MIGA Oil

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MIGA Oil Gas, Mining, Chemicals
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GUARANTEE PROGRAMPolitical Risk Insurance
(PRI) for Investors and Lenders
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MIGAs mandate

• to promote
• foreign direct investment
• into
• developing countries

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MIGA OIL GAS, MINING, CHEMICALS value of
MIGAs PRI

• World Bank Group franchise - umbrella of
  deterrence
• investors confidence enhanced by MIGAs ability
  to influence governments before a situation
  deteriorates
• resolved numerous pre-claim situations
• only 1 actual claim filed, paid and recovered
• no sovereign counter-guarantee required

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MIGA OIL GAS, MINING, CHEMICALS types of
political risk coverage

• currency transfer restriction and
  inconvertibility
• expropriation
• war and civil disturbance
• breach of contract

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MIGA OIL GAS, MINING, CHEMICALS eligible
investments

• new cross-border investments between member
  countries
• capital expansions / modernizations
• privatizations
• financial restructurings
• plus other structures that might require case by
  case analysis

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MIGA OIL GAS, MINING, CHEMICALS eligible
investors

• nationals of MIGA member countries other than
  host country where investment is being made
• nationals of host country provided funds
  originate from overseas and host government
  approves investment
• corporations/financial institutions incorporated
  in, and operating in, a MIGA member country
• corporations/financial institutions
  majority-owned by nationals of MIGA member
  countries
• state-owned corporations when run on a commercial
  basis

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MIGA OIL GAS, MINING, CHEMICALS investments
and liabilities covered

• equity and quasi-equity
• shareholder loans and loan guaranties
• commercial loans
• other forms of investments
• technical assistance
• management contracts
• leases
• franchising and licensing agreements
• performance bonds
• others

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MIGA OIL GAS, MINING, CHEMICALS terms

• choice of coverage
• equity covered up to 90
• debt covered up to 95
• coverage up to 15 years
• investor has option to cancel policy after three
  years MIGA may not cancel the coverage
• syndication of insurance

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MIGA OIL GAS, MINING, CHEMICALS case study

• Sasol Pipeline Project - Mozambique

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MIGA OIL GAS, MINING, CHEMICALS benefits of
the guarantees

• The benefits of the Guarantees reflect the
  partnership
• with the private sector for the benefit of
  Governments,
• Project Sponsors, and Lenders.
• In this project the Guarantees
• Assisted to mobilize funds from the commercial
  market.
• Assisted in extending the finance period.
• Provided substantial comfort to all project
  participants.

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MIGA OIL GAS, MINING, CHEMICALS how to apply

• one page preliminary application needs to be
  filed before investment is irrevocably committed.
  No fee. Not binding. Confidential.
• definitive application filed when investment is
  committed.

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MIGA OIL GAS, MINING, CHEMICALS contacting MIGA

• www.miga.org
• Oil Gas, Mining, Chemicals department
  1-202-458-1012

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thank you!
www.miga.org