The Multilateral Investment Guarantee Agency (Miga), a member of the World Bank Group, and the Ministry of Finance of the Netherlands have signed a memorandum of understanding designed to enhance the access of Dutch investors to political risk insurance provided by Miga, thereby encouraging their continued involvement in projects in developing countries.
The cooperation marks the first time in Miga’s history that a member state of Miga decides to reinsure the agency for projects involving its national companies. Miga obtains most of its reinsurance from the private insurance market, although it also partners with export credit agencies on a project-by-project basis.
The agreement will provide for a total reinsurance capacity from the Netherlands of up to €
150mn a year.
150mn a year.
The initiative for the reinsurance facility was taken when an in-depth national review of the existing Dutch investment insurance schemes by the Netherlands government called for enhancing the country’s cooperation with Miga.
Dutch investors are involved in a large number of projects guaranteed by Miga. As of June 30, 2004, the Netherlands was the fourth largest investor country – accounting for some 8.5% of Miga’s total outstanding portfolio distribution. Since its inception in 1988, Miga has provided nearly US$1.4bn dollars in guarantee coverage to Dutch investors.
Projects insured have been in the agribusiness, financial, infrastructure, manufacturing, oil and gas, services, and tourism sectors in 25 countries across Sub-Saharan Africa, Asia, Europe and Central Asia, and Latin America.