Multilateral Investment Guarantee Agency

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The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank group. It was established to promote foreign direct investment into developing countries. MIGA was founded in 1988 with a capital base of $1 billion and is headquartered in Washington, D.C.

MIGA promotes foreign direct investment into developing countries by insuring investors against political risk, advising governments on attracting investment, sharing information through on-line investment information services, and mediating disputes between investors and governments. MIGA also requires host country government approval for every project. MIGA tries to work with host governments - resolving claims before they are filed.

[edit] Guarantees

MIGA provides guarantees against noncommercial risks to protect cross-border investment in developing member countries. Guarantees protect investors against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract (for contracts between the investor/project enterprise and the authorities of the host country). These coverages may be purchased individually or in combination.

MIGA can cover only new investments. These include:

new, greenfield investments;
new investment contributions associated with the expansion, modernization, or financial restructuring of existing projects; and
acquisitions involving privatization of state enterprises.

Unlike other insurers, MIGA is backed by the World Bank Group and its member countries.