miga

The Multilateral Investment Guarantee Agency (MIGA) is an international financial institution which offers political risk insurance and credit enhancement guarantees. These guarantees help investors protect foreign direct investments against political and non-commercial risks in developing countries. MIGA is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States.
A large-scale study on hundreds of active energy projects commissioned by The World Bank Group has concluded that the body is currently financing $21bn of fossil fuel projects, compared to $7bn in the renewables sector. Commissioned by German NGO Ungewald, the study analysed the 675 global energy sector projects which have been funded by Group and are still in operation and are listed in the body’s public databases. It found that for every dollar the Bank currently holds in the clean power sector, it holds three across coal, oil and gas. The author of the study, Intergovernmental Panel on Climate Change (IPCC) member and US-based finance analyst Heike Mainhardt, said the findings served to evidence the fact that The World Bank is “getting around” its 2013 no-coal policy.These figures were reached through analysis of energy project loans to both corporates and countries, finance issued through larger policy based programmes, money transferred for advisory services and other financial assistance to governments in developing nations. The present study shows that the World Bank has not directly financed the construction of new coal-fired power plants since 2013, but it does support such projects through other means. For example, in March 2016, the World Bank Group's Multilateral Investment Guarantee Agency (MIGA) approved a $ 783 million financial guarantee on loans from Deutsche Bank and the Japanese Mizuho Bank. These were intended for the South African energy company Eskom to co-finance a "capacity expansion program". Among other things, the money will be used to finance transmission lines, which will above all transport electricity from new Eskom coal-fired power plants. Thus, the bank avoids its promise to finance coal-fired power plants, and will continue to provide the infrastructure needed to power massive coal-fired power plants, according to the study.
MIGA was established in 1988 as an investment insurance facility to encourage confident investment in developing countries. MIGA is owned and governed by its member states, but has its own executive leadership and staff which carry out its daily operations. Its shareholders are member governments that provide paid-in capital and have the right to vote on its matters. It insures long-term debt and equity investments as well as other assets and contracts with long-term periods. The agency is assessed by the World Bank's Independent Evaluation Group each year.

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