World Bank unit adopts portfolio approach after $100 billion reached

The Multilateral Investment Guarantee Agency (MIGA), a part of the World Bank Group, has reached a significant milestone, exceeding $100 billion in total guarantee issuance since its inception nearly 40 years ago. This achievement follows recent support for renewable power and battery storage initiatives.

MIGA announced a shift towards a larger-scale, portfolio-based approach, moving away from traditional project-specific guarantees. The agency’s latest deal involves providing guarantees to Dubai-headquartered AMEA Power.

New Guarantee Framework with AMEA Power

MIGA will provide guarantees totaling almost $1.5 billion to AMEA Power, implemented in two phases. Phase 1 encompasses wind, solar, and energy storage projects in Ivory Coast, Djibouti, Egypt, Jordan, South Africa, Togo, Uganda, and Uzbekistan, with plans to include additional countries in Phase 2.

Political Risk Coverage

Each project within the framework will receive up to 15 years of coverage against political risks. These risks include currency inconvertibility and transfer restrictions, expropriation, war and civil disturbance, and breach of contract.

Initial Projects in Egypt

The initial guarantees signed under this framework include two projects in Egypt, covering over $150 million in equity investments.

Projected Capacity and Energy Storage

Phase 1 of the projects is projected to deliver approximately 2,766 MW of generation capacity and 2,729 MWh of clean energy storage. This initiative will introduce grid-scale storage for the first time in several of the participating countries.