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A P P E N D I X E S86 Governors and Alternates89 Directors and Alternates: Voting Power91 Signatories to MIGA’s Convention92 Fiscal 2001 Budget93 Subscriptions to the General Capital Increase94 Investment Guarantee Guide

100 Contact Points for MIGA

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M I G A A N N U A L R E P O R T 2 0 0 0

Albania ................................ Shkelqim Cani ..................................... Fatos IbrahimiAlgeria ................................. Abdellatif Benachenhou ....................... Omar BougaraAngola ................................. Ana Dias Lourenco .............................. Job GracaArgentina ............................. Jose Luis Machinea .............................. Pedro PouArmenia .............................. Levon Barkudaryan .............................. Karen ChshmarityanAustralia .............................. Peter Costello ...................................... Kay PattersonAustria ................................. Karl-Heinz Grasser .............................. Thomas WieserAzerbaijan ........................... Elman Siradjogly Rustamov ................. Fuad N. AkhundovBahamas, The ....................... William C. Allen .................................. Ruth R. MillarBahrain ................................ Abdulla Hassan Saif ............................. Zakaria Ahmed HejresBangladesh ........................... Shah A.M.S. Kibria .............................. Mahbub Kabir

Barbados .............................. Owen S. Arthur .................................... Erskine R. GriffithBelarus ................................. Gennady V. Novitsky ........................... Vladimir N. ShimovBelgium ............................... Didier Reynders ................................... Gregoire BrouhnsBelize ................................... Said W. Musa ....................................... Keith A. ArnoldBenin ................................... Bruno Amoussou ................................. Pierre John IgueBolivia ................................. Ronald MacLean Abaroa ...................... Bernardo Requena BlancoBosnia and Herzegovina ....... Mirsad Kurtovic ................................... Dragan CovicBotswana ............................. Baledzi Gaolathe .................................. Wilfred Jiwa MandlebeBrazil ................................... Pedro Sampaio Malan .......................... Arminio Fraga NetoBulgaria ............................... Muravei Radev ..................................... Martin Mihaylov ZaimovBurkina Faso ........................ Benoit Ouattara ................................... Patrice Nikiema

Burundi ............................... Charles Nihangaza ............................... Dieudonne NintunzeCambodia ............................ (vacant) ................................................ (vacant)Cameroon ............................ Martin Okouda .................................... Daniel Njankouo LamereCanada ................................ Paul Martin .......................................... Leonard M. GoodCape Verde .......................... Antonio Gualberto do Rosario ............. Jose Ulisses Correia e SilvaChile .................................... Nicolas Eyzaguirre ............................... Mario MarcelChina ................................... Xiang Huaicheng ................................. Jin LiqunColombia ............................. Juan Camilo Restrepo Salazar .............. Mauricio Cardenas SantamariaCongo, Democratic

Republic of ...................... Mawampanga Mwana Nanga ............... Jean-Claude Masangu MulongoCongo, Republic of .............. Mathias Dzon ...................................... Clement Mierassa

Costa Rica ........................... Leonel Baruch G. ................................. Eduardo Lizano FaitCôte d'Ivoire ....................... Seydou Diarra ...................................... Mamadou KoulibalyCroatia ................................ Nenad Porges ....................................... Josip KulisicCyprus ................................. Takis Klerides ....................................... George V. HadjianastassiouCzech Republic ................... Pavel Mertlik ........................................ Oldrich DedekDenmark ............................. Jan Trojborg ......................................... Ellen Margrethe LojDominica ............................. Ambrose George .................................. Ambrose M.J. SylvesterDominican Republic ............ Hector Manuel Valdez Albizu .............. Luis Manual Piantini M.Ecuador ............................... Luis G. Iturralde M. ............................. Alonso Perez-KakabadseEgypt, Arab Republic of ....... Medhat Hassanein ............................... Ahmed Mahrous El-DarshEl Salvador .......................... Juan Jose Daboub ................................ Jose Luis Trigueros

Equatorial Guinea ............... Fortunato Ofa Mbo .............................. Rosendo Otogo MenengEritrea ................................. Gebreselassie Yosief ............................. Gabriel Fassil OgbazghyEstonia ................................. Siim Kallas ........................................... Mihkel ParnojaEthiopia ............................... Sufian Ahmed ...................................... Tadesse HaileFiji ....................................... Mahendra Pal Chaudhry ...................... Savenaca NarubeFinland ................................ Sauli Niinisto ....................................... Inga-Maria GroehnFrance .................................. Laurent Fabius ..................................... Jean-Pierre JouyetGambia, The ........................ Famara L. Jatta ..................................... Dodou B. JagneGeorgia ................................ Zurab Nogaideli ................................... Vladimer Papava

Member Governor Alternate

GOVERNORS AND ALTERNATESJune 30, 2000

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Germany ............................. Heidemarie Wieczorek-Zeul ................ Caio K. Koch-WeserGhana .................................. Richard Kwame Peprah ........................ Victor SelormeyGreece ................................. Yannos Papantoniou ............................. Christos PachtasGrenada ............................... Anthony Boatswain .............................. Timothy AntoineGuatemala ........................... Juan Jose Serra ..................................... Manuel Hiram Maza CastellanosGuinea ................................. Cheick Ahmadou Camara .................... Cellou Dalein DialloGuyana ................................ Bharrat Jagdeo ..................................... Saisnarine KowlessarHaiti .................................... Fred Joseph .......................................... Fritz JeanHonduras ............................. Gabriela Nunez de Reyes ..................... Victoria Asfura de DiazHungary .............................. Zsigmond Jarai ..................................... Gusztav BagerIceland ................................. Halldor Asgrimsson .............................. Geir Hilmar Haarde

India .................................... Yashwant Sinha .................................... E.A.S. SarmaIndonesia ............................. Bambang Sudibyo ................................ Syahril SabirinIreland ................................. Charlie McCreevy ................................ John HurleyIsrael .................................... David Klein .......................................... Avi Ben-BassatItaly ..................................... Antonio Fazio ...................................... Mario DraghiJamaica ................................ Omar Lloyd Davies .............................. Wesley George HughesJapan ................................... Kiichi Miyazawa .................................. Yoshiji NogamiJordan .................................. Jawad Hadid ........................................ Mohammad SmadiKazakhstan .......................... Erzhan A. Utembayev .......................... Zhaksybek A. KulekeevKenya .................................. Chrysanthus Barnabas Okemo ............. Martin Luke Oduor-OtienoKorea, Republic of ............... Hun-Jai Lee ......................................... Chol-Hwan Chon

Kuwait ................................. Ahmed Abdullah Al-Ahmed Al-Sabah .. Abdulmohsen Y. Al-HunaifKyrgyz Republic .................. Sultan Mederov ................................... Urkaly IsaevLao People's Democratic

Republic .......................... Boungnang Vorachith ........................... Phouphet KhamphounvongLatvia .................................. Roberts Zile ......................................... Aigars KalvitisLebanon .............................. Nasser Saidi ......................................... Georges CormLesotho ................................ Kelebone Albert Maope ....................... Molelekeng E. RapolakiLibya ................................... Mohamed A. Bait Elmal ....................... Ali Ramadan ShnebshLithuania ............................. Vytautas Dudenas ................................ Arvydas KregzdeLuxembourg ........................ Luc Frieden .......................................... Jean Guill

Macedonia, formerYugoslav Republic of ........ Nikola Gruevski ................................... Trajko Slavevski

Madagascar .......................... Pierrot J. Rajaonarivelo ......................... Simon Constant HoraceMalawi ................................. Mathews A.P. Chikaonda ..................... Mapopa ChipetaMalaysia ............................... Daim Zainuddin .................................. Samsudin bin HitamMali ..................................... Bacari Kone .......................................... Mahamadou Zibo MaigaMalta ................................... John Dalli ............................................ Joseph SciclunaMauritania ........................... Ali Gueladio Camara ........................... Sidi Mohamed Ould BakhaMauritius ............................. Rundheersing Bheenick ........................ Philippe Ong SengMicronesia, Federated

States of ........................... John Ehsa ............................................. Sebastian L. AnefalMoldova .............................. Mihail Manoli ...................................... Andrei Cheptine

Mongolia ............................. Yansanjav Ochirsukh ............................ Jigjid UnenbatMorocco .............................. Fathallah Oualalou ............................... Ahmed LahlimiMozambique ....................... Tomaz Augusto Salomao ...................... Adriano Afonso MaleianeNamibia ............................... Andrew Ndishishi ................................ Paul Walter HartmannNepal ................................... Mahesh Acharya .................................. Bimal P. KoiralaNetherlands ......................... Gerrit Zalm ......................................... Eveline HerfkensNicaragua ............................ Esteban Duque Estrada ........................ David RobletoNigeria ................................. Adamu Ciroma .................................... Samuel Chukwuma Nwokedi

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Norway ................................ Anne Kristin Sydnes ............................ Sigrun MogedalOman .................................. Ahmed Bin Abdulnabi Macki ............... Mohammed bin Nasser Al-KhasibiPakistan ............................... Mian Tayyab Hassan............................. M. Riyazul HaquePalau .................................... Tommy Remengesau, Jr. ....................... Elbuchel SadangPanama ................................ Victor Juliao ........................................ Ricardo QuijanoPapua New Guinea .............. Mekere Morauta .................................. Koiari TarataParaguay .............................. Federico Antonio Zayas Chirife ............ Anibal Fernando Paciello RodriguezPeru ..................................... Efrain Goldenberg ............................... Alfredo Jalilie AwaparaPhilippines ........................... Jose T. Pardo ......................................... Rizalino S. NavarroPoland .................................. Jacek Tomorowicz ................................ Agnieszka RudniakPortugal ............................... Joaquim Pina Moura ............................ Antonio Nogueira Leite

Qatar ................................... Yousef Hussain Kamal .......................... Abdullah Bin Khalid Al-AttiyahRomania .............................. Decebal Traian Remes .......................... Emil Iota GhizariRussian Federation ............... Viktor Khristenko ................................ Andrei ShapovaliantsSt. Kitts and Nevis ............... (vacant) ................................................ (vacant)St. Lucia .............................. Kenny D. Anthony ............................... Bernard La CorbiniereSt. Vincent and the

Grenadines ....................... James F. Mitchell .................................. Maurice EdwardsSamoa .................................. Tuilaepa S. Malielegaoi ......................... Hinauri PetanaSaudi Arabia ........................ Ibrahim A. Al-Assaf .............................. Jobarah Al-SuraisrySenegal ................................ Makhtar Diop ...................................... Oumar Khassimou DiaSeychelles ............................ Bertrand Rassool .................................. Vilner Calixte

Sierra Leone ........................ James O.C. Jonah ................................. James BucknallSingapore ............................. Richard Hu Tsu Tau ............................. Khaw Boon WanSlovak Republic ................... Ivan Miklos .......................................... Marian JuskoSlovenia ............................... Zvonko Ivanusic ................................... Irena SodinSouth Africa ........................ Trevor Andrew Manuel ........................ Mandisi Bongani MpahlwaSpain ................................... Rodrigo de Rato Figaredo ..................... Juan Costa ClimentSri Lanka ............................. Chandrika Bandaranaika Kumaratunga .. P.B. JayasunderaSudan .................................. Mohamed Kheir Ahmed El Zubeir ...... Sabir Mohamed HassanSwaziland ............................ Noreen Maphalala ............................... Ephraim Mandla HlopheSweden ................................ Bosse Ringholm ................................... Maj-Inger KlingvallSwitzerland .......................... Oscar Knapp ........................................ Walter Hofer

Tanzania .............................. Nassoro W. Malocho ............................ Raphael O. MollelTogo .................................... Simfeitcheou Pre ................................. Kossi AssimaidouTrinidad and Tobago ............ Brian Kuei Tung ................................... Monica ClementTunisia ................................. Fethi Merdassi ...................................... Abdelhamid TrikiTurkey ................................. Selcuk Demiralp .................................. Ferhat EmilTurkmenistan ....................... Seitbay Kandymov ............................... Serdar BairievUganda ................................ Gerald M. Ssendaula ............................ Emmanuel Tumusiime-MutebileUkraine ................................ Yriy Yekhanurov .................................. Sergiy L. TigipkoUnited Arab Emirates .......... Mohammed Khalfan Bin Khirbash ....... Jamal Nasser LootahUnited Kingdom .................. Clare Short .......................................... Gordon BrownUnited States ....................... Lawrence H. Summers ......................... Alan P. Larson

Uruguay ............................... Alberto Bension ................................... Ariel DavrieuxUzbekistan ........................... Makhmudjon A. Askarov ..................... Saidakbar AbdurakhimovVanuatu ............................... Stevens Morking Iatika ......................... Andrew KausiamaVenezuela, Republica

Bolivariana de .................. Gustavo Marquez Marin ...................... Jorge Antonio Giordani CorderoVietnam............................... Le Duc Thuy ....................................... Duong Thu HuongYemen, Republic of ............. Ahmed Mohamed Sofan ...................... Anwar Rizq Al-HaraziZambia ................................ James Mwalimu Mtonga ...................... Stella M. ChibandaZimbabwe ........................... Herbert M. Murerwa ........................... Charles Tawonerera Kuwaza

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Total % ofDirector Alternate Casting votes of votes total

DIRECTORS AND ALTERNATES: VOTING POWERJune 30, 2000

ELECTED BY THE VOTES OF THE SIX LARGEST SHAREHOLDERS:Jan Piercy (vacant) United States 21,115 14.90Yuzo Harada Hiroaki Ishii Japan 9,156 6.46Stephen Pickford Myles Wickstead United Kingdom 6,272 4.43Helmut Schaffer Eckhardt Biskup Germany 5,248 3.70Jean-Claude Milleron Emmanuel Moulin France 5,037 3.55Zhu Xian Chen Huan China 4,511 3.18

ELECTED BY THE VOTES OF OTHER SHAREHOLDERS:Pieter Stek Tamara Solyanyk Armenia, Bosnia and Herzegovina, 9,102 6.42(Netherlands) (Ukraine) Bulgaria, Croatia, Cyprus, Georgia,

Israel, Macedonia (formerYugoslav Republic of), Moldova,Netherlands, Romania, Ukraine

Luc Hubloue Ruth Bachmayer Austria, Belarus, Belgium, 8,467 5.97(Belgium) (Austria) Czech Republic, Hungary,

Kazakhstan, Luxembourg,Slovak Republic, Slovenia, Turkey

Godfrey Gaoseb Girmai Abraham Angola, Botswana, Burundi, Eritrea, 8,128 5.73(Namibia) (Eritrea) Ethiopia, The Gambia, Kenya,

Lesotho, Malawi, Mozambique,Namibia, Nigeria, Seychelles,Sierra Leone, South Africa, Sudan,Swaziland, Tanzania, Uganda,Zambia, Zimbabwe

Terrie O’Leary Alan David Slusher The Bahamas, Barbados, Belize, 6,066 4.28(Canada) (Belize) Canada, Dominica, Grenada,

Guyana, Ireland, Jamaica, St. Lucia,St. Vincent and the Grenadines

Ilkka Niemi a Anna M. Brandt Denmark, Estonia, Finland, Iceland, 5,674 4.00(Finland) (Sweden) Latvia, Lithuania, Norway, Sweden

Federico Ferrer Cecilia Ramos Costa Rica, El Salvador, Guatemala, 5,551 3.92(Spain) (Mexico) Honduras, Nicaragua, Spain,

Venezuela (Republica Bolivariana de)

Khalid M. Al-Saad Mohamd Kamel Amr Bahrain, Egypt (Arab Republic of), 4,811 3.39(Kuwait) (Arab Republic Jordan, Kuwait, Lebanon, Libya,

of Egypt) Oman, Qatar, United Arab Emirates,Yemen (Republic of)

Franco Passacantando Helena Cordeiro Albania, Greece, Italy, Malta, Portugal 4,779 3.37(Italy) (Portugal)

Murilo Portugal Patricio Rubianes Brazil, Colombia, Dominican Republic, 4,631 3.27(Brazil) (Ecuador) Ecuador, Haiti, Panama, Philippines,

Trinidad and Tobago

Yahya Alyahya Abdulrahman Saudi Arabia 4,509 3.18(Saudi Arabia) Almofadhi

(Saudi Arabia)

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Total % ofDirector Alternate Casting votes of votes total

DIRECTORS AND ALTERNATES: VOTING POWERJune 30, 2000

Andrei Bugrov Eugene Miagkov Russian Federation 4,509 3.18(Russian Federation) (Russian Federation)

B. P. Singh Syed Ahmed Bangladesh, India, Sri Lanka 4,293 3.03(India) (Bangladesh)

Bassary Toure Paulo F. Gomes Benin, Burkina Faso, Cameroon, 4,273 3.01(Mali) (Guinea-Bissau) Cape Verde, Congo (Democratic

Republic of), Congo (Republic of),Cote d’Ivoire, Equatorial Guinea,Guinea, Madagascar, Mali,Mauritania, Mauritius, Senegal, Togo

Matthias Meyer Jerzy Hylewski Azerbaijan, Kyrgyz Republic, 3,759 2.65(Switzerland) (Poland) Poland, Switzerland, Turkmenistan,

Uzbekistan

Valeriano F. Garcia Ivan Rivera Argentina, Bolivia, Chile, Paraguay, 3,723 2.63(Argentina) (Peru) Peru, Uruguay

Jannes Hutagalung Wan Abdul Aziz Fiji, Indonesia, Malaysia, Nepal, 3,204 2.26(Indonesia) Wan Abdullah Singapore, Vietnam

(Malaysia)

Inaamul Haque Mohamed Dhif Algeria, Ghana, Morocco, Pakistan, 2,943 2.08(Pakistan) (Algeria) Tunisia

Neil Hyden Lewis D. Holden Korea (Republic of), Micronesia 1,978 1.40(Australia) (New Zealand) (Federated States of), Palau,

Papua New Guinea, Samoa, Vanuatu

In addition to the directors and alternates shown in the foregoing list, the following also served afterJune 30, 1999:

Director End of period Alternate End of periodof service director of service

Khalid H. Alyahya October 31, 1999 Khaled Al-Aboodi January 31, 2000(Saudi Arabia) (Saudi Arabia)

Young-Hoi Lee July 31, 1999 Kiwamu Inoue September 7, 1999(Republic of Korea) (Japan)

Satoru Miyamura May 21, 2000 Michael Marek December 3, 1999(Japan) (United States)

Surendra Singh July 31, 1999 Jean Pesme June 2, 2000(India) (France)

Zou Jiayi January 31, 2000(China)

Note: Australia (1,890 votes), Cambodia (270 votes), Lao People's Democratic Republic (237 votes), Mongolia(235 votes) and St. Kitts and Nevis (227 votes) became members after the 1998 Regular Election of Directors.

a. To be succeeded by Finn Jønck (Denmark) effective August 7, 2000.

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SIGNATORIES TO MIGA’S CONVENTIONJune 30, 2000

Albania *Algeria *Angola *Antigua and BarbudaArgentina *Armenia *Australia *Austria *Azerbaijan *Bahamas, The *Bahrain *Bangladesh *Barbados *Belarus *Belgium *Belize *Benin *Bolivia *Bosnia and Herzegovina *Botswana *Brazil *Bulgaria *Burkina Faso *Burundi *Cambodia *Cameroon *Canada *Cape Verde *Central African RepublicChadChile *China *Colombia *Congo, Democratic Republic of *Congo, Republic of *Costa Rica *Côte d’Ivoire *Croatia *Cyprus *Czech Republic *Denmark *Dominica *Dominican Republic *Ecuador *Egypt, Arab Republic of *El Salvador *Equatorial Guinea *Eritrea *Estonia *Ethiopia *Fiji *Finland *France *GabonGambia, The *Georgia *

* Member country ** Country that has ratified the Convention but not yet completed membership requirements.

Germany *Ghana *Greece *Grenada *Guatemala *Guinea *Guinea-BissauGuyana *Haiti *Honduras *Hungary *Iceland *India *Indonesia *Ireland *Israel *Italy *Jamaica *Japan *Jordan *Kazakhstan *Kenya *Korea, Republic of *Kuwait *Kyrgyz Republic *Lao People’s Democratic

Republic *Latvia *Lebanon *Lesotho *LiberiaLibya *Lithuania *Luxembourg *Macedonia, FYR of *Madagascar *Malawi *Malaysia *Mali *Malta *Mauritania *Mauritius *Micronesia, Fed. States of *Moldova *Mongolia *Morocco *Mozambique *Namibia *Nepal *Netherlands *Nicaragua *NigerNigeria *Norway *Oman *Pakistan *

Palau *Panama *Papua New Guinea *Paraguay *Peru *Philippines *Poland *Portugal *Qatar *Romania *Russian Federation *Rwanda **Samoa *Saudi Arabia *Senegal *Seychelles *Sierra Leone *Singapore *Slovak Republic *Slovenia *Solomon IslandsSouth Africa *Spain *Sri Lanka *St. Kitts and Nevis *St. Lucia *St. Vincent and the Grenadines *Sudan *SurinameSwaziland *Sweden *Switzerland *Syrian Arab RepublicTajikistan **Tanzania *ThailandTogo *Trinidad and Tobago *Tunisia *Turkey *Turkmenistan *Uganda *Ukraine *United Arab Emirates *United Kingdom *United States *Uruguay *Uzbekistan *Vanuatu *Venezuela, R. B. de *Vietnam *Yemen, Republic of *Yugoslavia, Federal Republic of **(Serbia and Montenegro)

Zambia *Zimbabwe *

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IncomeNet premium and commitment fees earned ....................................................................... $35,100Investment income ............................................................................................................ 28,300Miscellaneous income ........................................................................................................ 0

Total income .................................................................................................................. 63,400

Expenditure by organizational unitExecutive Office ................................................................................................................ 1,952Office of Central Administration ....................................................................................... 2,711Finance .............................................................................................................................. 1,473Guarantees ......................................................................................................................... 9,488Investment Marketing Services .......................................................................................... 4,019Legal and claims ................................................................................................................ 2,509

Total MIGA Budget ....................................................................................................... 22,152Other expenses .............................................................................................................. 250Total expenditure ........................................................................................................... 22,402

Net income before provisioning .......................................................................................... $40,998

Expenditure by categoryDiscretionary costs

Staff costs .......................................................................................................................... $ 8,896Operational travel .............................................................................................................. 1,443Representation ................................................................................................................... 124Consultant fees .................................................................................................................. 946Contractual services ........................................................................................................... 1,224IFC services ........................................................................................................................ 72Marketing and publications ................................................................................................ 556Direct communications ...................................................................................................... 197Internal computing and maintenance ................................................................................. 885Furniture and equipment ................................................................................................... 153Miscellaneous .................................................................................................................... 182

Subtotal .......................................................................................................................... 14,678

Other direct costsStaff benefits ...................................................................................................................... $ 4,361Office occupancy ............................................................................................................... 968IBRD service and support fee ............................................................................................ 1,360Overhead ........................................................................................................................... 215

Subtotal .......................................................................................................................... 6,904

Reimbursables ......................................................................................................................... –30General contingency ................................................................................................................. 600

Total MIGA budget ............................................................................................................... $22,152

Note: The fiscal 2001 budget was approved by the Board of Directors in accordance with MIGA’s bylaws.

FISCAL 2001 BUDGET(thousands of U.S. dollars)

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SUBSCRIPTIONS TO THE GENERAL CAPITAL INCREASEJune 30, 2000

SUBSCRIBED

Shares AmountSubscribed (U.S. dollars)

Category OneAustria ......................................................................................................... 295 $ 3,191,900Belgium ....................................................................................................... 1,031 11,155,420Denmark ..................................................................................................... 547 5,918,540Greece ......................................................................................................... 106 1,146,920Japan ........................................................................................................... 3,884 42,024,880Luxembourg ................................................................................................ 44 476,080Netherlands ................................................................................................. 1,653 17,885,460Norway ........................................................................................................ 250 2,705,000Portugal ....................................................................................................... 145 1,568,900Spain ........................................................................................................... 980 10,603,600United Kingdom .......................................................................................... 1,235 13,362,700United States ............................................................................................... 419 4,533,580

12 ...................................................................... 10,589 $ 114,572,980

Category TwoBahamas, The ............................................................................................... 38 $ 411,160Bahrain ........................................................................................................ 29 313,780Barbados ...................................................................................................... 26 281,320Belize ........................................................................................................... 19 205,580China ........................................................................................................... 1,196 12,940,720Croatia ........................................................................................................ 71 768,220Cyprus ......................................................................................................... 39 421,980Czech Republic ........................................................................................... 169 1,828,580Honduras ..................................................................................................... 38 411,160Israel ............................................................................................................ 180 1,947,600Kenya .......................................................................................................... 65 703,300Korea, Republic of ....................................................................................... 171 1,850,220Latvia .......................................................................................................... 37 400,340Malta ........................................................................................................... 28 302,960Mauritius ..................................................................................................... 66 714,120Peru ............................................................................................................. 142 1,536,440Russian Federation ....................................................................................... 1,195 12,929,900St. Lucia ...................................................................................................... 19 205,580Saudi Arabia ................................................................................................ 1,195 12,929,900South Africa ................................................................................................ 359 3,884,380Sri Lanka ..................................................................................................... 103 1,114,460Trinidad and Tobago .................................................................................... 77 833,140

22 ...................................................................... 5,262 $ 56,934,840

TOTAL 34 ...................................................................... 15,851 $ 171,507,820Percentage of TotalGeneral Capital Increase 20.18%

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INVESTMENT GUARANTEE GUIDE

The guarantees program is designed to encourage the flow offoreign private investment to developing member countries bymitigating political risks associated with a project. Beyond itsinvestment guarantees, MIGA’s participation in a project enhancesconfidence that the investor’s rights will be respected, an advan-tage inherent in MIGA’s organization as a voluntary associationof developing and developed countries.

The coverages described below may be purchased individu-ally or in combination, but selection of the desired coverages mustbe made by an investor before MIGA issues its guarantee.

MIGA offers coverage against the following types of political risks:

Transfer Restriction. Protects against losses arising from aninvestor’s inability to convert local currency (capital, interest, prin-cipal, profits, royalties, and other remittances) into foreignexchange for transfer outside the host country. The coverageinsures against excessive delays in acquiring foreign exchangecaused by host government action or failure to act, by adversechanges in exchange control laws or regulations, or by deteriora-tion in conditions governing the conversion and transfer of localcurrency. Currency devaluation is not covered.

Upon receiving blocked local currency from an investor,MIGA pays compensation in the currency of its contract ofguarantee.

Expropriation. Protects against loss of the insured investmentas a result of acts by the host government that may reduce oreliminate ownership of, control over, or rights to the insuredinvestment. In addition to outright nationalization and confisca-tion, “creeping” expropriation—a series of acts that, over time,have an expropriatory effect—is also covered.

Coverage is available on a limited basis for partial expro-priation (confiscation of funds or tangible assets, for example).Bona fide, nondiscriminatory measures by the host governmentin the exercise of legitimate regulatory authority are not covered.

For total expropriation of equity investments, MIGA paysthe net book value of the insured investment. For expropriationof funds, MIGA pays the insured portion of the blocked funds.

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For loans and loan guaranties, MIGA insures the outstanding prin-cipal and any accrued and unpaid interest.

Compensation will be paid upon assignment of theinvestor’s interest in the expropriated investment (equity sharesor interest in a loan agreement, for example) to MIGA.

Breach of Contract. Protects against losses arising from the hostgovernment’s breach or repudiation of a contract with the inves-tor. In the event of an alleged breach or repudiation, the investormust be able to invoke a dispute resolution mechanism (such asarbitration) in the underlying contract and obtain an award fordamages.

If, after a specified period of time, the investor has notreceived payment or if the dispute resolution mechanism failsbecause of actions taken by the host government, MIGA will paycompensation. MIGA may make a provisional payment pendingthe outcome of the dispute resolution mechanism.

War and Civil Disturbance. Protects against loss from damageto or destruction or disappearance of tangible assets caused bypolitically motivated acts of war or civil disturbance in the hostcountry, including revolution, insurrection, coups d’état, sabotage,and terrorism.

For equity investments, MIGA will pay the investor’s shareof the least of the book value of the assets, of their replacementcost, or of the cost of repair of damaged assets.

For loans and loan guaranties, MIGA will pay the insuredportion of the principal and interest payments in default as adirect result of damage to the assets of the project caused by warand civil disturbance.

War and civil disturbance coverage also extends to eventsthat, for a period of one year, result in an interruption of projectoperations essential to overall financial viability. This type of busi-ness interruption is effective when the investment is considereda total loss; at that point, MIGA will pay the book value of thetotal insured equity investment. For loans and loan guaranties,MIGA pays the insured portion of the principal and interest pay-ments in default as a result of business interruption caused bycovered events.


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ELIGIBLE INVESTMENTSMIGA can guarantee new, crossborder investments originatingin any member country and destined for any developing mem-ber country. New investment contributions associated with theexpansion, modernization, or financial restructuring of existingprojects, and acquisitions involving privatization of state enter-prises, are also eligible.

Eligible forms of investment include equity, shareholderloans, and loan guaranties issued by equity holders, provided theloans and loan guaranties have terms of at least three years. Loansto unrelated borrowers can be guaranteed, provided an eligibleshareholder registers its investment with MIGA. Other eligibleinvestments include technical assistance, management contracts,and franchising and licensing agreements, provided their contrac-tual commitments have terms of at least three years and remu-neration of the investor is tied to the operating results of theproject. MIGA may guarantee other forms of investmentapproved by its Board of Directors.

In keeping with MIGA’s objective of promoting economicgrowth and development, investment projects should contributeto host country needs, such as job creation, technology transfer,and export generation. The projects must also be financially,economically, and environmentally sound.

ELIGIBLE APPLICANTSAn eligible applicant must be a national of a member countryother than the country in which the investment is to be made.Corporations or financial institutions are eligible for coverage ifthey are either incorporated in and have their principal place ofbusiness in a member country or if they are majority-owned bynationals of member countries. State-owned corporations are alsoeligible if they operate on a commercial basis.

DURATION OF GUARANTEEMIGA’s standard term of coverage is 15 years. Coverage may beissued for 20 years when justified by the nature of the project.The contract term for investments other than equity generallyfollows the term of the guaranteed agreement. MIGA cannotterminate the Contract of Guarantee unless the guarantee holderdefaults on its contractual obligations to MIGA. But the guarantee


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holder may reduce or cancel coverage on any anniversary date ofthe contract following the third.

AMOUNTS OF COVERAGEIn each risk category, MIGA may guarantee equity investmentsfor up to (i) 90 percent* of the investment contribution, plus(ii) an additional percentage of the investment contribution tocover earnings attributable to the investment.

For loans and loan guaranties, MIGA may guarantee up to(i) 90 percent* of the principal, plus (ii) an additional percent-age of the principal to cover interest that will accrue over theterm of the loan.

For technical assistance contracts and other contractualagreements, MIGA may insure up to 90 percent* of the totalvalue of payments due under the insured agreement.

Regardless of the nature of the project, an investor is re-quired to remain at risk for a minimum of 5 percent of any loss.In addition to MIGA’s coverage for a project, additional coveragemay be mobilized through cooperation with other political riskinsurers.

HOW TO APPLY FOR A MIGA GUARANTEE

Preliminary Application for GuaranteeAn applicant seeking coverage from MIGA should submit aPreliminary Application before the investment is made or irre-vocably committed. The Preliminary Application provides theinformation MIGA needs to make a provisional determinationof the eligibility of the applicant and the investment. Uponqualification, a Notice of Registration, along with a DefinitiveApplication for Guarantee, will be sent to the applicant.

MIGA will register Preliminary Applications for eligible in-vestments in countries that have signed but not yet ratified theMIGA Convention. For eligible investments in countries that havenot yet signed the Convention, MIGA will consider issuing aLetter of Intent to formally register the project when the countrysigns the Convention.


* In exceptional circumstances MIGA may guarantee up to 95 percent.

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Applicants are encouraged to contact MIGA if they haveany questions about the eligibility of an investment.

Definitive Application for GuaranteeOnce investment and financing plans are established, an applicantshould promptly complete and return the Definitive Applicationfor Guarantee to MIGA, along with any relevant project docu-mentation, such as a joint venture contract, feasibility study, andan environmental assessment. The Definitive Application pro-vides the detailed information MIGA needs to underwrite aproject and prepare a Contract of Guarantee. This informationascertains the eligibility of the applicant, the amount and type ofinvestment, types of coverage desired, the developmental impactsof the project, and the project’s financial and economic viability.

Premiums and FeesThere is no charge for filing a Preliminary Application. However,MIGA charges an Application Fee to process a Definitive Appli-cation. If the application is submitted and a guarantee is offeredand accepted, the fee will be credited against the first year’spremium. If MIGA declines to offer coverage, the fee will berefunded. If MIGA offers to provide a guarantee and the appli-cant declines the offer, the fee is nonrefundable.

MIGA also will charge a Processing Fee for additionalunderwriting costs incurred in evaluating projects that are envi-ronmentally sensitive (oil and gas, mining, infrastructure) or whosecomplex financial structures require retention of outside advi-sors by MIGA. If the exceptional costs incurred are less than theProcessing Fee, the unused balance will be refunded to the appli-cant; if greater, the applicant will be charged for the additionalamount.

The Processing Fee should be submitted concurrently withthe Definitive Application and Application Fee. Applicants shouldcontact MIGA prior to sending the Definitive Application todetermine whether a Processing Fee is applicable.

Premium rates are decided on a per project basis, accord-ing to the specific risks to be guaranteed by MIGA. Premium ispaid annually to MIGA in advance of MIGA’s commitment.

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HOST COUNTRY APPROVALMIGA must obtain the approval of the host country to issue aContract of Guarantee. MIGA will request such approvalfollowing receipt of a Definitive Application.

COOPERATION WITH OTHER POLITICAL RISKINSURERSMIGA actively cooperates with public and private political riskinsurers through coinsurance and reinsurance arrangements forjoint coverage of eligible investment projects. These collabora-tive efforts significantly increase available insurance capacity forapplicants seeking to expand their businesses in developing coun-tries. Treaty reinsurance, in particular, enables MIGA to offeradditional coverage and expand its gross capacity withoutincreasing its exposure.

In collaboration with the private insurance market, MIGAcreated the Cooperative Underwriting Program (CUP), a formof coinsurance in which MIGA is the insurer-of-record amongother participating underwriters. The CUP is designed to expandavailable investment insurance capacity for applicants by encour-aging private underwriters to offer coverage in developing coun-tries where the underwriters might not have guaranteed invest-ments without the involvement of a multilateral institution suchas MIGA.

These forms of coinsurance and reinsurance substantiallyincrease the amount of coverage available to investors.

INSURANCE BROKERSMIGA accepts submissions from eligible specialized or gener-alist political risk insurance brokers. Specialized brokers activelywork with MIGA and the applicant throughout the under-writing process. MIGA pays commission to the broker-of-recordfor issued contracts only.

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Telephone/Facsimile:Guarantees Department (202) 473-6167

(202) 522-2630 (fax)Investment Marketing

Services Department (202) 473-0394(202) 522-2650 (fax)

Legal Department (202) 473-5246(202) 522-2640 (fax)

Finance Department (202) 473-6181(202) 522-2660 (fax)

Address:For mailing

MIGA1818 H Street, N.W.Washington, D.C. 20433, U.S.A.

For visitsMIGA1800 G Street, N.W., Suite 1200Washington, D.C. 20433, U.S.A.

For information via the Internet:MIGA Home Page:

http://www.miga.orgIPAnet Home Page:

http://www.ipanet.netPrivatizationLink Home Page:

http://www.privatizationlink.comWorld Bank Home Page:

http://www.worldbank.org

appendixes - miga.org · 85 appendixes appendixes 86 governors and alternates 89 directors and...

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