World Bank's guarantee arm switches to portfolio approach after hitting $100 billion milestone

The Multilateral Investment Guarantee Agency of the World Bank Group (MIGA) reached a milestone on Thursday, surpassing $100 billion in total guarantees issued since its founding almost 40 years ago.

MIGA's latest deal, in which it bundles up to 23 guarantees for projects in Africa and the Middle East, as well as Central Asia, is a "strategic shift" away from its traditional "project-by-project" guarantees, to a more "portfolio-based approach".

MIGA will guarantee AMEA Power, a Dubai-based company, a total of?almost $1,5 billion. The plan will be implemented in two phases. The first phase includes wind, solar, and energy storage projects for Ivory Coast and Djibouti. Phase 2 will include additional countries.

* Each project will receive up to 15-years of protection against political risks. These include currency inconvertibility, transfer restrictions, expropriation and war, civil disturbances, and breach of contract.

Two projects in Egypt, totaling over $150 million in equity investments covered, are the first to be signed as individual guarantees under this framework.

The projects will deliver 2,766 MWh and 2,729MWh of clean energy storage in Phase 1. This is the first "grid-scale" storage to be introduced into several countries. (Reporting and editing by Keith Weir.)

(source: Reuters)