they perceive as risky and supporting and investors foreign encouraging mandate: ultimate its achieving is MIGA that illustrate cancellations Such risk. political of perception their in improvements possible indicates which self-insurance, for preference clients’ to due were cancellations all of percent 41 2006, amount. fiscal In guaranteed the in or parameters investment the in either change a following underwriting new to due as ofJune30,2006 Figure 3GrossExposure, M $ Exposure Gross Portfolio, Guarantees 2 Figure as of June30, 2005 by Investor Country,Gross Exposure, Outstanding PortfolioDistribution, Figure x Egypt, ArabRep.of 90 92 94 96 98 00 02 03 04 05 06 01 90 92 94 96 98 00 02 03 04 05 06 01 as of June 30, 2006 30, June of as * Excludesotherincome. Cayman Islands Czech Republic as ofJune30,2006 Figure 3GrossExposure, 0.5 as ofJune30,2005 by InvestorCountry,GrossExposure, OutstandingPortfolioDistribution, Figure x 3.1 Egypt, ArabRep.of 00 02 03 04 05 06 90 92 94 96 98 01 Luxembourg Netherlands 90 92 94 96 98 00 02 03 04 05 06 01 Switzerland 132 * Excludesotherincome. 7.2 United Kingdom 5.4 Singapore 1,048 Mauritius Cayman Islands 9.9 Bermuda Germany Czech Republic 421 Belgium 0.5 others* Canada United States Austria 3.1 Poland France Luxembourg Netherlands South Africa Spain Japan 4.7 Switzerland 132 7.2 5.4 Singapore 1,048 Mauritius 9.9 Bermuda Germany 421 21.9 Belgium others* Canada Austria Poland France 24.1 Spain Japan 4.7 2,277 29.5 21.9 9.4 24.1 1.0 1.3 1.4 2,862 1.4 2,277 2.2 2.4 37.2 36.5 2.2 2.3 2.9 29.5 13.7 2.9 2.9 39.6 39.5 40.4 3.6 9.4 1.0 1.3 1.4 3.9 4.1 40.9 2,862 4.2 1.4 2.2 2.4 37.2 5.0 36.5 2.2 2.3 5.2 $ M The regional breakdown of of breakdown regional The 2.9 je'&&Zk[jehekdZ_d]$  Dej[0<_]kh[Ze[idejWZZkf  9ebecX_W"Im[Z[d  ?h[bWdZ"FWdWcW":[dcWha"  9eijWH_YW"CWbWoi_W"7kijhWb_W"  L_h]_d?ibWdZi"Ij$A_jjiD[l_i"  F[hk"Jkha[o"?dZ_W"Ibel[d_W"  J^W_bWdZ"?ihW[b"I[d[]Wb"Fehjk]Wb"  =h[[Y["?jWbo"DehmWo"Jkd_i_W"  13.7 2.9 2.9 39.6 5.9 39.5 40.4 11.4 3.6 3.9 4.1 40.9 4.2 4,365 5.0 23.5 5.2 $ M 14.2 8.4 je'&&Zk[jehekdZ_d]$  Dej[0<_]kh[Ze[idejWZZkf  9ebecX_W"Im[Z[d  ?h[bWdZ"FWdWcW":[dcWha"  9eijWH_YW"CWbWoi_W"7kijhWb_W"  L_h]_d?ibWdZi"Ij$A_jjiD[l_i"  F[hk"Jkha[o"?dZ_W"Ibel[d_W"  J^W_bWdZ"?ihW[b"I[d[]Wb"Fehjk]Wb"  =h[[Y["?jWbo"DehmWo"Jkd_i_W"  16.8 5.9 11.4 4,365 23.5 14.2 8.4 5,083 5,179 16.8 5,094 5,257 5,186 25.3 5,362 in Percent, 30.4 28.7 5,083 5,179 5,094 5,257 5,186 25.3 5,362 in Percent, 30.4 28.7 17.7 19.1 17.7 - 19.1 Investment income Premium andfeeincome vative instrument for encouraging capital flows into the into flows capital encouraging for instrument vative inno an as touted widely Kazakhstan, mortgage-backed in securitization landmark a was of One transactions FY06. these in region the in projects financial three just guaranteed agency the fact, In sector. financial the the past several years has been heavily weighted towards an represents This coverage. over which portfolio, ECA agency’s the in shift important the of majority the for million)—accounted ($117.8 Bulgaria in project power Maritza the and million) ($305 Russia in project mining MIGA during the fiscal year. Twomillion, by issued large coverage $599.8 of projects—the amount largest at Kupol the for but accounted projects, six of support issued in guarantees (10) of number of terms in destination Europe and Central Asia (ECA) was the third most popular coverage. MIGA in million $70.4 involved which Brazil, in lines transmission electricity of series a and markets), capital on 3 Box MIGA (see Republic million guarantee $108 a Dominican by supported the Project, Road were Toll projects the Among coverage. in million $242 totaling projects, 13 of support growth in this conflict-affected country.conflict-affected this in growth economic and encourage reconstruction the to in investment foreign created Facility, Guarantee Investment Afghanistan special the first through its Afghanistan in project guaranteed agency the that exposure. is note gross special region’s Of the of percent 80 nearly for accounting China, and $150 Bangladesh in projects structure totaling infra large year, two were these fiscal Among coverage. in the million during Pacific the Asia in and projects six for guarantees six provided MIGA deal. this for way the pave helped and precedent a set that Latvia in FY05 in transaction similar a insured MIGA 3). Box (see region Investment income Premium andfeeincome by Host Region, in Percent, in Region, Host by Distribution Portfolio Outstanding 3 Figure ceh[_d\ehcWj_ed$ ckbj_#YekdjhoW]h[[c[dji$H[\[hje<_dWdY_WbIjWj[c[dji\eh Dej[0F[hY[djW][iWZZkfjeceh[j^Wd'&&f[hY[djZk[je by HostRegion, Figure 4OutstandingPortfolioDistribution Reinsurance andCUP, CumulativeAmounts ofFacultative Figure 6 99 00 02 03 04 05 01 ceh[_d\ehcWj_ed$ ckbj_#YekdjhoW]h[[c[dji$H[\[hje<_dWdY_WbIjWj[c[dji\eh Dej[0F[hY[djW][iWZZkfjeceh[j^Wd'&&f[hY[djZk[je by HostRegion, Figure 4OutstandingPortfolioDistribution Reinsurance andCUP, CumulativeAmountsofFacultative Figure 6 115 99 00 02 03 04 05 01 278 115 372 278 516 525 372 in Percent,asofJune30,2006 661 661 668 661 5.3 516 525 7.9 in Percent,asofJune30,2006 CUP 661 661 668 661 13.8 5.3 $ M, 16.3 16.3 7.9 19.7 as of June 30, 2006 30, June of as 1,118 CUP 20.4 13.8 1,171 22.3 $ M, 16.3 16.3 as ofJune 30,2005 19.7 1,118 20.4 1,171 22.3 1,435 as ofJune30,2005 35.8 1,435 2,026 1,673 35.8 46.6 2,026 1,673 46.6 - - 10.1 11.5 13.8 10.1 96 97 98 99 00 02 03 04 05 01 18.6 11.5 13.8 96 97 98 99 00 02 03 04 05 01 18.6 16 24 16 9 Sub-SaharanAfrica 29 Global 9 NorthAfrica MiddleEastand 9 theCaribbean LatinAmericaand 13 Central Asia Europeand 20 thePacific Asiaand 20 24

34 9 Sub-SaharanAfrica 29 Global 9 NorthAfrica MiddleEastand 9 theCaribbean LatinAmerica and 13 Central Asia Europeand 20 thePacific Asiaand 20 46.0 41 34 45 46.0 41 45 65 71 74 65 77 71 74 77 84 84 Burundi Afghanistan Benin Lanka Sri Togo of Republic Congo,Democratic Madagascar Leone Sierra Albania Senegal Guinea Bolivia Angola KyrgyzRepublic Mali Côted’Ivoire Mongolia Mauritania Nepal FasoBurkina Uganda Indonesia Kenya Moldova Bangladesh PDR Lao Nicaragua Vietnam Pakistan Nigeria Ghana Herzegovina and Bosnia Mozambique Montenegro and Serbia CountriesIDA-eligible CountriesIDA-Eligible in MIGA’sPortfolio Guarantees Outstanding Table4 Total Azerbaijan Gross Exposure Gross 140.8 393.0 149.2 264.1 128.6 105.4 2,231 183.8 231.3 20.0 89.6 30.0 50.9 43.0 14.0 16.2 14.8 18.8 78.3 43.5 14.7 14.3 27.1 61.1 ($ M) ($ 13.5 51.3 0.9 0.9 0.9 6.0 8.6 8.4 1.0 3.3 1.7 1.7 % of Gross of % 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.9 0.4 4.9 0.8 0.8 2.0 0.2 0.2 2.6 2.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.8 0.5 1.0 0.1 0.1 3.4 4.3 7.3 1.7 42 1.5 1.1 Net Exposure Net 126.8 138.4 1,435 157.6 147.5 171.7 113.5 44.8 70.4 22.9 28.8 14.0 50.8 14.6 18.0 24.3 30.5 52.2 18.8 53.9 12.8 38.7 13.4 13.2 14.1 ($ M) ($ 12.1 0.9 0.8 0.8 0.8 8.6 3.0 7.5 1.7 1.7 5.1

% of Net of % 0.0 0.0 0.0 0.0 0.9 0.9 0.6 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.2 0.2 4.8 0.7 0.7 4.2 0.3 0.5 0.1 0.1 0.1 3.4 4.5 1.6 1.6 3.8 1.4 5.2 2.1 1.2 1.5 43

21 operational overview

22 operational overview projects were distributed roughly evenly across sectors. sectors. across evenly roughly distributed were projects The table). tele (see the Bangladesh in in sector communications investing firm Egyptian for an and Ghana, in including, countries, project housing a in investing firm Malaysian a example, middle-income com in from originated panies investments these of bulk The issued. guarantees of terms in million $389 worth were projects These countries. developing its fulfill among investments cross-border agency facilitating of mandate the helping projects, South-South for 15 guarantees issued MIGA year, for fiscal this priority In a MIGA. is investments South-South Supporting economy.global the in trend reflects the growing this weight of developing countries as size, of terms known in small still also are flows, South-South countries, developing between flows capital Although other before. ever into than countries flows developing FDI of proportion greater a tributing con are countries developing from companies report, 2006 the to According overseas. markets their expand to elsewhere and Africa, South Malaysia, India, China, Brazil, in companies many led have abroad opportunities and competitive; staying and viable remaining of challenges the and labor; low-cost markets new for search The advantages. parative com developing rapidly their of most the make to keen are that countries developing in companies for tunities oppor and challenges new introduced has Globalization Investment South-South Stimulating 1 Box Turkey Thailand Nevis and Kitts St. Africa South Singapore Poland Peru Mauritius Malaysia Israel Egypt CostaRica CostaRica Colombia Colombia/Panama CountryInvestor FY06 in Supported Projects South-South

lbl eeomn Finance Development Global Nicaragua Ecuador Republic Dominican CountryHost Iran Iran Uganda Kenya Indonesia Ukraine Bolivia Madagascar Ghana Leone Sierra Bangladesh Salvador El - - - - -

MIGA has been particularly active in facilitatingoutwardparticularlyin activebeen has MIGA investment. interregional more encourage to India and In FY06, MIGA held marketing roadshows in Russia, Brazil intermediaries. promotion investment for building investor supporting outreach programs, investment roadshows, by and capacity exchanges investment South South- stimulating in role a playing been also has MIGA countries. developing from originated year fiscal this program nine the under the guaranteed of projects investments—six South-South a of witnessed pattern also Program Investment Small MIGA’s Ecuador.in investing Colombianfirm a or Uganda, in graphic proximity, such as a South African firm investing geo close in or region same the in countries developing Half of the investor countries in this category invested in nology,brands,distributionand channels. were tech like overseas assets strategic and resources, access, market investing for reasons Their countries. developing in investments were date to firms overseas surveyed the by 251 made the of half than more that sponsored by MIGA and FIAS earlier this fiscal year found jointly firms Chinese 150 of survey A trends.investment overseas on seminars and conferences through munity com business the among awareness-raising and staff; China’s guarantees by missions marketing agency; Sinosure, credit export from staff of training includes that investmentmultifacetedChina,fromthrougha program Manufacturing Petrochemicals Agribusiness Agribusiness Services Manufacturing Finance Services Construction Telecommunications Telecommunications Finance Finance Manufacturing Transportation Sub-sector Gross Exposure ($ M) ($ Exposure Gross 107.6 122.2 78.3 14.3 33.7 0.9 0.2 3.0 6.7 5.0 6.3 3.4 1.9 2.3 3.2 - - - as ofJune30,2006 Figure 3GrossExposure, as ofJune30,2005 by InvestorCountry,GrossExposure, OutstandingPortfolioDistribution, Figure x Egypt, ArabRep.of 90 92 94 96 98 00 02 03 04 05 06 01 90 92 94 96 98 00 02 03 04 05 06 01 * Excludesotherincome. United Kingdom Cayman Islands Czech Republic 0.5 United States 3.1 Luxembourg Netherlands South Africa Switzerland 132 7.2 5.4 Singapore 1,048 Mauritius 9.9 Bermuda Germany 421 Belgium others* Canada Austria Poland France Spain Japan 4.7 21.9 24.1 2,277 29.5 9.4 1.0 1.3 1.4 2,862 1.4 2.2 2.4 37.2 36.5 2.2 2.3 2.9 h fsa ya’ atvte ipce te gnys out agency’s the Tablesee portfolio, sectoral 5. standing impacted activities year’s fiscal the Toguarantees. how of see distribution sectoral FY06 for in coverage for the Kupol gold mine in Russia. See Figure 4 million $305 coverage—including in million $426.8 totaling projects two for contracts seven with year fiscal the finished sector mining and gas, oil, the contrast, In nature. smaller a of often are sector this in investments nine for contracts projects, worth $64.7 manufacturing, million—a 17 reflection of the fact for that accounted agribusiness, construction and while projects, six and of tourism support the in million $103.8 in totaled (eight) sector services Contracts million. $238 totaling issued nine contracts in the financial sector,MIGA projects. with power coverage and water into investors ditional tra of return the encourage to as well as infrastructure, in investors South-South, or nontraditional, engage to efforts concerted and years few past the over sector the coverage of ($469 million). This reflects the amount strategic focus placed on the and (14), (25), issued supported projects contracts of number of terms guarantee in of activity, share lion’s the for accounted structure Diversification Sectoral polymers. high-demand of development its dependence on oil export revenues by focusing on the ease country the help to aims which project, rochemical new to pet a for coverage in part million $122 involved These tracts. large in con 10 the of due six for accounted which Iran, was in business This before. year the contract one con just from up projects, 10 three covering tracts for million $131 issued agency The year. fiscal previous the with compared FY06, in Africa North and East Middle the in significantly rose activity Guarantee 13.7 2.9 2.9 39.6 Percent of Gross Income, Gross of Percent Sector,by FY06, in Issued Guarantees 4 Figure 39.5 40.4 3.6 3.9 4.1 40.9 4.2 5.0 5.2 $ M je'&&Zk[jehekdZ_d]$  Dej[0<_]kh[Ze[idejWZZkf  9ebecX_W"Im[Z[d  ?h[bWdZ"FWdWcW":[dcWha"  9eijWH_YW"CWbWoi_W"7kijhWb_W"  L_h]_d?ibWdZi"Ij$A_jjiD[l_i"  F[hk"Jkha[o"?dZ_W"Ibel[d_W"  J^W_bWdZ"?ihW[b"I[d[]Wb"Fehjk]Wb"  =h[[Y["?jWbo"DehmWo"Jkd_i_W"  5.9 11.4 4,365 23.5 14.2 8.4 16.8 5,083 5,179 5,094 5,257 5,186 25.3 5,362 in Percent, 30.4 28.7 17.7 During the fiscal year, infra year, fiscal the During 19.1 as of June 30, 2006 30, June of as Investment income Premium andfeeincome ceh[_d\ehcWj_ed$ ckbj_#YekdjhoW]h[[c[dji$H[\[hje<_dWdY_WbIjWj[c[dji\eh Dej[0F[hY[djW][iWZZkfjeceh[j^Wd'&&f[hY[djZk[je by HostRegion, Figure 4OutstandingPortfolioDistribution Reinsurance andCUP, CumulativeAmountsofFacultative Figure 6 99 00 02 03 04 05 01 115 278 372 516 525 ------in Percent,asofJune30,2006 661 661 668 661 5.3 7.9 During the fiscal year, MIGA worked closely with the the with of monitoring and diligence closely due Worldon and Bank IFC worked MIGA year, fiscal the During Issues Social and Environmental year.consecutive third the for list 10 top the Herzegovina andSerbiaMontenegro—remainedon large one and Twocountries—Bosnia countries. post-conflict host to due FY06, investment. during Ghana and Mozambique were the coverage top African in million $536.3 to million $271 from exposure its doubled having Federation rose from number seven to first place overall, Russian The year’s. last to identical The almost is list 10 percent). top (40 total the of one-third than more for account Ukraine—together Serbia-Montenegro, Romania, Russia, Croatia, Bulgaria, Herzegovina, countries— and ECA Bosnia Seven exposure. outstanding agency’s the gross of half over just constitute 6) Table (see The 10 largest host country exposures in MIGA’s portfolio Diversification Country Host and Investor El Salvador, Egypt, Ghana, Indonesia, Madagascar, Madagascar, teams country Bank Indonesia, Russia—World and Mozambique, Ghana, Egypt, Salvador, El China, as countries—such many In Strategy discussions. (CAS) Assistance Country in part takes and Boards Sector the Bank World with and collaborates actively Bank MIGA IFC. World the with relationship working strengthening its on MIGA focus strategic Group, a Bank place to World continued the of part integral an As Cooperation Group Bank World issues. mental environ and social on guidance provide the to and needs provide exercises agency with an opportunity to be more attentive to client monitoring These shortfalls. compliance of event the in required actions corrective some Category B projects, offering recommendations on as spe well as projects, A Category environmental all visit and regularly cialists social agency’s The well. as implementation throughout compliance monitors now MIGA level, entry at standards MIGA’sand with policies it projects the supports. In addition of to ensuring that all projects comply impact environmental and social of monitoring continued MIGA’s saw also year fiscal The be will which 2007. year fiscal in completed policies, disclosure and social, mental, environ its of revision upcoming MIGA’s into feed will year.fiscal the efforts during These policies such own its on organizations society civil and clients, specialists, IFC with its consulted MIGA policies. disclosure reviewing and safeguard for process IFC’s the to par attention paying ticular developments, policy envi on social and and ronment Project, Pipeline Gas Africa West the of mission monitoring first the including projects, several CUP 13.8 $ M, 16.3 16.3 19.7 1,118 20.4 1,171 22.3 as ofJune30,2005 1,435 35.8 2,026 1,673 46.6 10.1 11.5 13.8 96 97 98 99 00 02 03 04 05 01 18.6 16 24 9 Sub-SaharanAfrica 29 Global 9 NorthAfrica MiddleEastand 9 the Caribbean LatinAmericaand 13 Central Asia Europeand 20 thePacific Asiaand 20 34 46.0 - - - - -

41 45

23 operational overview 65

71 74

77 84

24 operational overview finance the project. the finance past year, which used a private carbon offset fund to help this Salvador El in project management waste a ported sup has MIGA light, this In realized. are opportunities future that ensure to shared continuously is information pipeline offsets, finance carbon to potential from investors benefit allow would that date to deals not many has had MIGA Although synergies. potential on capi talize to Group Finance Carbon Bank’s World the with Carbon Fund make MIGA’sto contributions activities. important routinely counterparts Service, IFC and Advisory Bank World and Investment Foreign IFC’s the with being conducted by MIGA are being done in conjunction In projects of IFC. majority the assistance, technical the of area the from colleagues joint with of missions number a marketing conducted has MIGA And Russia. in project mining Kupol the as such year, past the over projects individual on support significant been also has requiring projects There investors. foreign in bring to assistance guarantee identify to MIGA with working are Note: Figures in table might not add up to 100 due to rounding. to due 100 to up add not might table in Figures Note: Total construction and manufacturing Agribusiness, Tourismservices and mining and gas Oil, Financial Infrastructure Percent, Sector,in by Exposure, Distribution, Gross Portfolio Outstanding Table5

MIGA has had active strategy discussions 100 FY00 29 10 34 14 13 - - gation products available. Staff have also held numerous miti risk various the market to and Group Bank World the within point entry single a clients present to projects infrastructure of number a on MIGA with closely worked department PFG Bank’s Department World the from (PFG) staff FY06, In Guarantee and Finance Project benefit from higher levels of foreign direct investment. direct foreign of levels higher from benefit that countries recipient the and countries, developing in projects eligible insure to capacity increased to access under surance accrue to MIGA’s clients, the investors who gain rein of required benefits as primary The Convention. insurers agency’s the other with cooperate (3) and to portfolio; the of profile risk provide; the can manage to MIGA (2) coverage of amount the to increase (1) reasons: main three for reinsurance uses MIGA Reinsurance markets. difficult in projects for solutions structure to try to teams country and clients with meetings joint 100 FY01 29 36 14 13 8 100 FY02 36 12 35 11 6 as of June 30, 2006 30, June of as 100 FY03 29 41 12 11 7 100 FY04 38 35 11 9 7

100 FY05 39 39 9 8 5 100 FY06 14 41 33 6 7 - -

r including: East, Middle the in one and America, Latin in two Asia, in two Africa, sub-Saharan in based are projects the of Four impressive. was sectors, and regions of terms in projects, SIP the of diversity The coverage risk SIP. the through political million—received $24 of value book total a investors. projects—with nine year, smaller fiscal the During among popular proved have time The simple underwriting process and reduced processing necessary the information. project of availability the on appli SIP depending a cation, receiving of weeks 6-8 within guarantees issue can MIGA that fact the is attractive particularly SIP Small Investment Program is $5 million. What makes the the under coverage guarantee of amount maximum The country. member developing a in SME, existing an into made or enterprise, medium-size or small a of lishment estab the to related are they if SIP the under coverage for eligible are sector non-financial the in Investments special this for insurance. risk (SIP)— political obtain to investors of faster group and easier Program it make to Investment designed Small program—the in guarantee special a establishing businesses by countries developing smaller and investors smaller of needs unique the to responded MIGA year, fiscal this During risk. noncommercial on taking by problem the compound to want not do and risk, credit financing because sponsors are nervous about perceived developing countries often find it more difficult to access in investments smaller relatively need that projects time, absorb to losses counterparts or navigate larger difficult investment terrain. their At the than same able less are who investors smaller for especially challenges, without not are territories uncharted in opportunities business, small a to profits big mean can abroad investing While MIGA. for developing countries. Supporting these firms is a priority many in entrepreneurship and innovation promote and technology; transfer companies; larger to act suppliers women; as empower employment; workers; generate low-skilled poor, They train reduction. poverty and growth economic of drivers critical sales—are annual in million $15 than less and employees 300 than less with Small and medium-size enterprises (SMEs)—businesses Businesses TargetsInitiative and New Investors Smaller 2 Box

munications equipment to SMEs in El Salvador El in SMEs to equipment munications leases tractors, commercial real estate, and telecom a $3.15 million guarantee to support a company that

- - - to projects overseas in exchange for greater market market greater for diversification. and expansion exchange in overseas technologies projects to state-of-the-art their apply to eager advances, are technological of forefront the at are whom their of many for investors, foreign These investors abroad. small investments to mind important of peace increasingly give the and countries, developing in SMEs for financing to access improve initiatives Such annual in million sales. $100 or assets in million $50 than less have that companies for fee application the waives MIGA because benefit, extra an get employees 375 than the of size investing company. the However, of smaller investors with less terms in investors package restrict the not does world, developing the to in SMEs investors in smaller invest encourage to tailored Although countries. developing from came investments nine the of six investors: small from investments South-South of number expected than higher a seen also has SIP The r r r

Leone Sierra in network IP voice-over and access wireless broadband state-of-the-art line, fixed a of lishment bags propylene plant in Iran that will produce and export large poly Oil and Cotton for Development Project Afghanistan New $. mlin urne t spot h estab the support to guarantee million $3.4 a manufacturing a support to guarantee million $5 the a support to guarantee million $0.9 a - -

25 operational overview

26 operational overview with a public partner. Together with the facultative rein facultative the reinsured Togetherpartner. with public ever a with has MIGA amount largest the senting repre Russia, in rein project mining Kupol facultative the Canada for in surance million $107 Development with MIGA Export provided year, the during Also partners. its and MIGA of requirements these institutions on transactions that meet the eligibility with arrangements underwriting cooperative or surance agreements will allow MIGA to enter into facultative rein Credit Export These Thailand. of Bank Export-Import Agency,with and Belgian the ONDD, with Credit, Export and Investment of CorporationInsurance Islamic the for the with agreements signed MIGA 2006, fiscal During agreements. reinsurance treaty quota-share through reinsurers treaty its it to underwrites guarantee of contracts the to of related portion liability a contingent cedes MIGA Ltd. Re XL and Ltd. Co. Insurance Bermuda ACE partners, reinsurance treaty its with work to continues It partners. insurance private 10 than more with projects, MIGA leveraged for capacity thus additional and agreements, reinsurance ultative Partners reinsurance. facultative through million $940 of total a placed MIGA 2006, fiscal During reinsured. was $2.1 billion $5.362 2006, of exposure fiscal gross total MIGA’s of of billion end the At procedures. and recovery handling claims and resolution, dispute analysis, risk in MIGA’sexpertise from benefit insurers These do. underwrite frontier to in transactions with insurers longer tenors than they would normally other projects enables in also It markets. participate to insurers other encourages involvement MIGA’s effect, mitigation risk MIGA’sits of Because projects. large support to capacity increase insurers other with arrangements Reinsurance Ten Largest Outstanding Country Exposures in MIGA Portfolio, MIGA Tenin CountryExposures Outstanding Largest Table6 Total Croatia Ukraine Ghana Brazil Herzegovina and Bosnia Romania Mozambique Montenegro and Serbia Bulgaria FederationRussian CountryHost During fiscal 2006, MIGA entered into fac into entered MIGA 2006, fiscal During Gross Exposure ($ M) ($ Exposure Gross 2,833.6 393.0 261.6 264.1 396.3 176.2 163.8 227.1 183.8 536.3 231.3 - - - - - % of Gross of % partners. insurance to MIGA by ceded be to ever terms absolute project ($84million),thiswasalsothelargestamountin same the on partners private to ceded amounts surance as of June 30, 2006 30, June of as Exposure, Country,Gross of Percent in Investor by Distribution, Portfolio Outstanding 5 Figure as ofJune30,2006 Figure 3GrossExposure, as ofJune30,2005 by InvestorCountry,GrossExposure, OutstandingPortfolioDistribution, Figure x Egypt, ArabRep.of 90 92 94 96 98 00 02 03 04 05 06 01 90 92 94 96 98 00 02 03 04 05 06 01 10.0 52.8 * Excludesotherincome. 4.9 4.9 4.2 United Kingdom 7.4 3.4 4.3 7.3 3.3 3.1 Cayman Islands Czech Republic as of June 30, 2006 30, June of as 0.5 United States 3.1 Luxembourg Netherlands South Africa Switzerland 132 7.2 5.4 Singapore 1,048 Mauritius 9.9 Bermuda Germany 421 Belgium others* Canada Austria Poland France Spain Japan 4.7 21.9 24.1 Net Exposure ($ M) ($ Exposure Net 2,277 29.5 9.4 1.0 1.3 1.4 2,862 1.4 2.4 2.2 37.2 36.5 2.3 2.2 2.9 13.7 2.9 2.9 39.6 1,372.7 39.5 40.4 3.6 3.9 4.1 40.9 210.9 108.3 139.8 138.4 121.4 157.6 4.2 147.5 112.7 171.7 64.5 5.0 5.2 $ M  =h[[Y["?jWbo"DehmWo"Jkd_i_W"  je'&&Zk[jehekdZ_d]$  Dej[0<_]kh[Ze[idejWZZkf  9ebecX_W"Im[Z[d  ?h[bWdZ"FWdWcW":[dcWha"  9eijWH_YW"CWbWoi_W"7kijhWb_W"  L_h]_d?ibWdZi"Ij$A_jjiD[l_i"  F[hk"Jkha[o"?dZ_W"Ibel[d_W"  J^W_bWdZ"?ihW[b"I[d[]Wb"Fehjk]Wb"  5.9 11.4 4,365 23.5 14.2 8.4 16.8 5,083 5,179 5,094 5,257 5,186 25.3 5,362 in Percent, 30.4 28.7 % of Net of % 41.5 6.4 2.0 4.8 4.2 4.2 3.4 4.5 5.2 3.7 3.3 17.7 19.1 Investment income Premium andfeeincome ceh[_d\ehcWj_ed$ ckbj_#YekdjhoW]h[[c[dji$H[\[hje<_dWdY_WbIjWj[c[dji\eh Dej[0F[hY[djW][iWZZkfjeceh[j^Wd'&&f[hY[djZk[je by HostRegion, Figure 4OutstandingPortfolioDistribution Reinsurance andCUP, CumulativeAmountsofFacultative Figure 6 99 00 02 03 04 05 01 115 278

372 516

525

in Percent,asofJune30,2006 661 661 668 661 5.3 7.9 CUP 13.8 $ M, 16.3 16.3 19.7 1,118 20.4 1,171 22.3 as ofJune30,2005 1,435 35.8 2,026 1,673 46.6 10.1 11.5 13.8 96 97 98 99 00 02 03 04 05 01 18.6 16 24 9 Sub-SaharanAfrica 29 Global 9 NorthAfrica MiddleEastand 9 the Caribbean LatinAmericaand 13 Central Asia Europeand 20 thePacific Asiaand 20 34 46.0 41 45 65 71 74 77 84 MIGA’s latest pioneering deal shows the market how how market the shows deal pioneering latest MIGA’s restriction and expropriation for a period up to five years. transfer currency of risks the against portfolio mortgage the by generated payments interest and principal the of portion a insuring by transaction this supported MIGA securities. asset-backed in investors local beyond in base investor the expanding by Kazakhstan markets capital the stimulate to this expected in is project involvement MIGA’s transparent. and petitive com more Kazakhstan in market mortgage the making lending, mortgage TuranAlemits Bank expand enable to will securities mortgage-backed these buy who investors from ABN raised funds by The Netherlands. sponsored the of Bank conduit Amro vehicle multi-seller a purpose by funded special Company—a Securitization mortgage Kazakh First by the TuranAlem, Bank of Ipoteka, subsidiary lending BTA from resi of mortgages portfolio a dential of purchase the involves deal The of securitization true-sale mortgages. first country’s deal—the groundbreaking a as press financial the by hailed been Company,B.V., has Securitization Kazakh First the with private contract of guarantee million $75 appetites agency’s The market investors. risk-return emerging the of and needs economies, investment the meet to markets capital the of resources vast the harnessing in MIGA made significant inroads during the last fiscal year Needs Investment Market Emerging Meet CapitalMarkets 3 Box

- - The Dominican Republic bond issue ultimately achieved infra an finance to project. structure placement) private a transaction (through markets capital a insurance cover MIGA to used that been time has first the is This contract. of breach and disturbance, civil and war expropriation, for up to 20 years $162 against the risks of transfer restriction, is and coverage MIGA’s in project. the for issue investment bond million equity million $14 their for investors of group a to insurance $108 risk political in million provided has MIGA Republic. Dominican the in project road toll Por.a C. A., Nordeste del Autopistas is FY06 during support MIGA with sources capital private Another emerging market project that raised funds from needs. funding their match to financing of forms new sophisticated access can borrowers local similar projects. similar in more and more participating by countries developing for options financing to access improve to aims MIGA more for information). brief project (see life average 13-year a have and 2026, in mature notes The oversubscribed. percent 40 eventually were and investors from demand strong Stanley—drew Morgan by launched and Nordeste del Autopistas by notes—issued secured senior The (B-). country the for ceiling sovereign the above (B) rating a -

27 operational overview

28 operational overview nations of the Pacific for several years, including most most including years, several for Pacific the of nations island the with working been has MIGA context, this In these to investors locations. foreign attract will that information advice and provide to countries developing small of member in assistance capacity the enhance to working is agency the countries, intermediaries technical promotion provide investment to to objective strategic MIGA’s of part As investment. direct foreign attract to not compete other each to with also but countries, developed with only well-equipped be these to that need recognizes countries MIGA competitiveness. tional interna achieve to countries these for difficult it make which markets, domestic small and resources, limited economies, undiversified by also but disasters, natural to vulnerability and size their by just not compounded are countries developing small by faced challenges The geographicalfiscalyear.nextregions,thecontinuewill in other to scheme the extending of concept, viability the the including into Research countries. participating to coverage insurance competitive offer would facility the scale, of economies and risks of pooling the of Because parametrictriggers.dependingonpayments claims with periods,returnspecific polices of eventsnaturaladverse against insurance pool purchasing to by risks countries disaster natural member allow would scheme The Caribbean risk-sharingcountries,a formofthe ininsurance. for scheme insurance disaster Bank natural World a the on with working now is MIGA disasters. vulnerable and states in their programssmall to manage themany impacts of natural supporting in role unique a play could MIGA that and countries, tsunami-affected areas. It soon became clear that the need extended beyond governments affectedinvestmentinto direct foreign to attract to wanting assistance technical of provision the through and countries,those in commitment a make to both through support for foreign direct investors wanting MIGA began looking into ways to help affected countries, Asia, in disaster tsunami 2004 December the Following countries. these in developmentsustainable promote that projects supporting to committed is agency the and 30 members, almost to home MIGA are countries are these of Thirty-threepeople. million category states small the to and belonging Countries poor stark. are needs very development their are others wealthy, quite are countries these of some While less. or million 1.5 of populations have many and landlocked, are some or islands, of groups islands of are group countries—some diverse developing a to sovereign refers states” “small term The States Small in Investments Supporting 4 Box

- information. In fiscal year 2006, MIGA collaborated collaborated include MIGA to Service Advisory Investment Foreign 2006, the with year fiscal In information. Gateway online on assistance Development and advice Foundation—providing the by Development Program—sponsored Information Investor the under recently throughout the world. the throughout states small in opportunities investment climates promote and investment improve to to efforts its committed is continuing and countries, foreign in telecommunications companies covering Mauritian by guarantees made various investments issued also has MIGA CapeVerdeanlargest island. the Santiago, of island the in aggregates gravel and sand quarry and the installation of a crushing plant to produce basalt a of development the for coverage in million $2.4 totaling contracts guarantee four issued MIGA 1998, In $18.3 currently million. is project the for exposure net MIGA’s Swaziland. in project first MIGA’s was and This transmission Swaziland. Africa, South electricity Mozambique, of interconnecting lines operation and con the involving struction project a for million $69.4 totaling guarantees two issued MIGA 2000, year the in Earlier, Jamaica. in contracts 11 Toissued has MIGA date, million. $362 of revenues net in increase cumulative a to leading years, eight next the for annually percent five by revenues increase to expected is expansion The region. the of hub transshipment the as itself position also but competitive, remain only not Authority Port the help will Jamaica. The in expansion Terminal and Container modernization of Port the Kingston terminal the in investment its for Canada of Scotia Nova of Bank the to guarantee In addition, in this fiscal year MIGA issued a $41.8 million Enterprise Program. Benchmarking MIGA’s in the participating in also states are small Caribbean of Performance number IPA A Survey. the in Assessment region the of countries nine - spective of private investors’ information requirements per requirements information the investors’ from private of spective reviewed was website IPA’s each First, components: two of consists review performance The standards. best-practice industry to and IPAs other of that to relative performance its of agency participating each advise to used being are study this of results the and process, investors selection site the to during critical is information investment-related how they handle investor inquiries. Access to good-quality and available information investor make IPAs effectively how examines 2006 Review Performance IPA MIGA The from world. the around economies agencies transition and developing promotion investment 114 of tiveness effec the of study benchmarking performance a ducted con MIGA 2005, in completed study pilot a on Based Review Performance IPA 2006 community.development broader the with but Group, Bank the within just not nerships, part on based are projects TAMIGA’s of majority vast the for The plan. assistance technical tailored basis a of development the forms that assessment institu needs an tional with begin typically engagements Country (IPAs). agencies promotion investment these of capacity institutional the builds that assistance based organizations with the global experience to few the provide of broad- one as is MIGA well started. get as businesses helping selection, site with associated costs action trans the reducing of goal the with infor advice, and with mation investors intermediaries provide to capacity promotion their develop investment helps MIGA relationships. sourcing and supply through economy domestic the to investments anchor an help as and destination; make attractiveness investment to country’s a increase governments to changes encourage country; a within existing operating help while encountered locations; problems solve investors specific to They investors jobs. attract creating and of growth goal the economic with generating activities, FDI of promote combination a through intermediaries promotion Investment countries. IDA-eligible 16 in mented imple TAinitiatives.were Twentythe projects of global and regional several with along countries, 28 in assistance(TA)projects technical contained 45 agency’sactive portfolio strong—the be MIGA’sto for continued demand assistanceservices 2006, technical fiscal In needs. investor to effectively respond to ability their improve to investment promoting in involved intermediaries other and governments help assistanceto technical provides MIGA TechnicalAssistance ------basis of the quality of its responses. The agencies were were agencies The responses. its of quality the of basis the on assessed was IPA the and IPA, each to submitted were enquiries investor anonymous which in approach, shopper” “mystery a used study The enquiries. investor study the Second, undertook a survey of each IPA’s tool. ability to handle specific marketing a as site the the and of use website, the on infor available of content and relevance and mation quality the etc.), use, of design (ease and architecture website covered assessments The sites. investment potential as locations screening in an integrated, multi-country database linked of to individual development the facilitate will MIGA effort. opment devel software the launch and requirements technology information discuss to as well as system, the of tenance main and development the on stakeholders key among agreement reach to Zambia and Tunisia, Africa, South Nigeria, Botswana, in held workshops and meetings of The project design phase began in early FY06 with a series services. information through MIGA’sinvestor through society as well as website, NEPAD civil the and community business the to tenders relevant and projects priority on infor these on updated mation documents disseminate (2) and and projects; information regional to key Africa in share partners securely development allow (1) system will reporting that and management project online an implement and develop to Secretariat NEPAD the with working is MIGA Development. African for New Partnership the NEPAD, and MIGA between initiative nation dissemi information new a of launch the saw year This NEPAD and MIGA levels. best-practice as well as averages, regional performance and global own against its benchmarked on report tailored specifically a and report global the of copy a received agency pating partici Each benchmarks. best-practice as IPAs region country/ developed selected 12 reviewed also study The up. follow and response, final the of content and quality the response, interim/holding the handled, was inquiry the well inquiry,how the to IPA’sresponsiveness the IPA, the contact to was it easy how on judged then ------

29 operational overview

30 operational overview campaign featuring extensive outreach activities. outreach extensive featuring campaign promotional territory-targeted and sector- proactive, a of MIGA is overseeing the preparation and implementation develop a more positive perception of Serbia. To that end, and assets country’s the on focus to needed is building image- extensive and effective investors, potential many by held Serbia of perception negative current the Given investors. foreign to suppliers approved become to SMEs Serbian for prospects of enhancement the and of development; area supplier and development the zone industrial in schemes pilot more of of development the attraction FDI; the through disparities economic of reduction the location; investment competitive a as Serbia of promotion effective the SIEPA; within capacity project objectives include the development of institutional agency—is the main beneficiary of this program. promotion Specific investment and trade national SIEPA—the the development. private-sector sustainable term long- underpinning creating and process economy, accession Union European market a to transition country’s the accelerating thereby Serbia, into flows FDI increase to is objective overall program’s The promotion activities. investment and capacity-building of a range implementing with charged been for year has MIGA Agency project, two-and-a-half the European Under the (EAR). by (SIPP) Reconstruction funded Program initiative an Promotion is Investment Serbia The Program Promotion Investment Serbia continent. the across programs the enhance preparation and implementation of to regional projects and System Management Project NEPAD the by offered functionality the on building partners, its with These cooperation in implemented be will activities. initiatives new facilitation for and programs coordination project capacity-building help to appropriate NEPAD define with it working is MIGA Concurrently, imple donors. and other agencies menting as well as African Group, Bank World the the Africa, communities, Southern of Bank Development the Bank, Development economic including regional partners, the development various the information-sharing among facilitate to 2006 of summer the in system new this out roll to began NEPAD and MIGA research and sectors. of number a across projects capacity-building, facilitation, regional incorporate to expand soon will but projects, infra on structure initially focuses effort this of phase pilot The insti financial agencies. implementing project and tutions, international communities, economic regional the by updated being of capable portals project - - - 1 Western Balkans. Marketing activities are designed and and designed are activities Marketing Balkans. Western of number European target markets with strong business ties to the limited a on select to geared predominantly are and focus sectors, industry activities Outreach investors. facilitate foreign prospective and through with engagement Balkans direct the market, in projects identify, investment The concrete to region. seeks entire the program for promotion approach is investment proactive to EIOP and the innovative team, an MIGA small implementing a of lead the Under Vienna. of out operates EIOP The investors. European to tunities oppor investment direct foreign market effectively more Balkans Western the help to designed platform regional initiative in 2004, EIOP Phase 1 was set up by MIGA as a the to flows FDI Western Balkans region. First launched promote as a two-year pilot government—to Austrian the by is initiative—supported (EIOP) umbrella regional Program MIGA’s Outreach Investor European The Program Outreach Investor European advanced level of interest. of level advanced an expressed having companies 24 approximately with EIOP, under serviced being currently is of companies pipeline 48 project A interest. investor a of level presenting year, serious this far so EIOP by facilitated been have visits site Fifteen sectors. products consumer and processing, metal packaging, food, projected construction, the in and jobs new place in Bosnia and Herzegovina, Croatia, and Serbia, are 500 than of investments more of total to announce their decisions soon, leading to a combined expected companies four another with investors, two by and Slovenia, Greece, Switzerland. Results include investment announcements Germany, Austria, in mented imple were activities outreach investor year, fiscal This region. the in stability political improved to contributing and opportunities employment local enhancing mately ulti efforts, development sector private local strengthen and complement significantly efforts EIOP’s The region. the in organizations bilateral and international other and MIGA by supported programs assistance technical with countries, ficiary bene EIOP the in partners other and agencies motion pro investment with cooperation close in implemented

The EIOP currently covers Albania, Bosnia and Herzegovina, and Bosnia Albania, covers currently EIOP The Kosovo). (including Montenegro and Serbia Macedonia, Croatia,FYR e 1 and are coordinated and closely linked closely and coordinated are and 29 million. These investments, to take take to investments, These million. 29 - - - - - Figure 3GrossExposure, as ofJune30,2006 as ofJune30,2005 by InvestorCountry,GrossExposure, OutstandingPortfolioDistribution, Figure x Egypt, ArabRep.of 90 92 94 96 98 00 02 03 04 05 06 01 90 92 94 96 98 00 02 03 04 05 06 01 * Excludesotherincome. United Kingdom Cayman Islands Czech Republic 0.5 United States 3.1 Luxembourg Netherlands South Africa Switzerland 132 7.2 5.4 Singapore 1,048 Mauritius 9.9 Bermuda Germany 421 Belgium others* Canada Austria Poland France Spain Japan 4.7 21.9 24.1 2,277 29.5 9.4 1.0 1.3 1.4 2,862 1.4 2.2 2.4 37.2 36.5 2.2 2.3 2.9 13.7 2.9 2.9 39.6 39.5 40.4 3.6 3.9 4.1 40.9 4.2 5.0 5.2 $ M je'&&Zk[jehekdZ_d]$  Dej[0<_]kh[Ze[idejWZZkf  9ebecX_W"Im[Z[d  ?h[bWdZ"FWdWcW":[dcWha"  9eijWH_YW"CWbWoi_W"7kijhWb_W"  L_h]_d?ibWdZi"Ij$A_jjiD[l_i"  F[hk"Jkha[o"?dZ_W"Ibel[d_W"  J^W_bWdZ"?ihW[b"I[d[]Wb"Fehjk]Wb"  =h[[Y["?jWbo"DehmWo"Jkd_i_W"  5.9 11.4 4,365 23.5 14.2 8.4 16.8 5,083 5,179 5,094 their investment promotion efforts by negotiating negotiating by efforts promotion investment streamline to their required sources intelligence to access by and investment generation. MIGA’s interventions efforts facilitate IPIs’ TA targeting of areas the in in-country transfers knowledge enhancing its effort an complement launched to MIGA year, This efforts. of cation dupli and costs reduces that way a in sources intel ligence to access facilitate to aims MIGA and investors, promotion retain investment and attract to efforts their in (IPIs) most intermediaries by investor needed and market intelligence of set common basic a is There Facilitation Research Investor clients. our by used and useful is that data generating is it that ensure to and months, past the revised to reflect the experiences in implementing it over and updated being is methodology Investment benchmarking The the as such tools, Climate Assessments and the Doing Business indicators. dialogue policy and the analytic Group’s with Bank World the complement to seeks coordinated closely Worldthe of work climate investment and IFC, and Bank is program MIGA’s two examined that report countries. Asian six in sectors industry 2003 a Asia,” “Snapshot MIGA’sof offshoot an is program The agribusiness. and examining competitiveness in tourism, offshore services, the Caribbean and Central America is currently underway, in countries four of analysis Commonwealth benchmarking a Secretariat, the preparation with under collaboration In 5). now Box (see report a and snapshot governments, combined client the of each to distributed analyses country with completed, also was and sectors, six countries 11 covering study, benchmarking Africa wide-ranging The coast. the on locations better-known to cost in up measures it how of indication an gives and sectors, key in China of region western underdeveloped the of competitiveness the highlights report The cation. Development publi Project Sichuan” “Snapshot the China produced Facility, MIGA IFC’s the with Working well. as data the from benefit and intermediaries Policymakers promotion investment own. their on analysis detailed the while saving valuable time and money needed to conduct research, selection site their organize to tool key a with investors provides that opportunities and conditions of snapshot practical a is sector.result by end tiveness The competi country’s a of analysis comparative a provides program The investment. foreign for locations and sites gauges a country’s that ability to compete tool with other potential innovative an (EBP), Program Benchmarking MIGA’sunder released publication new a and Enterprise undertaken were studies year,two fiscal the during Also Program Benchmarking Enterprise 5,257 5,186 25.3 5,362 in Percent, 30.4 28.7 17.7 19.1 Investment income Premium andfeeincome ceh[_d\ehcWj_ed$ ckbj_#YekdjhoW]h[[c[dji$H[\[hje<_dWdY_WbIjWj[c[dji\eh Dej[0F[hY[djW][iWZZkfjeceh[j^Wd'&&f[hY[djZk[je by HostRegion, Figure 4OutstandingPortfolioDistribution Reinsurance andCUP, CumulativeAmountsofFacultative Figure 6 99 00 02 03 04 05 01 115 278 372 516 525 in Percent,asofJune30,2006 661 661 668 661 5.3 7.9 CUP 13.8 $ M, 16.3 16.3 19.7 1,118 20.4 1,171 22.3 as ofJune30,2005 - - - - 1,435 35.8 in Mozambique, Senegal, and Sierra Leone. Sierra and Senegal, Mozambique, in initially programs, assistance technical MIGA ongoing in Cameroon.and assistance provide will ICIEC addition, In in starting countries, of range a in assessments East Africa. Middle Specifically, ICIEC sub-Saharan will the support and MIGA in Asia, of undertaking needs South Africa, countries North and member ICIEC the in intermediaries promotion investment benefit to tiative ini joint a of development the explore to (ICIEC) Credit Export and Investment Islamic of Insurance the the for Corporation with discussions launched recently MIGA Regional Philippines. the in agencies promotion investment subnational and national targeting course, the of version pilot a plan to Management of Institute Asian the with cooperation in working is MIGA available. now is course the of version online self-paced a Institute, Bank World the by Supported promotion. investment and targeting investor most- with the dealing Toolkit, of MIGA’s of one modules on used builds Promotion course The Investment Campaigns.” Effective “Managing course, e-learning first its created MIGA 2006, year fiscal During E-course countries. developing and least-developed 70 about to ligence sources. The negotiated access rates are available intel market commercial to rates access group favorable as of June 30, 2006 30, June of as Percent, in Region, by TADistribution Portfolio 5 Figure 2,026 1,673 46.6 10.1 11.5 13.8 96 97 98 99 00 02 03 04 05 01 18.6 16 24 9 Sub-SaharanAfrica 29 Global 9 NorthAfrica MiddleEastand 9 theCaribbean LatinAmericaand 13 Central Asia Europeand 20 thePacific Asiaand 20 34 46.0 41 45

65 - - 71 74 77 84

31 operational overview

32 operational overview r r follow: study the from emerging observations General activities. promotional out carry to capacity and tioning posi promotion investment IPIs’ the strengthen to as community,donor the and representatives sector private well as with discussion for basis a as used be will and intermediary, promotion investment in- each with appraised country being are country each for findings The bev and food processing. erages and horticulture, tourism, centers, call manufacturing, textile apparel, countries: the of most for sectors following the reviewed studies The Uganda. and 11 Mali, in Mauritius Mozambique, Senegal, South Africa, Tanzania,Madagascar, out Lesotho, Kenya, carried Ghana, studies countries: Sub- comprised for Africa Program Saharan Benchmarking Enterprise MIGA’s Benchmarking Enterprise Africa 5 Box

regional economic integration and the growth growth the and integration economic continuous regional factors, other among investment; source a of as countries neighboring by played role important an observed study the investors, tional countries. neighboring in originate investments foreign of proportion large A Africa. in operations foreign-owned fully few tively rela found study the locations, operation of terms in mobility international high with sectors selected program the that fact the Despite it.) for compete to locations etc.—leading factories, clothing plants, car as locations—such multiple at locate can investment that to refers relatively investment still (Mobile is limited. sectors international investment” by “mobile in discovered be to investors. yet is Africa

The number of foreign investment projects n diin o interna to addition In

- - - - r r r

relevant, and timely information to prospective prospective to investors is one of the critical factors in determining information timely and relevant, by. come to hard is Information messages. promotion investment effective of development the with addressed be should issue This phase. this enter to enough matured not have of profiles the existing investors suggest that most of the countries investors, international by listed” “short- the being of that potential a have studied assumes countries methodology selection site of stage. selection” “pre-site the in themselves find still studied countries the of Most strategy.targeting investment potential an developing of aspect Identifying important an is investors phenomenon. this in significant role a played markets regional of potential to profit from a relatively untapped market. untapped relatively a from profit to look that investors those move” for available “first is advantage a limited, investments are sectors current studied the As the in of sectors. potentials the benchmarked highlights which are that thriving, projects of number a exist. encountered do study opportunities investment Attractive tools. dissemination information online its through support its tinuing con while building, capacity hands-on provide to opportunity ample sees MIGA countries. most of infor such for pool mation is absent in the services provided by the IPIs source accessible easily An whether a location will be shortlisted for investment. While the application application the While Providing accurate, accurate, Providing The The - - knowledge-sharing and learning portal for investment investment for portal learning and knowledge-sharing In FY06, the number of registered users of MIGA’s online services. and products own MIGA’s as well as partners, agency’s the for tool tional promo a as also but investors, for resource information an as just not serve will site The partnerships. new and existing better leverage to seek will strategy content new the as emphasis, renewed given be will level, sector the at especially development, Content things. other among environments, business on information and insurance, risk political financing, provide that organizations tional was implemented to help users locate public and interna tool interactive an FY06, In issues. FDI-related latest as well as portal, the in content pertinent to attention draw customized receive email to alerts and a revamped continue electronic newsletter that will will FDI.net of Users Africa. sub-Saharan in opportunities partnership private-public and infrastructure, , including objectives, strategic agency’s the with line in areas cially espe investors, of groups distinct to interest particular and NEPAD, Group, of topics highlight will pages These Bank organizations. other World the within entities relevant with partnership in developed pages “spotlight” accessible feature will more portal The audiences. target to information of relevant and make areas as well strategic as its focus, promote and image MIGA’s corporate fit to branded and designed been has FDI.net PRI-Center(www.pri-center.com).upcoming the and (www.fdipromotion.com), Center Promotion FDI net), the corporate website (www.miga.org), FDI.net (www.fdi. site— agency provide the better portal help coordinated online will support through consolidation integrated This one (www.fdi.net). FDI.net into Xchange FDI and process IPA of The consolidation the in resulted intermediaries. and agencies promotion investment support to continuing while issues, FDI and decisions dissemi investment to the relevant information improve of nation to services information its online repositioning of process the began MIGA FY06, In FDI on Information Online average) in FY06 compared with a monthly average of 68,000 in FY05. in 68,000 of average monthly a with compared FY06 in average) (on month a visitors 79,000 than more with year, fiscal this increase to continued traffic States.United Website the and Kingdom, United the Africa, South India, Canada, basis—are regular a updateson email customized receiving users registered of number countries—by five top The 26,000. exceeds now services online all for members registered of number The year. fiscal the during usage increased consistently experienced services These countries. developing in opportunities business and climateissues investment informationon of sources comprehensive most the of one be to MIGA’scontinue informationservices investor online Dissemination Information Online net , PrivatizationLink , - - - -

2 Russian Federation to train investment professionals professionals and officials in the region. Preparations are underway for investment train to Federation the in Russian Investment for Agency National the by used be to expected is and practices, best and studies case local incorporates portal Russian The year. fiscal this during 4,000). The Russian language version of the portal was approaching launched (currently increase to continued Center— Promotion FDI professionals—the promotion early in the next fiscal year.fiscal next the in early expected launch a with developed, being currently is site pilot The community. investor the in individuals 3,500 to distributed survey online MIGA-run a of findings the from the Berne Union and development of the center has benefited from inputs concept The news. and directories as well as practices, best with tools, and research analysis, players risk country to industry regard of expertise and combine knowledge that the resources insurance and management risk political providing shop one-stop free, a as ceived con is site The investors. by well understood always not therefore is tool mitigation risk a as PRI of value the and obtain, to costly too is or available, widely or easily not currently is information PRI-related parties. interested to-use dis virtual space for practitioners, investors, and other to Risk aims easy- an which in issues Political PRI and FDI on information seminate PRI-Center, the or service, Center online Insurance new a of opment devel the in FY06 in made was progress Considerable Center Insurance Risk Political Online practitioners. promotion investment to for courses offerings e-learning as well content as modules, its new include expand to continues Center Promotion FDI portal. the of version language Arabic an

industry. insurance investment and credit export the for community and organization international an is Insurers, Investment and The Berne Union, or officially, the International Union of Creditof Union officially,International or the Union, Berne The 2 investment committee, as well as - - -

33 operational overview

34 operational overview work on another Argentine claim, which was partially paid continuing is There Republic. in Kyrgyz the are and Argentina claims These expropriation. of issues involving claims pending three resolve to seeking actively 2006, is year but fiscal during claims any pay not did MIGA countries. member developing and investors of ingness will and cooperation the on heavily relies MIGA efforts, these In country. host the of reputation investment the affecting negatively avoid to second, and potential; its full realize to able is and country host the in continues investment the that ensure to is one twofold: is is dispute claim a which at a to settlement a seeking actively of objective point The made. the to deteriorate matters see to wants neither since dispute, a to parties both by welcomed MIGA’sgenerally are efforts resolution claims disputes. these resolve to offices good its uses actively MIGA notified, so Once contracts. their under claim a to rise give might that difficulties other and disputes of MIGA notify to required are holders Guarantee provides. it coverage the to addition in investment, an to brings may guarantee MIGA a that that added value significant a is This disputes resolve agency. to the by guaranteed investments impact adversely seeks actively MIGA countries. member and investors to available selectively mediationfacilities its makes also department The MIGA. by issued contracts under compensationbrought for claims handles and investors with policies negotiatesinsurance coverage, insurance of issuance the regarding underwriters to advice legal provides investments, foreign to related matters on countries member assists Department Claims and MIGA’s Affairs Legal Claims and Legal - to 450,000 people in Deqing County in the Province of of Province the in County Deqing in people 450,000 to water potable providing is and commissioned recently plant—was treatment water project—a investment the result, a As authorities. Chinese the and investor foreign in investment an the both of goodwill and cooperation the through China, involving dispute a of settlement a mediated successfully MIGA year, fiscal last the During issues. convertibility transfer involve two and issues involve contract; of breach involve three expropriation; to related these of Four Venezuela. and Senegal, Nicaragua, Mauritania, Republic, Kyrgyz the Guatemala, Argentina, in agency the by guaranteed investments to relating disputes other eight of working problems the resolve actively to and monitoring closely also is MIGA 2007. fiscal early in made be likely will payment and claim, remaining the of part to respect with met burden this had investor the that determined had Committee further Claims to the 2006, 30, June of applicable As claim. the on payment conditions the met has holder guarantee the whether determine to 2005, February in Ethiopia. into investment additional of flow the encourage should majority of these long-standing foreign the investment claims of resolution The ago. years 30 than more ernment gov Mengistu the of actions expro¬priatory to back date that claims outstanding the of resolution the to relating issues resolve to request, government’s the at helped Ethiopia, MIGA example, For investment. foreign future to impediment an as act may that disputes outstanding resolve help to is involvement disputes. MIGA’s of investment purpose The of resolution the for alternative a attractive an as as recognized increasingly involved is inexpensive, not is and informal, voluntary, agency is which Mediation, the guarantor. when member and even investors states between disputes of set the tlement encourages MIGA circumstances, selected In Zhejiang. - - year-end, MIGA’s gross guarantee exposure stood at $740 million, 13.8 percent of the agency’s outstanding portfolio. outstanding agency’s the of percent 13.8 million, $740 at stood MIGA’sexposure year-end, guarantee gross year,fiscal the During At region. the in projects assistance technical five undertook and guarantees six provided MIGA telecommunications as such sectors, attractive in flows as FDI manufacturing. and such from benefited industries also in rose Bangladesh, as investment such India, countries, In billion. Other growth. led $7.1 FDI resource-related and reaching privatization Pakistan, In hotels. 2005, rubber, and and sugar,plastics in cement, grew also Asia South in FDI Net and Malaysia firms. private of acquisition and flows. substantial received assets also Thailand state of privatization continued the to related $4 largely receiving Indonesia billion, with sharply, increased countries Asian other to inflows FDI China, to the contrast of In economy. overheating potential and competition increased from margins profit declining over are concerns Investors some tapered. showing also growth of rate its but billion, $51 approximately still at China FDI, of years. recipient previous largest in the seen remained growth vigorous the to contrast in billion, $67.3 to 2005 in slightly only net rose whole, FDI a as Asia to flows capital for destination significant most the remain Asia East of countries the Although 2004. in percent 9.9 with compared The economies of East Asia and the Pacific continued to expand in 2005 albeit at a slower pace, growing by 8.8 percent Pacific the and Asia Activities Regional Afghanistan Country Guarantees under the program. the under for easier and quicker it makes covered investment fourth the is This coverages. risk of package which standardized a for apply to firms smaller (SIP), Program Investment Small new MIGA’s through written in conflict-affected nations, and improving access to financing options for local SMEs. NAPCOD was under investment encouraging priorities: agency several with aligned is project the in participation MIGA’s payments. of balance country’s the improve help should which export, for destined is production addition to stimulating local businesses that supply goods to the cotton industry. All of NAPCOD’s cotton in jobs, permanent 300 around create to expected is It oil. high-value and feed animal produce to seeds cotton the refine as well as cotton, gin and collect, produce, will project The Afghanistan. of government The NAPCOD is a joint venture between DAGRIS, S.A., majority-owned by the French government, and the cotton. of production the increase to by Afghanistan country northern in the growers of cotton enable sector will that cotton assistance financial the and technical in the providing growth sustainable create to expected is project NAPCOD The AIGF. the through project the for provided was MIGA, by istered admin guarantee, additional An insurance. risk stimulating political of by program a through efforts investment direct foreign reconstruction its in a Afghanistan (AIGF), assisting Fund at Trust aimed Guarantee country the for Investment fund special Afghanistan the of use first the marks coverage MIGA’s in investment first the is MIGA. by guaranteed be to project Afghanistan The disturbance. civil and war and New expropriation, restriction, the transfer in investment currency of risks the against equity covers and years seven to up its of period a for is for company.guarantee the The S.A. DAGRIS, to of percent 60 Franceowns of DAGRIS (NAPCOD). Development guarantee Oil and Cotton for Project Afghanistan million $0.9 a issued has MIGA S.A. DAGRIS, Holder: Guarantee (NAPCOD) Development Oil Cottonand for Project Afghanistan New The Project: Activities

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35 operational overview

36 operational overview China Bangladesh Country Guarantees Compagnie Générale des Eaux, which operates water projects around the world, is expected to have a have to of sector.water expected China’s on effect is demonstration world, participation the The around water. projects water drinkable operates buy which or Eaux, boil des to Générale Compagnie need the eliminate will water potable fully having the in participation sector private ensure Forgovernment. customers, municipal the by sector,to spending water budget Shenzhen reduce to helping vital is involvement MIGA’s areas. urban fast-growing in acute particularly are that problems resource water address government Chinese the help will project The municipality.Shenzhen the by set goals the with line in years coming the in coverage its expand to plans and China, in city any in scale a such of system first the and percentage wastewater,largest its the of percent 75 treats currently company The tons. million 1.5 of wastewater four and plants treatment water treatment plants. It has a five daily water supply capacity of with 1.9 million tons and a wastewater disposal customers capacity million 2.5 services Water Shenzhen 2012. by water tap potable fully providing start to intends but water tap supplies currently company The province. Guangzhou in zone economic special Shenzhen the in customers industrial and commercial, residential, of percent 90 supplies project The network. collection wastewater municipal the This project processes raw water extracted by a state-owned company and treats sewage collected through The China. of Republic People’s expropriation. of the risk the against years 15 in to up of period a for Ltd. is coverage Company (Group) Water its Shenzhen covering in France, of Eaux investment des equity Générale Compagnie to million $40 of guarantee a issued has MIGA Eaux des CompagnieGénérale Holder: Guarantee WaterCompanyLtd. Shenzhen (Group) Project: also company The service. Sheba of percent. dealers exclusive through people 2,000 25-30 about and staff local by 350 trains and employs fall to rates caused has competition increased the and networks, their improve to operators other prompted have actions Sheba’s service. cellular cheaper and better from benefit will Consumers taxes. other and corporate in annually million $20 to addition in revenue annual commerce in rural and urban areas. The national government will receive a 1 percent share of the project’s by 2012. The project will expand access to telecommunications throughout the country, thereby facilitating million six than more to million one current the from customers of number its increase to expects Sheba months. 10-13 from ranging connection a for wait average the and $150 as high percent. 1 than as charges connection with less Bangladeshis, of majority the of for expensive exorbitantly is telephony Landline teledensity low extremely an has reliable of Bangladesh country. shortage the acute in the services address telephone government the help to aims MIGA project, this supporting By prices. petitive deployed rapidly com at services mobile has high-quality offers and network, distribution a Orascom up set infrastructure, network new Banglalink. as company the re-branded and network the upgraded has Orascom Sheba, acquiring Since services. countrywide offers company The technology. GSM on based network telephone mobile national a of maintenance and operation acquisition, the involves project The Islands. Virgin British the in incorporated Ventures,is which TelecomOrascom subsidiary owned wholly its through investment this made Orascom disturbance. civil for a period of up to 15 years and covers against the risks of transfer restriction, expropriation and war and is guarantee The Bangladesh. Telecomin Sheba Ltd. in investment equity its covering Egypt, of laws the MIGA has issued a $78.3 million guarantee to Orascom Telecom Holding SAE, a company organized under TelecomOrascom Holder: SAE Guarantee Holding TelecomSheba Project: Ltd. Activities

- Mongolia Indonesia Country Guarantees bringing new foreign investment into IDA countries. IDA into investment foreign new bringing of goal agency key a reflects country,and the in MIGA’sfirst is project The banks. Mongolian other with ADB and IFC the of work includes that collaboration cross-agency a of part is Mongolia in MIGA’seffort development. private encouraging and sector, banking and financial the in economic improvements on restructuring, focuses which Strategy, Assistance Country new Mongolia’s complement guarantees The investment. new and authorities build the kind of legislative and regulatory infrastructure that Mongolian encourages business as development and return investment strong a reap can projects such that that see investors foreign laws as tition, new and compe additional sector and growth new financial spur should the success bank’s of The climate. paved business privatization the has improving are 2004 including in reforms, of government range coalition wide new a a for of way the election The Union. Soviet former the following the of independence its break-up since FDI new attract to struggled has climate, investment difficult and needed dose of foreign direct investment to this isolated nation. Mongolia, with a relatively small economy much- a in sector,bringing banking while private fledgling country’s the expand to helping is project This training. and compensation of terms in employers top country’s the of one TDB salaries and continues to expend significant amounts on training and education for its employees, making staff raised staff, increased has bank The demand. growing meet to products financial of range into broader a diversify TDB helping thereby expertise, and cash both infuse will owners new The businesses. and the of development the and consumers Mongolian among Already,awareness markets. brand financial strong country’s built has TDB efforts privatization government’s Mongolian the support will project The TDB. the of shareholders became who Bank, Development Asian and Corporation Finance International the by financed was project The contract. of breach and expropriation, restriction, transfer of risks the against protects years, 10 of to Bank up is which Development coverage, and The Trade (TDB). the Mongolia in earnings retained future its and covering investments SCA equity Development million and $22.23 Investment Globull to guarantees in million $20 issued has MIGA SCA Development and Investment Globull Holder: Guarantee TradeProject: Bank Development and Program. Investment Small new its under investors medium-size and small for MIGA’sprocedures using streamlined underwritten was project The Indonesia. of government the for revenues tax in year a $50,000 approximately generate to expected also is project The members. family immediate their and employees all to insurance health provide will MDDI nicians in either the Jakarta or Singapore workshops. In addition to creating employment in Balikpapan, PT tech for provided be will Technicaltraining operations. day-to-day oversee will who expatriate technical a be will which of one and hires local be will which of 34 jobs, new 35 create to expected is expansion This Balikpapan. in workshop in Balikpapan, Kalimantan East, Indonesia. The expansion is in response to customer demand for a service by operations MDDI’s expand to used be establishing a workshop for will selling spare parts and capital for providing service new and maintenance of The diesel engines MDDI. PT into million $1 capital of additional its investment covering Asia, MTU to guarantees in million $0.89 another issued MIGA FY06, In 1 Report). and Annual FY03 (see Asia Indonesia Chrysler Daimler MTU PT by owned by percent owned percent 99 is MDDI PT worldwide. engines diesel of suppliers largest one the Germany, of of Friedrichshafen MTU of subsidiary owned wholly a is Asia MTU Indonesia. in MDDI), (PT Indonesia Diesel Detroit MTU PT to, loan shareholder million $1.8 and in, investment equity $0.6 million its covering Singapore of Asia) (MTU Ltd. Pte. Asia MTU to guarantees two issued MIGA 2003, In Ltd. Pte. Asia MTU Holder: Guarantee Indonesia Diesel Detroit MTU PT Project: Activities

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37 operational overview

38 operational overview Cambodia Bangladesh Afghanistan Country TechnicalAssistance Pakistan Country Guarantees aims to increase competition and expand access to financial services. financial to access expand and competition increase to aims which sector, financial Pakistan’s for strategy Group Bank World the supports Habib to support MIGA’s transfer.knowledge and innovation close and liquidity, high base, capital stable technological increased include impacts development its expected Other bodies. regulatory with cooperation and sector, governance banking corporate country’s the good on on effect emphasis its demonstration with strong a has presence of Habib’s number 25. bank’s the to bringing branches Pakistan, in expansion its continue Habib help to aims investment The Pakistan. in operations Zurich’s AG Bank Habib covers against the risks of transfer restriction and expropriation. This is MIGA’s fifth contract in support of and years 15 to its up for for is guarantee The Switzerland Branches. Pakistan of Zurich, AG Zurich Bank Habib AG in Bank investment capital Habib to coverage guarantee in million $9.66 issued has MIGA Zurich AG Bank Habib Holder: Guarantee Branches Pakistan Zurich, AG Bank Habib Project: Activities Facility on the institutional assessment of the Bangladesh Export Processing Zone Authority.Zone Processing Export Bangladesh the of assessment institutional Facilitythe on Development Enterprise Asia South the to advice and issues, market FDI and staffing, organizational, on advice strategic as capacity,well Investment’s as of Board the build to program assistance technical year to become a competitive investment promotion and facilitation agency. This effort includes an agreed the World Bank Group’s efforts three- to help the country’s Board of Investment, considered key to the PSD loan, leading been Worldhas MIGA a around preparation. centered in is currently loan program The PSD Bank Bangladesh. for Program Support Development Sector Private multi-donor a supporting been has MIGA development. estate the IPI advisory and staff positions, and advised on project structure and content with regard to industrial needs for reference a of terms including developed MIGA Agency, loan, PSD Service the For benchmarking. Investor performance and technical Afghan assessment the the on to provided builds already design has project MIGA The that loan. assistance (PSD) Development Sector Private a of component support institutional the developing in region Asia WorldSouth the Bank’s with work to continued MIGA Activities supervision. its on council generation, investor the servicing, to and aftercare support services. That providing plan are is now FIAS being strategy,promotion investment investment enhance and to plan action an developing on worked FY06 in and implemented MIGA under MIGA/FIAS currently project, loan this PSD Bank Under World a implemented. in being incorporated been has which Cambodia, of Development the for Council the of support in program work a identified year,has fiscal MIGA last the from work on Building

China Country TechnicalAssistance Philippines had been applied to a project preparation facility, and represents a new area of synergy between the the between synergy of area new a provides. MIGA that represents services mitigation risk political and and assistance technical facility, preparation project a to applied been had framework assessment needs MIGA the that time first the was assignment This services. and products monitoring. MIGA’s involvement included an on institutional needs assessment and training on the agency’s projects project and investment, BOT project of promotion coordinates development, project including entity government, an the This of behalf Center. undertook (BOT) MIGA Transfer Industry, Operate and Trade Build of the with Department engagement Philippine the of request the at addition, In Initiative. Miyazawa the under ducted con country, the in program capacity-building MIGA earlier an on builds program assistance This technical processes. reform climate investment country’s the inform to problems investors’ on information being at risk of contraction or disinvestment. The new program will also provide the Board with important as or potential growth further either having as identified investors foreign existing important strategically with relationships longer-term build to seek will program aftercare new Investment’s of Board the years, a Strategic Investor Aftercare Program. In response to some disinvestments from the Philippines in recent MIGA is providing technical assistance to help the Board of Investment Philippines design and implement FY07. in published be to Investment Tradeand Africa-Asia of study a on region Africa Bank World the with collaborating also is MIGA Bank. and investment, outward Development China the and Chinese Bank, EXIM China Sinosure, for insurance risk promoting political on training provided on agencies government with possible closely and collaborated motivations also on MIGA MIGA June. in to workshop a in presented was insight report final The companies. valuable these for locations investment providing are surveyed overseas firms Chinese potential The or established investors. 150 of survey a conducted jointly FIAS and MIGA June, last investment. Beijing in IFC and outward China of government Chinese the with convened conference Global” promoting “Go the on on up Following effort considerable placed has MIGA year, past the Over con MIGA province, TApromotion program. investment Heilongjiang an develop helped also in and assessment needs a ducted agencies Tourism promotion Provincial investment Sichuan three of the request for the At promotion Bureau. investment tourism in training conducted also MIGA online. and print in the available is a Sichuan” for “Snapshot as investors. potential and for input strategy,information of as compendium promotional a serve develop will to bureaus study local The and Bureau coast. Promotion the Investment on Sichuan cities key with Sichuan to comparing interest and potential their investors, to regard with sectors, five and municipalities 10 profiling province, Sichuan in and exercise Sichuan benchmarking in competitiveness FDI Bank an World completed the CPDF and and MIGA CPDF provinces. IFC’s Heilongjiang with working been has MIGA level, provincial the At regions. developed less country’s the for technical multi-year a center resource develop a and strategy promotion investment national a developing to at aimed program assistance ministry the and FIAS with working now is MIGA planning, strategic to support promotion and guidelines promotion investment on investment ministry the advising to provide addition In Commerce. of to Ministry the FIAS with working been has MIGA level, national the At in country. the development sector private promote to Group Bank World the among collaboration future for areas and FIAS, IFC, IBRD, day,Development Sector joined Private FacilityChina Development discuss first Project to the China for (CPDF) also MIGA 2006-2010. period the for Strategy Partnership Country China the develop to IFC and WorldBank the with together worked MIGA FY06, Throughout China. of regions its as well as year, this China of Worldthe with partnerships working developed lesser to investment new attract to efforts in Group, Bank government the with relationships its strengthen to continued MIGA Activities - -

39 operational overview

40 operational overview year-end, MIGA’s gross guarantee exposure stood at $2.5 billion, 46.6 percent of the agency’s outstanding portfolio. outstanding agency’s the of percent 46.6 billion, $2.5 at stood MIGA’sexposure year-end, guarantee gross During the fiscal year, MIGA provided 10 guarantees and undertook eight technical assistance projects in the region. At strong. particularly was lending bank New years. some for established been has that trend a 2005, in increase to continued region the Turkeyto to flows debt private Net high. all-time an to flows FDI brought negotiations, accession EU of opening the with along sectors, financial and telecom the of zation privati the on Progress investment. of amounts large received also 2005, April in treaties accession EU their signed which Bulgaria, and Romania earnings. reinvested substantial and profits corporate buoyant of to due levels also investment, high receive to continued Poland Hungary, and Republic, Czech the expansion, EU the recent in the countries of the wave among particular, first In countries. these to flows FDI of level high the in role countries important accession an EU played and (EU) Union European the of members new in of wave new a and sitions acqui and mergers cross-border for environment favorable The Azerbaijan. and Kazakhstan, Federation, Russian the com High 2005. in countries developing to particularly region, the of countries resource-rich the in FDI in increases significant of drivers main were prices modity FDI in increase the of much for accounted region The $64 of 2004. record in previous billion the from up 2005, in billion $76 record a reached Asia Central and Europe to flows FDI Net Asia Central and Europe Herzegovina and Bosnia Country Guarantees

financed by RZB’s loan, will open up more opportunities for manufacturers and exporters, particularly particularly exporters, and manufacturers companies. for medium-size and small opportunities more up open will loan, RZB’s by expansion, financed of round new This stages. early its in remains Herzegovina and Bosnia in market leasing the the purchase to wherewithal financial the or funds capital equipment needed to add production capacity. borrow Leasing is seen as a viable option for such firms, to but history credit the lack may They tunities. oppor growing—economic new—and these on in getting time hard a have to continue companies local However,growth. smaller export strong and industry heavy in investment foreign and domestic increased by largely recently,driven rates growth growth economic high with registered has Herzegovina and Bosnia equipment. and machinery heavy to vehicles beyond portfolio leasing its broadening market percent 13 gained base, asset its and diversify to plans company the funding, new the With operation. in year one only after share customers 300 to close with worked Leasing Raiffeisen 2004 jectory—in tra growth remarkable its continue company leasing the help will investment new The Herzegovina. and Bosnia in company leasing subsidiary RZB’s with projects MIGA-guaranteed of series a in third the is This funds. of expropriation and restriction transfer of risks the covers and years, five for is guarantee The its covering issued has MIGA AG Österreich Zentralbank Raiffeisen Holder: Guarantee Sarajevo d.o.o. Leasing Raiffeisen Project: Activities growth. sector-led private sustainable of promotion Herzegovina—the and Bosnia for goals development strategic Group’s WorldBank the of one in investment encouraging post-conflict nations, priorities: and improving access to financing options agency for local SMEs. The project several also addresses with aligned is project the in participation MIGA’s e 10 million shareholder loan to Raiffeisen Leasing d.o.o. Sarajevo of Bosnia and Herzegovina. and Bosnia of Sarajevo d.o.o. Leasing Raiffeisen to loan shareholder million 10 e 9.5 million in guarantees to Raiffeisen Zentralbank Österreich AG (RZB) of Austria Austria of (RZB) AG Österreich Zentralbank Raiffeisen to guarantees in million 9.5

- - - - - Kazakhstan Bulgaria Country Guarantees supporting the diversification of its economy and improving its competitiveness. its improving and economy its of diversification the supporting Kazakhstan— for Strategy Assistance Country Group’s Bank World the in envisaged priorities in main the markets capital of growth the encouraging of one addresses project in the MIGA’sin confidence. participation market building just in also but Kazakhstan, not role critical a playing is changes, these along with support, MIGA’s then. since economy the in changes positive been have There 1990s. late the in depression, devaluation and inflation—led to a severe flight of foreign capital investment from Kazakhstan economic severe of years with crisis—coupled financial Asian the and default treasury Russian 1998 The transparent. and competitive more market mortgage the making towards contribute and borrowers middle-income for financing mortgage to access to available improve sources will project Developmentally, the non-banks. funding and banks both of institutions, financial Kazakhstan’s arsenal the to instrument markets capital new important the an of introduce development the in and finance housing step of availability the increase important help to expected an is project sector.The financial country’s represents transaction markets capital innovative This transaction. the for funding paper commercial international obtain helping in instrumental were antees TuranAlem.Bank MIGA’sof guar subsidiary lending consumer the BTAIpoteka, from mortgages dential and funded by a multi-seller conduit sponsored by ABN Amro Bank, N.V.—purchased the portfolio of resi First Kazakh Securitization Company—a newly created special purpose vehicle located in the Netherlands, transaction. MIGA’smarkets capital third mortgages—and of securitization true-sale first country’s deal—the groundbreaking a was This priation. expro and restriction transfer currency of risks the against portfolio mortgage the by generated payments interest and principal the of portion a insuring is MIGA Kazakhstan. in securitization mortgage-backed a Company,Securitization B.V.,Kazakh First for the to coverage guarantee in million $75 issued has MIGA Company,Securitization Kazakh First B.V.Holder: Guarantee Securitization BTAMortgage Project: Ipoteka WorldGroup. the Bank by supported program reform medium-term Bulgaria’s of cornerstone sector,a power the of privatization and restructuring the promotes project The Galabovo. of region the in opportunities job indirect and direct significant create to expected is plant capacity.thermal incompliant environmentally and inefficient replace will 1 East Maritza AES 2009, in The operational Once source. fuel indigenous only Bulgaria’s utilizing while grows, economy nation’s the as electricity for demand future support will facility art state-of-the efficient, compliant, environmentally The will operator, grid agreement. 15-year a under state-owned electricity the purchase the NEK, country. the throughout distribution for the grid power supply Bulgarian will Mines East Maritza nearby The The agreement. purchase 15-year Sofia. a under of lignite southeast km 270 about Galabovo, of pality munici the near plant, power 1 East Maritza old the to adjacent plant power coal-fired lignite (net) MW 600 a operate and own, build, finance, will EOOD, 1 East Maritza company,AES-3C project private The funding. bank commercial term long- mobilize to ability project’s the in role important an MIGA’splayed equity). involvement and (loans disturbance civil and war and only) (loans expropriation of risks the cover and years 16 for are guarantees BV,Corporation.The Holdings AES Bulgaria US-based AES by by owned investment wholly equity million cover guarantees issued has MIGA BV,Holdings Bank Bulgaria Investment AES CalyonCorporateand Holder: Guarantee EOOD 1 East Maritza AES-3C Project: Activities e e 89 million in loans and interest on loans syndicated by Calyon of France, and a a and France, of Calyon by syndicated loans on interest and loans in million 89 99 million in guarantees for the construction of a new power plant in Bulgaria. The The Bulgaria. in plant power new a of construction the for guarantees in million 99

e 1.1 billion plant, a base-load facility, will connect to the to connect facility,will base-load a plant, billion 1.1 e 10 10 - - - -

41 operational overview

42 operational overview Montenegro and Serbia Federation Russian Country Guarantees improved access to finance. to access improved through growth business medium-size MIGA’sand small reflects support to also and nations, post-conflict project rebuild The to efforts reduction. poverty on and sector private dynamic more a creating on Strategy,CountryAssistance Montenegro’s and focuses Serbia which complements guarantee MIGA The demand. growing meet to expansion enabling periods, loan longer with credit secure to businesses more for door the open will capacity lending medium-term Raiffeisenbank’s to Enhancements nation. European southeastern well-located this of notice more taking business small local to obstacles from investors foreign prevents also primary infrastructure financial undeveloped behind relatively the country’s The growth. of lags one is sub-sector credit credit available The of lack banking. the by dominated considerably—and currently is which market, the expand and deepen help will sector financial limited and young a with country a in projects finance MIGA’son focus has 1990s. MIGA that RZB with project such fifth the of war civil and upheaval political the from the emerge to working still is which nation, this in is guaranteed This enterprises. medium-size and small by inated dom is sector,which corporate Serbia’s to lending medium-term its expand bank the help will loan The expropriation. and restriction transfer of risks the against covers and years six for is guarantee The Montenegro. and Serbia of a.d. Raiffeisenbank to loan non-shareholder million a issued has MIGA a.s. Raiffeisenbank Holder: Guarantee a.d. Raiffeisenbank Project: region. the for strategy reduction poverty Group’s Bank World the supports project The coverage. risk political without possible been have not would said lenders which package, financing the together put to needed piece critical the was MIGA’sinvolvement 2014. December to up of life mine initial an over taxes in million $345 estimated an generating while resources, natural untapped significant region’s the given investment, and direct foreign additional training, attract should job mine the operational, Once healthcare, SMEs. for with support populations, indigenous including communities, local help to years eight over million $3 invest to plans company The scale. pay local the of end high the at wages earn will who workers, local mostly 600 employ will mine the operational, fully Once widespread. is poverty where Chukotka desolate remote, the in development region of Siberia, where unemployment has jumped 50 percent since the economic breakup of the and stimulate to expected is project Kupol The sale. for gold bullion into refined be will bars grinding, conventional gravity separation, whole ore leaching, and precipitation to produce doré bars. The the and crushing primary through for processed be will silver.ore of The ounces deposit, million 4.7 and gold of silver ounces and gold 550,000 at high-grade estimated is mine a the of production annual Average metals. contains the of processing and extraction which property, Kupol the develop will Bema million. $110 to exposure net limiting thus million, $130 MIGA’sfor reinsured exposure gross the against protect CanadaDevelopment Export disturbance. and civil and war has and expropriation, restriction, transfer of risks years, eight for are guarantees The Mitsubishi. from and banks the from loans non-shareholder in million $361 and investment equity million $122.8 Bema’s of portion a cover antees guar Federation.The Russian the in project gold Kupol the of development the for Company Geological and Mining Chukotka the to loans and in investment equity respective their covering (UK), Corporation Mitsubishi Germany,and of AG VereinsbankGénérale und Hypo- Société Bayerische and Canada, itself of of behalf on FranceCorporation of Gold SA Bema to guarantees in million $305 issued has MIGA Corporation Mitsubishi and SA, Générale Corporation,Société Gold Bema Holder: Guarantee Kupol Project: Activities

e 47.5 million guarantee to Raiffeisenbank a.s. of the Czech Republic covering its covering Republic Czech the of a.s. Raiffeisenbank to guarantee million 47.5

e 50 - - Armenia Country TechnicalAssistance Georgia Croatia Ukraine Country Guarantees is also funding capacity-building and training activities for Croatia.for activities training and capacity-building funding also is Croatia-specific investor outreach and marketing desk in the EIOP project office in Vienna, and the alliance a established has MIGA project, country.the the Under across MIGA’sagencies development regional several of of network a represents implementation partner, main CIPO’s Agency,strengthen Development and Istrian The Croatia. support in activities to EIOP Agency MIGA, between Development partnership Istrian formal the a and is CIPO USAID, Program. Outreach the Investor under European (CIPO) the Alliance of Outreach umbrella Promotion Investment Croatian the established MIGA year, Last reassessedADA’s institutional capabilitiesproject thepartofcompletion as report. MIGA follow-up. and missionsupervision Group WorldBank a in participation MIGA and States United eastern the to ADA by effortoutreach an included year activitiesthiswrap-up component.Projecteration devel investment/export an skill genservicing;exporterand andinvestorinstitutional opment; forbuildingcapacity staff and infrastructure investment components: major three comprised project The needs. (ADA)—the project helped develop skills, operational systems, and procedures to facilitate privateAgency DevelopmentbusinessArmenian agency—the strategy.this promotionThrough a implement and cessing spectiveinvestment and exports through the establishment of a lead agency to streamline transaction pro pro responsivenessfor the testing at aimed project The (LIL). LoanInnovation Facilitationand Learning Thisyear saw the conclusion of MIGA’s participation in the World Bank-led Foreign Investment and Export Activities Annual Conference of the America-Georgia Business Council, and provided GNIEPA with a detailed detailed a with GNIEPA provided and support. donor coordinating and seeking and strategy a Council, formulating for roadmap Business America-Georgia the of Conference Annual 8th the in participated also MIGA investment. direct foreign promote to government the from mitment com evident an and GNIEPA in developments initial positive stressed MIGA report further The of assistance. possibility technical the report discussed its and steps, presented next on MIGA stakeholders year, the with This agreed GNIEPA, (GNIEPA). to Agency Promotion Export and Investment National Georgian the of assessment needs a conducted Group, WorldBank the with together and Development, year,fiscal last Late Economic of Minister Georgian the from assistance for request a to responded MIGA contract for the project under guarantees issued in 2003. For more information, visit www.miga.org/ visit information, more For 2003. canpack1. in issued guarantees under assistance project technical and the for management a contract and loan, shareholder a for coverage providing also is MIGA plant. production can beverage aluminum an of operation the involves project The The coverage protects against the risks of expropriation, war and civil disturbance, and transfer restriction. of Can-Pack Ukraine to Pol-Am-Pack. The guarantees cover the investors’ equity investment in the project. control percent 47 of transfer Can-Pack’s reflecting 2003, in S.A. Can-Pack to issued contract previous a replace contracts The subsidiary,Ltd. Ukrainian Can-PackUkraine in investment their for Poland, of both S.A., Pol-Am-Pack subsidiary its and S.A. Can-Pack to million $33.7 totaling guarantees two issued MIGA S.A. Pol-Am-Pack Can-PackS.A., Holder: Guarantee Ltd. Can-PackUkraine Project: Activities

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43 operational overview

44 operational overview Regional Tajikistan Montenegro and Serbia Macedonia Country TechnicalAssistance See results on the EIOP, above. EIOP, the on results See months. coming the in stakeholders other and counterparts ernment gov with recommendations and findings report’s the discuss to planned A is Russian. conferences into video of translated series being currently are and of prepared core been the have form report will assessment that diagnostic a chapters of number a Recently, capacity. facilitation investment and climate investment country’s the strengthen to aims and government, Swiss the by financed effort, two-year a is Work continued under the MIGA/FIAS investment climate and facilitation project in Tajikistan. The project promotion. investment for tools online MIGA’s with staff agency promotion investment familiarize to sessions training held agency The Kosovo. in activities promotion investment existing of nature the and arrangements institutional current on agency,centered promotion investment established newly Kosovo’s with talks held MIGA Kosovo, In activities. as outreach investor and research materials, of support as well marketing of design the and development, website training, and development skills plan, to support the new agency in its start-up phase, including the development of a start-up strategy and work program 12-month a involves design project beneficiary.The main the as Agency Promotion Investment pro Montenegrin investment established newly the with implemented EAR/MIGA be will project The Montenegro. in project motion earlier-conceived an reactivated MIGA and EAR year, this Montenegro In MIGA. by guided above), (see Program Promotion Investment Serbia the initiative, promotion investment- major a of launch the saw also Serbia initiative, MIGA’sEIOP in participating to addition In year.fiscal the of end the at assistance its concluded MIGA MIGA’swork. with coordinated fully and EAR, by funded and managed MACinvest, for program support larger,a longer-term for way the paved project The Vienna. in system EIOP’s to linked MACinvest, within system client-relationship-management a of installation and strategy targeting investor an of design the towards Macedonia’s participation in a MIGA enterprise benchmarking study of the Western Balkans; and The MACinvest. contribution financial agency, a MACinvest; to support capacity-building promotion components: three of consisted investment project Macedonian established newly Development the Austrian the by targeting Agency, funded Macedonia, in project a undertook MIGA year, fiscal the During Activities - - At year-end, MIGA’s gross guarantee exposure stood at $1.095 billion, 20.4 percent of the agency’s outstanding outstanding agency’s the of percent 20.4 billion, $1.095 at portfolio. stood exposure guarantee gross region. MIGA’s the in year-end, projects At assistance technical six undertook and guarantees 19 provided MIGA year, fiscal the During flows. FDI in improvements see to failed uncertainties, political of internal experiencing share those particularly lion’s countries, other the while FDI, absorbing Colombia and Mexico, Brazil, as across such Performance countries with stalled. however, uneven, services was in FDI countries while manufacturing, in investments increased the in discernable was stability,macroeconomic enhanced from resulting competitiveness, improved of impact The prices. commodity high of advantage taking investors resource-seeking and States United the in recovery economic of result a billion, $59 at stabilized region the to FDI Net 2004. in year,percent the 5.9 during from percent down 4 to slightly dropped growth regional of pace the although 2005, in momentum considerable show to continued America Latin of economies The Caribbean the and America Latin Brazil Bolivia Country Guarantees Project: Nordeste TransmissoraNordeste S.A. Project: Energia de macro and political difficult recent of conditions. economic face the in sectors corporate and financial the restructuring and strengthening on focusing Bolivia, for strategy assistance Group’s WorldBank the with aligns project The economy.functioning well- any of lynchpin banks—a Bolivia’s of viability the reaffirm help should performance in improvement anticipated four.the top turn, country’s In the among ranked consistently has that bank a strengthen help a challenging operating environment and a loss of liquidity due to currency mismatches. The new loan will with coupled recession, four-year a with dealing is sector banking Bolivia’s when time a at comes loan The services. financial retail and corporate both liquidity.provides strong bank its The bank the allowing funding, longer-term more flexibility to to improve the asset-liability match in its corporate and mortgage portfolio and to maintain access increased bank the gives loan The position. financial its strengthen to able be will banks, top country’s the of one Bolivia, de Crédito de Banco loan, the With expropriation. and restriction transfer of risks the against protects and years six for is guarantee The (BCB). Bolivia de Crédito de Banco to loan holder share million $15 its covering Peru, del Crédito de Banco to guarantee million $14.25 a issued has MIGA Peru Créditodel de Banco Holder: Guarantee Bolivia Créditode de Banco Project: Activities (cont’d) bidding. competitive international to subject were concessions The line. for transmission agency the of regulatory maintenance and electricity operation, construction, federal the sector. Brazil’s energy with agreement country’s the concession a in involves bottlenecks lines the of infrastructure Each existing reduce to lines Brazil transmission of energy parts five of different in construction the involving undertaking larger a of part is project This ACS (Grupo years. 15 to S.A. up for contract, of breach and restriction transfer currency of risks the Industrial against is coverage Dragados to insurance MIGA’sBrazil. in line transmission energy investment an of construction the in investment its for Spain of Dragados) in million $23.1 provided has MIGA S.A. Industrial Dragados Holder: Guarantee

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45 operational overview

46 operational overview Brazil Brazil Country Guarantees

(cont’d) Brazil. Northeast in grids Franciscopower São de Hidroeletrica Companhia the Furnasand the between inter-connector an important be will project The Bahia. of state the in line transmission 105-kilometer a of operation and struction TransmissoraMunirah by con project the Camaçari-Sapeaçuline comprises The transmission Energia de state. the Westernof the part in grid power the of reliability the improve significantly to expected is project The Sul. do Grande Rio of state the in line transmission 363-kilometer a of operation and struction con the comprises Energia Transmissorade Sul by project line transmission Rosa Uruguiana-Santa The grids. regional Southeast the and South the between connector inter- an be will project The Paraná. of state the in line transmission 371-kilometer a operate and build Transmissorawill Artemis SA, by Energia sponsored de line, Santiago-Cascaveltransmission Salto The bidding. competitive international to subject were concessions The line. transmission the of maintenance and operation, construction, the for agency regulatory electricity federal Brazil’s with agreement concession a involves lines the of Each capacity.and length both of terms in vary and country the of parts different cover lines transmission The sector.energy country’s the in bottlenecks infrastructure existing reduce to Brazil of parts different in lines transmission energy five of construction the involving undertaking larger a of part are projects The years. 15 to up for contract, of breach and restriction transfer currency of risks the against is projects four all for MIGA’sBrazil. in coverage line transmission energy four of construction the in investments its for Spain of S.A. Industriales Montajes Controly to insurance investment in million $47.1 provided has MIGA S.A. CYMI, Industriales Montajes Controly Holder: Guarantee TransmissoraUirapuru Energia, Energia de TransmissoraTransmissoraSul Munirah Artemis S.A.,Energia, Project: Energiade de infrastructure. its improving by competitive more become Brazil help to things, other among Strategy,aims, Assistance CountryWorldwhich Group’s the Bank with line in is project The electricity,training. to job access and public expanded competition, of creation materials, local of purchase royalties, and taxes of generation The the include impacts development Other transmission. jobs. electricity overall of 25,000 percent 25 about about of for account will generation MIGA by the underwritten lines and transmission new five capacity electrical in increase percent 20 in estimated resulted an have 1999, in instituted program, the through undertaken Investments concessions. energy electric its in partnerships public-private for calls that program Brazilian a under operate will project The energy.of delivery reliable and efficient more a for allow will system electrical interconnected the drought, to due levels water in fluctuations to subject dams hydroelectric by produced is energy Brazil’s of most that Given 1980s. the in programs austerity of result sector,energy a country’s the in levels investment low for compensate to need a to responds project The grid. power Northeast the to delivery power of reliability the improve significantly to expected is project The Paraíba. of state the to Pernambuco from line transmission 186-kilometer a and Pernambuco, of state the to Sergipe of state the SA, Energia de Transmissora Nordeste by involves the construction sponsored and operation of a 193-kilometer transmission line from an existing substation line, in transmission Grande Xingó-Campina The (cont’d) Activities

- - Republic Dominican Brazil Country Guarantees investment in frontier markets and scaling up support for urban infrastructure projects in developing developing in projects infrastructure urban sector for countries. private support up catalyzing scaling and priorities: markets agency frontier in several with investment aligned is project the in participation MIGA’s In project. operational. once 1,300 about the and phase, construction the during of jobs 2,465 create to expected is life project the over million $50 at estimated addition, revenuesgeneratedbytheprojectaboveaspecificthresholdwillbepaidtogovernment.The generation tax and capital, the in markets to Other development impacts include growth in agribusiness, as farmers will have faster and cheaper access Domingo. Santo of airport international the to road the by connected is and 1.5 hours respectively. Progress on the toll road has already led to investments in a free trade zone that portation costs by reducing distance and travel time from 220 kilometers and four hours to 120 kilometers the providing and costs infrastructure needed to further develop the tourist area of Samaná. The project is expected transportation to lower trans reducing of terms in impact economic positive highly the given country,the in competitiveness consonant and is growth economic restoring project of The strategy Group’s Bank Worldpeninsula. the with northeastern country’s the with Domingo Santo connect will that road toll kilometer 106 a of maintenance and operation, construction, design, the of consists project The project. the for equity providing jointly are above) holders guarantee (see investors The contract. of breach expro and restriction, disturbance, civil transfer and of war risks priation, the against years 20 to up for the A. Por. C. in Nordeste road del Autopistas toll for a of development the for insurance risk Dominican Republic. The insurance covers a $14 million equity investment in and $162 million bond issue political in million $108 provided has MIGA Panama Grodco and Inc., Holding Odinsa S.C.A., Grodco Limited, (Cayman)Nordeste del Autopistas S.A., Internacional Ingeniería de Organización Holder: Guarantee Por.C. Nordeste A. del Autopistas Project: among aims, infrastructure. its improving which by competitive more Strategy, become Brazil help to things, other Assistance Country Group’s Bank World the with line in are projects The electricity,training. to job access and public expanded competition, development impacts include the generation of taxes and royalties, purchase of local materials, creation of Other transmission. electricity overall of percent 25 about for account together will lines transmission new five The jobs. 25,000 about of generation the and capacity electrical in increase in percent 20 resulted estimated an have 1999, in instituted program, the through undertaken Investments concessions. energy electric its in partnerships public-private for calls that program Brazilian a under operate will projects The energy.of delivery reliable and efficient more a for allow will system electrical interconnected the drought, to due levels water in fluctuations to subject dams hydroelectric by produced is energy Brazil’s of most that Given 1980s. the in programs austerity of result sector,energy a country’s the in levels investment low for compensate to need a to respond projects The grid. power state’s the of reliability the improve significantly to expected is project The Paraná. of state the in line transmission a of operation and construction the comprises line transmission Energia Transmissorade Uirapuru The (cont’d) Activities

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47 operational overview

48 operational overview El Salvador El Ecuador Country Guarantees developing countries can easily tap into. MIGA aims to increase its support for projects that mitigate mitigate that projects for support its warming. global with associated increase practices harmful to aims MIGA into. tap easily can countries developing that sector a in work can finance carbon how illustrates also and gases, greenhouse reducing of benefits the on in cash indeed can countries developing smaller in projects that signals deal groundbreaking This reductions. emission certified the of delivery on fund has Inc., Energy carbon private a Biothermica to credits carbon sell holder, to agreed has and process Kyotovalidation the Protocol completed guarantee The 2006-2012. from of year tons a 190,000 and equivalent 140,000 dioxide between carbon be to expected are gas captured the from reductions Emission plant. power gas landfill MW 4 a of construction the involve will project the of two Phase dioxide. carbon of that than higher times 21 is methane of potential warming global The decade. next the gas within double methane to expected needs, are emissions disposal waste municipal With country’s gas. entire the methane meet of to year expand a to slated tons landfill 7,500 the some generating year, a waste solid of tons 500,000 receives Salvador.San metropolitan serves that landfill currently a landfill at The waste municipal by generated gas flaring and capturing for facilities of operation and construction the involves project the of phase first The KyotoProtocol. the of Mechanism Development Clean the of under reductions emission carbon the for breach and disturbance, approval of civil letter a and under commitments government’s war Salvadoran the of breach expropriation, the contract—including of risks the covers guarantee Biothermica The company Inc. Canadian to Energy coverage guarantee in million $1.8 providing by project the porting sup Salvador.is El MIGA in landfill a at reducing dioxide carbon harmful by less to gases methane of gained conversion the credits carbon from result will sell Protocol, Kyoto the will under sold be that can which reductions, project The emissions. a gas greenhouse for support first-ever its providing is MIGA Inc. Energy Biothermica Holder: Guarantee S.A. BioEnergia Project: . MIGA’sProgram through Investment underwritten Small was project The resources. economic to access and country,opportunities increase and the in growth economic sustainable and diversified for foundations the lay Ecuador,to aims which for Strategy CountryAssistance WorldGroup’s the Bank with line in is project MIGA’sthe for support benefits. expected yields project this if expansion further to lead to likely is and Ecuador in investment seed CrownS.A.’s Prodenvases represents project The million. $1 reach to expected are 2006 for Sales year,$441,000. the reached of sales end the to operations, began plant the when From2005, benefits. July transfer technology deliver to expected is which project, the for equipment necessary the Ecuador.Colombiainstalled in from sectors Staff food and industrial the for cans plastic and metal commercialize and assemble, manufacture, will S.A., Ecuador Crowndel Envases de Productora Ecuador.enterprise, Guayaquil, project in The line assembly can paint metallic a financing is investment CrownS.A.’s Prodenvases region. the throughout containers metallic of production the Colombianmanufacturer,in a Crown,specializing is Prodenvases investor The years. seven to up of period a for disturbance civil and war and expropriation, restriction, transfer currency of risks the against MIGA’sS.A. is Ecuador coverage Crowndel Envases de Productora in investment equity $215,000 their Colombiafor from CrownS.A. Prodenvases to insurance investment in $193,500 provided has MIGA CrownS.A. Prodenvases Holder: Guarantee Ecuador Crowndel Envases de Productora Project: Activities

- Jamaica Salvador El Country Guarantees million. The project is also consistent with MIGA’s priority of supporting investment in infrastructure. in $362 investment MIGA’ssupporting with of consistent of priority also is project revenues The million. net in increase cumulative a to leading years, eight next the for annually by percent five revenues increase to expected is expansion The constraints. infrastructure from growth, suffered economic has maintaining which and fostering of strategy overall government’s the into fits project The region. transshipment. international is traffic the port’s the of of percent 90 Already hub transshipment the as itself position also Port but the competitive help remain will only not modernization Authority and expansion The capacity. current its above increase percent 20 a By the end of the fourth phase, the terminal is expected to handle 1.5 million 20-foot containers annually— 2005-06. for scheduled is expansion the of phase fifth A million. $22 at valued cranes, new four acquiring and space storage container of hectares 37 paving berths, new of meters 500 than more completing include plans expansion The expansion. terminal container its of phase fourth the in Jamaica of Authority Port the support to earmarked is Jamaica Scotia Nova of Bank the to loan shareholder The Jamaica. Terminalin Container Port Kingston the support will project This contract. of breach and expropriation, restriction, transfer of risks the against years 15 to up of period a for is coverage The Limited. Jamaica Scotia subsidiary,Nova its of to Bank loan the shareholder MIGA has issued a $41.8 million guarantee to the Bank of Nova Scotia of Canada covering its $44 million Scotia Nova of Bank The Holder: Guarantee Limited Jamaica Scotia Nova of Bank The Project: SMEs. for finance to access improve that projects in and SMEs in investment as well as investments, South-South supporting priorities: MIGA several addresses and Salvador El for Strategy CountryAssistance the with consistent MIGA’sis project the in involvement buses. and taxis, trucks, of financing the with sector services tation transpor the of expansion the and yields agricultural improve to equipment farming modern of duction intro the include benefits project economy.Other the to contribute and in participate to them enabling This project is expected to enhance prospects for smaller companies that have limited access to financing, areas. metropolitan major the outside live farmers—who or contractors industrial small them of customers—many for access increased allowing purchase to history credit the country,the throughout scattered or are depots equipment and offices company’s cash The outright. equipment the have not might that enterprises medium-size and small of market target its serve better to Arrinsa position help will This Arrinsa. for reach broader a and agement, management asset banking, a man financial sophisticated expertise, as needed bring will CentralAmerica throughout firm brokerage and record track established Interfin’s facilities. and equipment telecommuni cations and estate, real commercial tractors, as such assets of range wide a include to portfolio leasing company’s the expand to Arrinsa, of owner new the Interfin, Corporación allow will project The Investment Small MIGA’s under issued was guarantee Program. The civil and years. 10 war to and up period expropriation, a for restriction, disturbance, transfer of risks noncommercial the against coverage of package standardized a Salvador.provides El guarantee of The S.A. Leasing Arrinsa in investment million equity $4 its for Rica Costa of S.A. Interfin Corporación to guarantee million $3.15 a issued has MIGA S.A. CorporaciónInterfin Holder: Guarantee S.A. Leasing Arrinsa Project: Activities

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49 operational overview

50 operational overview Uruguay Nicaragua Country Guarantees Country TechnicalAssistance El Salvador El Colombia For more information, visit www.miga.org/abengoa1.visit information, Formore unchanged. remain guarantee the of tenor and conditions, and Uruguay.terms in The TeymaS.A. to Uruguay loan its for Bank National Fleet to guaranty S.A.’s Abengoa for $574,750 of coverage additional issued has MIGA S.A. Abengoa Holder: Guarantee TeymaProject: S.A. Uruguay www.miga.org/finarca1.visit project, the on information Formore SMEs. to available options financing the increasing by services small and medium-size enterprises (SMEs). The project is expected to contribute to the country’s financial The project consists of the expansion of Finarca’s lease financing program, which will mainly be devoted to disturbance. civil and war and expropriation, restriction, transfer of risks the against coverage provide Both years. 10 of period a for loan shareholder S.A. the and years, 15 of Centroamericana, period a for guaranteed is Arrendadora investment equity The Nicaragua. Financiera of (Finarca) to, loans shareholder and in, investments equity its for Rica Costa of (Interfin) S.A. Interfin, Corporación to million $1.9 of coverage additional issued has MIGA S.A. CorporaciónInterfin, Holder: Guarantee Centroamericana,S.A. Arrendadora Financiera Project: Activities constituted by the end of the year. the formally of end the is by constituted it when quickly activities launch to agency the allow will and advantage, comparative a have Cundinamarca and Bogotá which in sub-sectors identify will work This services. and agribusiness, turing, manufac including sectors, key several in opportunities investment analyze to stakeholders with worked also MIGA partnership. public-private MIGA’sclose a by supported initiative promotion sub-national first agency—created The with directcontributionsfromtheChamberofCommerce ofBogotáandtheDistrictCouncil—represents project. the in stakeholders key involve to effort an spearheaded MIGA year, This Cundinamarca. of region the and Bogotá covering agency promotion investment an for plan business a of development the and FDI, attract to capacity region’s the of assessment an included activities Initial of CommerceMIGA launchedathree-yeartechnicalassistanceprogramwithBogotá’sChamber last year. Activities and willandcontinue provideto informal assistancehocad PROESAtoensureto continuedits success. the after management, communicationwithfollow regular maintains MIGA out. should phased is program assistancetechnical PROESA framework the out set helped MIGA (CAFTA), Agreement Trade Free CentralAmericanthe of signing the of light incompetitiveSalvador’s positionEl and needs itsreviewing to addition In future. the forpreparation ininstitutional frameworkand strategic its agency,defining and the restructuring involved PROESA in activities MIGA’sfinal 2004-05. in operations of restructuring the investmentthepromotion intermediary,ofopment to 2000 inagencyestablishment thethefrom rightof motion intermediary, this fiscal year.pro Overinvestment the national life country’sof thethe project,PROESA, MIGAwith participatedprogram assistance in technicalthe institutionalits completed devel MIGA

- - - Regional Nicaragua Honduras Guatemala Country TechnicalAssistance Activities in the benchmarking studies include Antigua and Barbuda, Bolivia, Colombia, Costa Rica, Dominica, Dominica, Rica, Costa Colombia, Bolivia, St.Lucia. and Peru, Ecuador,Panama, Salvador,Nicaragua, El Honduras, Barbuda, Guatemala, and Antigua include participating studies countries benchmarking Regional the markets. in key for competitors against performance country individual benchmark to then internationally,and compete to able likely most are they industries which on mation infor with countries participating provide to is benchmarking enterprise the of objective The America). (Central Bank Development Inter-American the and region), (Andean Corporation Development Andean marking exercise, funded by three donors: the Commonwealth Secretariat (Eastern Caribbean region), the bench regional a conducting is agency the Program, Benchmarking MIGA’sEnterprise of Global part As operations. improve to guidelines policy and elections, presidential next the through sustainability institutional ensure to techniques avoid, as to pitfalls such operations continuing its on recommendations of series a with ProNicaragua provide also will report closure country.The the in program its of impact the evaluate will which report, project-closure a preparing currently is MIGA Nicaragua. with program assistance technical MIGA’slong-term of clusion con the saw year fiscal This FDI. attracting in results substantial achieved has agency,which promotion investment national effective functioning, fully a as itself established has ProNicaragua years, the four In its past Loan. Innovation since and agency, Learning Bank World a promotion by supported investment was work MIGA’s 2002. country’s in the inception ProNicaragua, to support provided has MIGA location. investment an as offer to has Honduras what match that needs 1,000 with companies over of list a generate will study sector Each campaigns. promotion investment proactive launch to MIGA’sguidance under generated companies of lists use to able be will FIDE context, favorable this in and America, Central of profile the increased CAFTAhas of passage The investors. attract to potential highest the have Honduras in sub-sectors which determine to sectors agribusiness and manufacturing intermediary,promotion investment national the FIDE, at staff with junction light the reviewed specialists con year.In this significantly increased project the under Activities Honduras. Tradeand in a Loan Competitiveness under component FDI-related an implement to Bank World the with cooperating is MIGA jobs. indirect 8,000 approximately facilitate and jobs direct 3,500 over generate to expected are investments these operational, fully When sectors. above the in FDI new in million $66 over facilitating for responsible was IIG year, Last initiatives. promotion sector agency’s the for support intensive and IIG; at Investment personnel CAFTA intelligence of market hired newly organization for training year; US; the Tours to upcoming Promotion the for needs and assessment an performance included agency which current process, of budget the through guidance issues: central four on focused Worldthe by supported operations work lending year’s and This program Bank. competitiveness a to tied MIGA is continuing to support Invest in Guatemala (IIG) in its efforts to attract FDI. This project is closely - - - -

51 operational overview

52 operational overview At year-end, MIGA’s gross guarantee exposure stood at $285.48 million, 5.3 percent of the agency’s outstanding outstanding agency’s the of percent 5.3 million, $285.48 portfolio. at stood exposure guarantee gross MIGA’s year-end, At region. the in projects assistance technical four undertook and guarantees 10 provided year,MIGA fiscal the During region. the of perceptions investor and sectors, public large developments, political by determined largely still are region the in prospects flows, FDI in increase the Despite services. energy in and energy in FDI of Tunisialevels and significant Egypt received of Republic Arab the Both flows. tourism exports, increased include that prices oil receipts, and investment higher and remittance flows. Reforms of in selected countries have also producing contributed effects to increases in FDI non-oil spillover Many from demand. benefited oil region strong the and in prices countries oil high been have growth of drivers main The 2004. over Averagecountries. producing oil the in increase small a percent, 5.1 at estimated is 2005 for region the in growth GDP percent increase. The rapid increase in FDI was a result of several privatizations in the region and resource-related FDI Net FDI in the Middle East and North Africa increased from $5.3 billion in 2004 to $8.6 billion in 2005, more than a 60 Africa North and East Middle Iran Iran Country Guarantees (cont’d) NEXI. disturbance. civil and war insurer,national of Japan’s by provided risk guarantee risk political the a complements Itochu to MIGA’sagainst guarantee NPCT and Chemicals Cementhai covering also is MIGA investments. loan shareholder the and equity the both for contract of breach of risk the against years 15 shareholder loan from Itochu to the project enterprise, Mehr Petrochemical Company (JV). Coverage is for million $96 respectively.a million, cover $8.6 also and guarantees million, The $7.1 million, $27.1 totaling Japan, Corporationof Itochu and Thailand, of both CompanyLimited, Public Petrochemical National and Ltd. Co., Chemicals Cementhai by investments cover guarantees first The Iran. its in project project, a for petrochemical ever coverage venture joint a for coverage guarantee in million $122 issued has MIGA Limited, Company Public CorporationItochu Petrochemical National Ltd., Co., Chemicals Cementhai Holders: Guarantee Company(JV) Petrochemical Mehr Project: investors. smaller and investments South-South for support including priorities, agency several supports project the in MIGA’sparticipation introducing facilities. while industrial other in use oil, for replicated be can on that techniques manufacturing lean state-of-the-art, over-reliant is which economy, Iran’s diversify help to expected is project The highways major transport. to rail and access easy within Azerbaijan, East Tabriz, in Area Investment Industrial Sofian the in located strategically site, five-hectare a on constructed be will facility The markets. European to go will which of percent year,80 per bags million two to up produce will plant automated highly and integrated new,The vertically products. chemical and food packaging for primarily used are bags, jumbo and big or containers, bulk intermediate flexible as known bags, The containers. polypropylene large of export and production the for facility manufacturing integrated fully a of establishment the involves investment The MIGA’s under issued guarantees Program. Investment Small new first the of one represents It years. 10 to up period a for disturbance, civil and war of risk the against protects guarantee The shares. remaining the own nationality Iranian and Beste ve Bafi Goni Shirkete to loan Bendiye Cesur. Cesurshareholder Packaging of Turkey and owns 48 percent of the company, in, while investors of dual Turkish earnings retained future in, million investment $5.23 equity its Turkeyfor of Corporation Packaging Cesur to guarantee million $5 a issued has MIGA CorporationCesurPackaging Holder: Guarantee CesurShirkete Project: Activities

Jordan Iran Country Guarantees projectalsomeets MIGA’s objective increasingof itsexposure theinMiddle Eastand North Africa region. The infrastructure. on focus strategic agency’s the with consistent is project the in MIGA’sparticipation country.the in project infrastructure public a of management and financing in partnership public-private first the also but Jordan, in project BOT first the only not is This in conditions areas. surrounding environmental and health the improve help will plant the quality, water the by improving to issue addition environmental In water. clean serious into a discharged being rectify is water and treated poorly Currently,wastewater.address processing also will plant treatment The use water. industrial and potable agricultural of decreasing by water drinking up free will wastewater treated of use The 2.3 approximately of people). million population combined a (with areas Zarqa and Amman the from wastewater treat the in will water,and growth of m3 267,000 economic of capacity daily sustainable average an to have will plant impediments MIGA-supported country.The biggest the of one is The Jordan world. in the in water countries of water-deprived scarcity most 10 the of one in need critical a supports project This only.1 phase MIGA’sfor 2025. is to guarantee 2015 from demand meet to plant the of expansion an of consisting 2 phase and 2015, through demand local the satisfy to designed 1 new a of financing phase with phases, two into divided is plant and the of construction The system. treatment water inadequate maintenance, operation, and overloaded existing an of site the on construction, built is plant new The As-Samra. in plant treatment wastewater design, the of consists project The contract. of breach per of risk the against a years 15 to and up of period a plant MIGA’sfor bond. is formance guarantee water the in investment equity an in cover million, agreement $4.1 (BOT) totaling guarantees, The build-operate-transfer Jordan. 25-year a under plant, treatment wastewater a of struction their con the for covering is S.A. investment The Limited. Environnement Company TreatmentPlant WastewaterSuez As-Samra and in investment Inc. Degrémont Infilco to guarantees issued has MIGA S.A. Environnement Suez Degrémont, Infilco Holder: Guarantee WastewaterAs-Samra TreatmentProject: CompanyLtd. Plant countries. developing among investments MIGA’ssupporting with of aligned priority is project This effect. demonstration strong a have to expected is which governance, corporate of standards high to venture joint the subject will sponsors project the of supports also project The role and feedstock. lending cross-border the addition, the In creation. job for ultimately and zone, free the source of development primary the as field gas Pars South the from gas the special economic zone. The project will contribute to government of revenues through the use area of natural development petrochemical the in hectares 13.1 occupy will plant The China. to primarily HDPE the export to plans year.project per The tons metric 300,000 to up of capacity a with plant polyethylene high-density a of operation and construction the involves project petrochemical MIGA-guaranteed The polyoelfins. producing of cost 2009. through low year comparatively the a to exporter,due percent largest world’s 7 the becoming of in fast is average East Middle particularly an the Meanwhile, by world, grow the to of expected parts is most demand in where rise Asia, the on Northeast is HDPE for Demand bags. trash to detergent laundry and juice, milk, of packaging from and carpets, to parts automotive from applications, of range broad a in used polymers versatile low-cost, are (HDPE), polyethylene high-density including Polyoelfins, polyolefins. of production the for supply cost-effective a provide will industries—which related other and complex located in the Pars Special Economic/Energy Zone—established to develop gas, petrochemicals, to effort an gas In Pars field, a South giant offshore gas reserve percent. in the the Persian Gulf. The gas developing will 15 be processed at is a nearby gas separation government roughly Iranian at the oil, from world, away the exports country’s in the diversify reserve gas natural largest second the holds Iran (cont’d) Activities

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53 operational overview

54 operational overview Gaza Bank/ West Lebanon Jordan Egypt Country TechnicalAssistance Regional technical assistance programs, initially in Mozambique, Senegal, and Sierra Leone. Sierra and Senegal, Mozambique, in initially programs, assistance technical MIGA ongoing in assistance of provide will range ICIEC addition, a In Cameroon. in and Sudan in assessments starting countries, needs undertaking in MIGA support will ICIEC Specifically, Africa. Saharan sub- and Asia, South Africa, North and East Middle the of countries member ICIEC the in intermediaries promotion investment benefit to initiative joint a of development the explore Credit—ICIEC—to Export and Investment of Insurance the for Corporation Islamic The with discussions launched recently MIGA conferences. investor for preparation as such areas specific certain in and level strategic broader a at both assistance, additional for MIGA and approached has and public plan, emergency the leading implementing currently 30 is PIPA stakeholders. private approximately by and PIPA), of Chairman the the by also attended is (who was Economy retreat of The Minister plan. the for necessary resources financial and on human and the withdrawn, has identifying Israel which from areas the in particularly investments, attract to one-year PIPA for emergency plan an formulating on focused retreat The PIPA. for retreat strategic two-day a ducted con and organized MIGA Economy, of Minister Authority’s Palestinian the of request the at and in 2005, (PIPA) Agency Promotion Investment Palestinian the of assessment needs MIGA a on up Following future. near the in proposal assistance technical a of development the the in facilitate to expected Lebanon also and is It MIGA promotion. investment between of needs area in cooperation a future discussed for be framework will a conducted as assessment serve The and IDAL Lebanon. agency—MIGA with to depth FDI promotion attract to capacity investment agency’s the of country’s assessment IDAL—the of request the At country.the for program assistance technical a develop MIGA help will and JIB, with cooperation future potential for framework a established assessment Trade.The and Industry of Ministry country’s the and JIB from request a following (JIB), Board Investment Jordan the of assessment needs a conducted MIGA development, content and design web things, revisions. structure organizational other and systems, information investor among on, focusing activities, out carried GAFI Subsequently,implementation. discussed review,and institutional an on based GAFI, to ommendations rec and feedback provided MIGA strategies. sub-sectoral of development the and development; strategy promotional general plan; business building; capacity promotional institutional as such topics covering Authority for Free Zones and Investment (GAFI). This long-term, in-depth program includes nine modules General the of capacity institutional the develop help to Egypt to assistance technical its continued MIGA Activities - - At year-end, MIGA’s gross guarantee exposure stood at $872.9 million, 16.3 percent of the agency’s outstanding outstanding agency’s the of percent 16.3 million, $872.9 portfolio. at stood exposure region. the guarantee in gross projects MIGA’s assistance year-end, technical At 13 undertook and guarantees 21 provided MIGA year, fiscal the During sector.gas and oil the in concentrated was FDI where Angola, and Nigeria notably countries, resource-rich were FDI of levels high receive to continued that region the in countries other The Africa. South in acquisitions large two of because mainly 2005, in significantly increased Africa sub-Saharan of development the in FDI expansion. this to factors contributing key reforms, been have conflicts of incidence the in fall a and trade, intra-regional structural difficult of Years rates. growth positive recording countries all virtually with 2004, in than slower slightly 2005, in percent 4.1 by grown have to estimated is Africa sub-Saharan of economy The Africa Sub-Saharan

Angola Country Guarantees an IDA-only country, and rebuilding in a post-conflict nation. post-conflict a country,in IDA-only rebuilding an and MIGA’s participation in this project reflects several of the agency’s strategic goals, including investment in services. construction for demand growing of advantage take to ability the capital, to access limited with contractors, local smaller while give also will market effort, rental the rebuilding the into of expansion Equipment’s pace Barloworld resources. the natural country’s up the in pick investment new help encouraging will equipment construction heavy of availability increased The conflict. the during destroyed were which of buildings—many commercial and residential and roads, as such infrastructure basic of lack significant a remains There reconstruction. fund could that revenues tax contribute to base investment direct foreign limited a including remain, challenges conflict Post- upheaval. and violence of years 27 following 2002 in ended war civil Angola’s peace. country at recently only a for efforts rebuilding and reconstruction the in help will Equipment Barloworld of growth The industries. construction and mining the includes that base customer a has and equipment, forklift sells also company The Store. CatRental the of establishment the for dealership exclusive with market rental the the into move to Equipment, Angola, in equipment generation power Barloworld and earthmoving Caterpillar allow will also expansion an in The site current complex. its on industrial buildings pre-fabricated the replace to involves facility permanent expansion a The of capital. construction nation’s the the Luanda, of south just facility permanent a of construction the includes which Angola, in dealership equipment earthmoving its expanding is Equipment Barloworld loan. the of repayment following 2004 June in expired loan shareholder investor’s the protecting guarantee tional addi An 1999. in issued originally was that project the in investment a equity for investor’s the replacement on a guarantee is This disturbance. civil and war and expropriation restriction, transfer of of risks the against protects subsidiary years, three a for coverage, The Limited, Angola. of Limitada UK Angola Equipamentos Barloworld Equipment to Barloworld to loan shareholder and in investment equity guarantee million $16.34 its covering Africa, South of Limited Barloworld million $14.7 a issued has MIGA Limited UK Equipment Barloworld Holder: Guarantee Limitada Angola Equipamentos Barloworld Project: Activities

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55 operational overview

56 operational overview Ghana FasoBurkina Country Guarantees (cont’d) mitigated. properly are risks when return of rate strong a bring can projects such that investors private other to demonstrating while shortage, housing the address help will that investment private critical a is looking to purchase homes, and this number could soar even higher as earning power increases. Meridian are Ghana urban in families million one to close that suggest estimates Some ranges. price affordable in particularly demand, with up keep to able been not has sector housing country’s The growth. population urban rapid experiencing is countries, sub-Saharan other like Ghana, when time a at comes project The future. 100,000 to up of construction the the for pilot a considered is include which stage, first the cover guarantees MIGA The Ghana. throughout project homes the of stages Later homes. family single four-bedroom, to premium houses medium-cost three-bedroom, to houses low-cost two-bedroom, from prices, of range wide a at offered styles housing of variety a feature will neighborhood new the complete, metropolis. Accra-TemmaOnce crowded the in homes 1,000 approximately of construction the in result will Trusthousing phase Insurance first National This Security (SSNIT). Social Ghana’s affordable with venture joint a large as project a of phase first the build and develop will Meridian investment, Metro’s With contract. of breach and disturbance, civil and war expropriation, restriction, transfer $2 of risks the its against cover and years five covering for are guarantees Meridian The to Ghana. Malaysia in interest) Limited Development of in million Bhd. $1 (plus Sdn. loans shareholder Ikram million $4 Metro and in to investment equity million guarantees in million $6.3 issued has MIGA Bhd. Sdn. Ikram Metro Holder: Guarantee Limited Development Meridian Project: Africa. in poorest the supporting including priorities, agency several with aligned also is is Worldthe with which consistent Faso.Burkina help to strategy Group’s Bank growth, MIGA’s project the in participation export-oriented country’s the strengthen to expected is project the of support MIGA’s company.sector private a to stake, percent 35 a has government monopoly,the former which the in from risk financial sector’s cotton the of part significant a shifting by management finance public of improvement the also to is contribute project to The expected area. monopoly a commercial previously was allowing what by in operate sector and cotton assets the purchase to liberalize operators to efforts government’s the of part is project The Diapaga. in operation of year second the of end by operational and constructed be will unit ginning new a addition, In operation. of year first the in tons Fada,million 35,000 to in tons million plant 23,000 from capacity ginning increasing thus cotton existing an upgrading of consist will project the of aspect expansion The Société enterprise, project the in investors. Burkinabé and growers shares cotton local by Gourma, of Cotonnièredu acquisition the local of of financing promotion the the (3) through and Faso; Burkina entrepreneurship eastern in capacity ginning cotton the of expansion and modernization the (2) operator; commercial a by country the of region eastern Textiles,the Fibres in des monopoly,Société former the of assets ginning cotton the of acquisition the (1) of consists project The years. four to up of period a for disturbance Gourma, du Cotonnière Société enterprise, Burkina Faso.project The the guarantee covers against the in risks of breach of contract, expropriation, shares and war and civil of acquisition the finance to entities of (DAGRIS) local to S.A. loans extend Sud to them enable to institutions Agro-Industries financial local to to guarantee loan million its France,covering $6.1 of total a for guarantees four issued has MIGA S.A. Sud Agro-Industries Holder: Guarantee FasoBurkina Gourma, Cotonnièredu Société Project: Activities

Kenya Ghana Ghana Country Guarantees

(cont’d) and restriction, disturbance. civil transfer and war expropriation, of risks the against years eight to up of period a for loan, holder non-share the for percent 95 about and equity the for percent 90 to up are percentages guaranteed The Kisumu. of east kilometers 10 than less Kibos, in factory sugar new a Allied for is and investment Sugar The Kenya. Kibos of Limited to, Industries interest) in million $.5 (including loan non-shareholder million $6.5 and in, investment equity million $.5 the their covering and Limited Africa national, South of CorporationKingdom Development Industrial United a Chatthe, S. R. Mr. to guarantees in million $6.7 issued has MIGA Limited Africa South Corporationof Development Industrial Mr.Chatthe; Holder: S. Guarantee R. Limited Industries Allied and Sugar Kibos Project: development. sector private stimulating by poverty eliminate to aims which Ghana, for Strategy Assistance Country Group’s WorldBank the complements also MIGA’sguarantee Africa. in poorest the supporting including orities, pri agency several with aligned is project the in participation MIGA’scountry. IDA-eligible an is Ghana year.per million $400 over of earnings average with Ghana, in earner exchange foreign highest third the is industry tourism The operation. tour and hospitality, and food transportation, in involved nesses create an estimated 50 new jobs over the next three years, and is expected to fuel the growth of local busi will hotel the addition, In tourists. more attracting and competitive remain to standards their improve to city the in hotels other leading thereby price, reasonable a at accommodations higher-quality providing The hotel is expected to have a number of direct and indirect benefits for the local economy. These include restriction. transfer currency of risk the against covers and construction of a new the hotel (Atlantic Holiday Resort) finance in Accra. The guarantee will is for a period funding of seven years industry.The tourism the in company a to financing long-term provide to bank local the enable to Ltd. Ghana Bank Barclays to loan nonshareholder its France,covering of Economique MIGA has issued $3.5 million in guarantees to Société de Promotion et de Participation pour la Coopération CoopérationEconomique la pour Participation de et Promotion de Société Holder: Guarantee Ltd. Ghana Bank Barclays Project: mortgage primary Ghana’s develop to sector.finance housing and market working is IFC the com more Meanwhile a sector proposition. housing Ghanaian investment the pelling make will that reforms for way the pave will study the that hoped is it Ultimately,a deficiencies. develop institutional to and market is fundamental goal these The of understanding market. better housing Infrastructure Ghana’s of Public-Private study the broad a with on embarking conjunction is Facility, in Advisory MIGA, phase, pilot Meridian’s with Concurrent market. housing private Ghana’s in growth preventing are that issues financial and regulatory, legal, overarching the of some tackling resolving while to stock to adding housing and the available approach options housing more making government-backed at aimed is multi-pronged effort The a crunch. in housing Ghana’s step first the is project Meridian The (cont’d) Activities

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57 operational overview

58 operational overview Madagascar Kenya Country Guarantees In Madagascar, DAGRIS’s project involves the privatization of HASYMA, the majority state-owned cotton state-owned majority the HASYMA, of Madagascar,privatization In the involves project DAGRIS’s war disturbance. and civil and expropriation, restriction, transfer currency of risks the against covers and years eight to up of and providing technical and financial ginning assistance to Malagasy cotton growers. MIGA’s cotton guarantee is for a in period engaged enterprise an (HASYMA), S.A. Malagasy Hasy to, loan shareholder and totaling guarantees two issued has MIGA S.A. DAGRIS, Holder: Guarantee CottonGinning HASYMA Project: the in petitiveness. poverty com and reduce productivity to agricultural increased aims support and which communities, strengthen Kenya, areas, in rural poorest Strategy Assistance Country and Group’s investments, Bank South-South World supporting the of priorities MIGA’s with aligned is project the Africa. addition, in In presence agency’s the increasing of objective strategic MIGA’s with consistent is project The thus areas, rural in created be will poverty. absolute jobs alleviating these importantly, More cane. of cultivation the in jobs alized annu and permanent 3,416 and factory the in jobs permanent 250 sugar create to of expected also substitution is It the imports. through savings exchange foreign of source important an represent will This sugar.imported on reliance country’s the reduce and domestically sugar of supply and production the in self-sufficiency Kenya’s to contribute to expected is project The operation. to inception from project the manage to team experienced an and technology new with operate will project The region. Kisumu the in industry farming sugarcane the of economy the rejuvenate to anticipated is project MIGA-supported The economy.local the on impact negative a to led production sugarcane local of neglect subsistence farming. In the Kisumu region, the closure of the local mill in Miwani in 2001 and subsequent uneconomic to turned have time, one at cane of cultivation the from income on relied who farmers, local as industries sugarcane regional of stagnation and decline the to led a has This investment. and inward of lack technology outdated from suffers and state-owned mainly is industry local The demand. current meet to failed has production local while grown, has Kenya in consumption sugar years, five last the In region. Kisumu the in industry farming sugarcane the revitalize to expected is project The people. million 4.5 approximately of size market total a representing traders and wholesalers via radius Kisumu km 100 a within the areas rural surrounding to to and market supplied be to 2,000 expected is to sugar up The factory. cultivate the for will feedstock who as area sugarcane of project hectares the in growers small support sugarcane also will irrigated of factory The hectares 2,000 estates. and factory sugar greenfield a establishing involves project The (cont’d) Activities project is also aligned with the agency’s aim to improve access to financing options for local SMEs. SMEs. local for options financing to access improve MIGA’sProgram. through Investment underwritten Small was HASYMA to aim agency’s the the with in aligned participation also MIGA’s is country. the project in growth sector private encouraging by growth broad-based MIGA’sCountryStrategy,Madagascar’s Assistance complement guarantees promoting on focuses which families. farm 35,000 around for livelihoods provide to expected is project industry.cotton the to goods supply that The businesses local stimulating to addition in jobs, permanent fiber, seeds, and by-products on the local and international markets. The project is expected to create new cotton market and cotton; seed gin and purchase seed; cotton of production the promote will HASYMA investors. private domestic selected and producers cotton local to incentives and assistance, advice, technical providing by and HASYMA; of capacity ginning cotton the expanding and modernizing by Madagascar in industry cotton the of expansion the towards contribute sector.cotton the in to monopoly.growth expected sustainable is create project to The is aim ultimate Its

e 2.6 million to DAGRIS, S.A. to cover its equity investment in, investment equity its cover to S.A. DAGRIS, to million 2.6 - - Nigeria Madagascar Country Guarantees

For more information, visit www.miga.org/econet.visit information, Formore million. 2.7 of excess in base subscriber active an has and Nigeria in ations oper commence to operator GSM first the was Limited Networks Vee license. 15-year a under network, The project involves the installation, operation, and maintenance of a countrywide GSM mobile telephone Limited. Wireless Econet as known previously project, and war and expropriation, the for Ericsson restriction, to issued guarantee of contract (2002) earlier an replaces contract This transfer disturbance. civil currency of risks the against covers and years eight to of loan up of period a non-shareholder for is guarantee its The Nigeria. in Limited covering VeeNetworks to AB interest, including million, Credit $73.7 Ericsson to guarantee million $45 a issued has MIGA CreditAB Ericsson Holder: Guarantee VeeLimited Project: Networks Africa. in countries IDA-eligible supporting and SMEs, local for options financing to access improving exchanges, the in investment South-South of participation promotion the MIGA’sincluding priorities, agency country. several with aligned also the is project in growth sector private encouraging by growth broad-based MIGA’sCountryStrategy,Madagascar’s Assistance complements guarantee promoting on focuses which workforce. local the and materials and hospitality, and food transportation, tour operation. The modernization and expansion of the buildings will be carried out with locally available like industries local of growth the support also will hotel The e estimated an generate to expected is project locally.The filled be will which of majority the jobs, manent and direct of number a have economy.per local 35 the than for more benefits create indirect to to expected is hotel the of expansion The expected is hotel the of expansion and modernization the addition, In country.the to tourists of numbers greater attracting thereby competitive, remain to standards their improve also city the in hotels other as effect demonstration a have will This price. reasonable a at accommodations higher-quality with tourists and travelers business provide will hotel the of expansion and modernization, acquisition, The countries. Asian France,and from Mauritius, tourists and travelers business includes clientele target the meet not does Madagascar, growing demand of tourists visiting the country—up 58 percent in 2004 compared of with 2003. The hotel’s capital the Antananarivo, in accommodation of supply current The hotel. the upgrade and modernize to incentive further owners new has brought the hotel operating company and the building under the same ownership, which will give the Malagasy capital, within 100 meters of the Presidential Palace and the Ministry of Finance. The acquisition the of heart building the in situated hotel 3-star existing an is Louvre du the Hotel located. is hotel the where land and owns which S.A., d’Antaninarenina Immobilier Société and Louvre, du Hotel the operates which Louvre, du Hotel Grand of acquisition the involves Madagascar in project International’s Louvre disturbance. civil and war and expropriation, restriction, transfer currency of risks the against covers and Madagascar.of Louvre du Hotel Grand in years investment five MIGA’sto up of period a for is guarantee a issued has MIGA Ltd. International Louvre Holder: Guarantee Madagascar Louvre, du Hotel Grand Project: Activities 735,000 in taxes during the next five years. five next the during taxes in 735,000 e 1.8 million guarantee to Louvre International Ltd. of Mauritius to cover its equity equity its cover to Mauritius of Ltd. International Louvre to guarantee million 1.8

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59 operational overview

60 operational overview Nigeria Nigeria Country Guarantees loan, as well as loans from various financial institutions totaling $25 million. Under the new structure, structure, million. new $67.2 to amounting contributions the equity through project the Under fund Cotecnawill million. $25 totaling institutions financial various from loans investment. as of well shareholder as million form loan, $10 the a in contribution, equity changes million $20 a reflecting included structure S.A., financial Cotecna the Originally, to 2003) (in issued contract previous a million equity investment in Cotecna Destination Inspection Ltd. Nigeria. The guarantee contracts replace $67.2 its for Switzerland of S.A. Cotecna to million $54.9 of total a for guarantees two issued has MIGA CotecnaS.A. Holder: Guarantee Nigeria Limited, Inspection CotecnaDestination Project: development. and growth to obstacles remove Country Group’s Bank World the with to efforts reform government’s the support to is which of thrust main the Nigeria, in Strategy Partnership consistent also is project The live. poorest world’s the of some where Africa, in country IDA an in MIGA’sinvestment of an one is addresses it project areas: The priority processes. screening and valuation goods import modernize customs and in the reform country. further The to project Nigeria is also of expected to government contribute the towards greater help in will Nigeria’s MIGA project, this supporting By to expected are staff local other and officers project. the during training appropriate receive service customs 350 than more addition, In and smuggling. graft for opportunities fewer and taxes, and duties of assessment better to due on collection, expected revenue also is impact positive and direct A congestion. port of reduction significant a physically, in inspected resulting be to have that containers of number the reducing by efficiency port increase and country; the in investments of development the to contribute trade; facilitate to expected is project The and seaport Harcourt Port seaport, Onne border. land the Idiroko and airport, in services these provide to company project the allow with conjunction in procedures will government Nigerian the with agreement build-own-operate-transfer seven-year handling A agencies. Nigerian cargo design System and UNCTAD; Automated by the approved into Data data all Customs for transfer system; management risk computerized imported a goods maintain implement, of and design, scanners; behalf x-ray operate and government’s install, procure, the will company on project The Nigeria. inspection into and verification the involves project The disturbance. civil and war and covers restriction, transfer currency and contract, of breach years of risks the 15 against to up of period a for is guarantee The Nigeria. in Ltd. Scanning SGS in investment equity its covering SA Surveillance de Générale Société SGS to guarantee million $26 a issued has MIGA SA Surveillance de Générale Société SGS Holder: Guarantee Ltd. Nigeria Scanning Project: Activities For more information, visit www.miga.org/cotecna1.visit information, Formore Nigeria. in sites land-border four and airports four ports, six in centers scanning ray expropriation, contract, of X- container of breach establishment the involves of project The disturbance. risks civil and war the and restriction, transfer against and years seven of period a for is coverage The

Sierra Leone Sierra Leone Sierra Country Guarantees (cont’d) goods. foreign of importation illegal from industries local protecting and enforcement effective more capabilities by detecting, controlling, and preventing the movement of prohibited goods, thereby ensuring anti-smuggling Leone’s Sierra improve will security.project internal The improve and revenues, ernment gov enhance smuggling, reduce to exports and imports all scan to are project the of objectives main The Department. Customs and Revenue Government’s British the and International Security Maritime Port with joint-venture a formed has Intertek project, the BOOT The of Forimplementation concession. staff. the local for program training a by (BOOT) underpinned is project the of component build-own-operate-transfer 10-year a under Leone Sierra in Kissy and Freetown,Nitti, of ports the for compliance security port on advice as well as Leone, Freetown,Sierra of The project involves the installation of a scanner and provision of container scanning services for the port MIGA’sProgram. under Investment issued Small was currency of risks the policy The years. against 10 to up of is period a for disturbance civil and coverage war and expropriation, MIGA’srestriction, transfer Intertek. SL in investment equity million $3.09 for Kingdom their United the of Limited International Intertek to guarantee million $5 a provided has MIGA Limited International Intertek Holder: Guarantee Intertek SL Project: agreement. licensing the of viability and integrity the ensure help will that process a laws, cation telecommuni country’s the reform to efforts new country,through the in active also is Bank World The development. business small local supporting and in investors, smaller investment assisting nations, new conflict-affected encouraging priorities: agency several supports project the in participation MIGA’s poverty.reduce and base economic country’s the up build to effort the of part important an and wireless capabilities will encourage more local business start-ups and more foreign direct investment, Internet high-speed low-cost, of availability the that expected is It needs. development multiple with and conflict violent of history recent a with Africa, in nations impoverished most the among is Leone Sierra outages power regular despite generators. back-up of system own its running country,installing the is across PCSH network the keep To Freetown. capital, the in sites three from where the only available Internet service is slow and connections spotty. The company will initially operate country,the in void a filling service, telephone international and local reliable and 2MBps to up of speeds one of the lowest teledensities in the world. The project enterprise, PCSH, will offer broadband Internet at with nation a Leone, Sierra in Internet) the over made be to calls phone (allowing network IP voice-over a and access wireless broadband state-of-the-art line, fixed of establishment the involves investment The to up period a MIGA’sProgram. under Investment issued Small for guarantee first the represents It years. disturbance, three civil and war and expropriation restriction, transfer of risks the against protects that package standardized a is guarantee The percent. 15 remaining the partner,owns Firstcom, Sierra Leone Ltd. of Sierra Leone. Sierra-Com owns 85 percent of the company, while a local Sierra Leonean MIGA has issued a $3.4 million guarantee to Sierra-Com of Israel for its equity investment in PCS Holding Sierra-ComLtd. Holder: Guarantee Ltd. Leone Sierra Holding PCS Project: Activities

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61 operational overview

62 operational overview Uganda Leone Sierra Country Guarantees mation, visit www.miga.org/afriproduce1.visit mation, infor Formore Uganda. in facility processing coffee a of operation the involves project The turbance. dis civil and war and restriction, transfer expropriation, of risks the against protects coverage The 2010). in (expiring unchanged remains tenor guarantee The MILLco. by owned is which KyogaLtd., to facilities warehousing and processing Ugacof’s of sale the reflects contract guarantee new The Ugacof. subsidiary Ugandan in investment its for Islands Virgin British the of Afriproduce to 2005) in (issued contract previous a replaces guarantee The Ltd. Kyogain investment equity its covering Limited MILLco to guarantee million $2.97 a issued has MIGA Limited MILLco Holder: Guarantee KyogaLtd. Project: country.the in development sector private supporting by levels poverty of reduction and growth economic sustainable achieve to aims which Leone, Sierra for Strategy CountryAssistance WorldGroup’s the Bank with line in country.is post-conflict project eligible, MIGA’sthe for support IDA- an is Leone priorities—Sierra agency several with aligned is project MIGA’sthis in participation otherwise. facilities port partners’ trading to access denied be would exports country’s The markets. international to Leone Sierra from exports facilitate to expected is framework international the Compliancewith Organization. Maritime International the of Facilitycode Port Security and Ship International the by prescribed requirements security international new with comply country the help will project MIGA-supported The (cont’d) Activities

- - Mozambique Mali Ghana Country TechnicalAssistance Sierra Leone Sierra Senegal APIX investment promotion efforts. In addition, Senegal is a participating country in MIGA’sEnterprise in country participating a is Senegal addition, In efforts. promotion investment APIX facilitate to system tracking investor electronic effective an install to funding USAID secure APIX MIGA helped efforts. also capacity-building is its in agency,MIGA promotion follow-up. investment national ongoing Senegal’s and APIX, assisting investments in resulted have programs outreach The (Turkey). industry textile and apparel the in one (France),and sector ICT the in one year; fiscal the during country the by organized programs outreach major two supported MIGA Partnership, MIGA-Swiss the Through private Partnership. MIGA-Swiss the the in participant a to sector.also was Mozambique services delivering institutions sector private and government key to assistance provides project The HIV/AIDS. against fight the in firms help to designed component social a and line, credit a access, market enhanced services, consultancy and advisory of delivery improvement, competitiveness targeting basis, the matching-grant a of on Some enterprises, to zone. support in direct Beluluane include the features program in innovative project’s development infrastructure sector industrial of private main installation the the is be today, to Mozambique considered project, the of Center. element Promotion central Investment A country’s the of progress Mozambique, monitoring in and Project recommendations Development providing Enterprise an on Group Bank World the with working is MIGA sectors. public and private the both from participants 80 about by attended and February,in USAID by hosted workshop a at discussed were results Preliminary exercise. benchmarking MIGA’senterprise in participated also Mali USAID, from financing agency.With the for officer executive the on government the advised chief MIGA a of appointment and selection and structure, organizational framework, effort, institutional an of creation this of part As efforts. investment guide to and tunities, oppor investment its on information disseminate country the help to agency promotion investment an of establishment the on Mali of government the advise to program multi-year a implementing is MIGA country.the in industries key six examined MIGA’swhich of exercise, findings benchmarking nology sector in Ghana. Last, the agency met with the Ghana Investment Promotion Center to discuss the the government of Ghana and the World Bank a major study of the information and communication tech an investment promotion seminar attended by more than 100 investors. MIGA is also co-sponsoring with from and investment and Ghana to investors Chinese more by visits fact-finding planned several include attract accompanying effort this of Results to China. efforts China, Ghanaian in helping fairs as well as investment delegation, apparel Ghanaian a in coaching participated staff In program, China. this to of program outreach support investment an co-financed MIGA initiative, the under year United the This and States. EU the with agreements access trade privileged the by generated opportunities to paid attention particular economy,with international the into better integrate to opportunities identify Ghana helping is MIGA initiative, the year.Under fiscal this concluded successfully that government Swiss the by co-funded program facilitation investment an Partnership, MIGA-Swiss the in participant a was Ghana Activities (cont’d) functions. promotion investment and trade two with institution dynamic a by replaced be to expected is corporation The SLEDIC. defunct) (but existing still the of dismantling the and climate investment the in improvements expected are intervention joint deliverables the from primary The (SLEDIC). Corporation Investment and Development Export Leone Sierra the of capacity the build and restructure help WTO/UNCTAD),Tradeto (ITC, International Center the and FIAS with along program, assistance technical integrated an undertake to year this agreed MIGA Program. Benchmarking - -

63 operational overview

64 operational overview Tanzania Africa South Leone Sierra Country TechnicalAssistance Uganda

Swiss Partnership initiative, which financed investor outreach programs in Ghana, Senegal, Tanzania, Senegal, February,MIGA’sin with launched pre concurrently formally Ghana, was project Uganda MIGA- in The Mozambique. and programs successful outreach the investor after financed modeled which is initiative, and Partnership Agency funded Swiss is Development program Austrian The the from opportunities. grant these a of through advantage taking in offer investors to and potential Uganda, to in offered assistance opportunities to community investment international the the of draw attention to programs outreach effective implement authority the help to aims program The Authority. year,Promotion fiscal Investment the Uganda During the to assistance technical provide to agreed MIGA industry.the in environment investment the of reform considerable encouraged and supported, mobilized, has program various investments—this other to for addition In Tanzania. in industry the of investments—including a landmark privatization growth of a major hotel that had a positive demonstration the effect supporting in has effects program outreach far-reaching tourism had Tanzania The Partnership. MIGA-Swiss the of sector umbrella tourism the the under in Tanzania falls to assistance MIGA’s program. outreach to how investor on effective points an study discussion conduct case and insights in-depth useful an provides study finalized The year.MIGA this Tanzania series, in tourism publication on Development” in “Investing its of part As regional three for intermediaries. promotion assessment investment needs a and Africa, South into flows FDI of assessment an fieldwork, launch of the included year fiscal the of during Work restructuring program. the promotion investment guide national to country’s department the the to program work and strategy promotion investment an a strategy and structure to promote inward investment into the country. MIGA’s role focuses on delivering MIGA began a joint project with FIAS to help the South African Department of Trade and Industry develop program. SIP new the including business, MIGA’sPRI to closely relates and countries, conflict-affected of needs the addressing to approach vative country.the for structure promotion investment inno new an a represents develop program to This aims that program multi-agency a in part taking the and SLEDIC, on for program Industry capacity-building and and Traderestructuring of Ministry the with agreement an reaching on concentrated year this Work development. sector private via growth private sectors to maximize the impact of private sector reform and to improve productivity; and promote business climate and facilitate private sector development in Sierra Leone; build capacity in the public and of the United Kingdom and comprises one component of a program by the three agencies to: improve the MIGA’s work under this project is supported by a grant from the Department for International Development (cont’d) Activities senting its draft Uganda benchmarking report to authorities in the country.the in authorities to report benchmarking Uganda draft its senting - - Regional Country TechnicalAssistance tunities arising from increased African trade access to the US market through the African Growth and and Growth Agreements. Arms But EverythingAfrican Cotonouand the through markets the European to and Act Opportunities through market US the to access trade African increased from oppor arising new tunities offering industries to given was attention special and term, near the in investments to attract likely most deemed countries selected the in industries those post-investment on fell provide focus program’s and The follow-up. programs, linkage investment and capacity supplier intermediaries’ establish the investors, built assist program to The investment. attract international to the order to in information community this investment disseminate to country and each in attractions bodies investment market government and and profile to the associations with worked private-sector MIGA relevant with investment. and attract to intermediaries community investment international the to attractions investment their profile Tanzania—to and Senegal, Mozambique, countries—Ghana, African fast- reforming selected four in intermediaries promotion investment strengthen to program assistance technical During the year, MIGA also concluded activities under the MIGA-Swiss Partnership. MSP was a three-year more). for section Overview Operational (see Program Benchmarking the including year, fiscal the during Africa in launch of its new Database Development Project with NEPAD, and the launch of its new global Enterprise initiatives regional high-profile several undertook MIGA Activities -

65 operational overview