~~ -, -- - ~ ~ ^ .. l - - -~ - , \ - 9s.I ' l §; ; /' ' e- I \ -lt& ~~~~~~~.~ -< . r', E~~~~~~~~~~~~~~~. . S. C'--~ ~ C.ARANIURIJI DE PRIVA |IlANITA D. A\IAToNt; H, w E,AN P.A III STANTON\ FRITZ F.>( HER LCA'N I ) JEAN-F)A\IEL (CERBFR (\ AN\T) LEO NARD (,'l \X WINST''N IN ENZR) (DRl II HELLENA CoR'I)IR E\ ELINE HERFKFNS SEE,11 IKŽ L1K J.E. SMN1ALL HAK,K-KLKfurl RI TH ! V\-'B HELL ;A JoNSI' TTIR BINIAL JAI AN \ItH'HFIQLIR RAIINIAN ARIL.L KARIm L '1'111 ALI TK tIIA HIABLE Mi. MAOrNDN J, AQI, i>i R. CAK\NAIII PFIFI S J. NIFIIA E'LIMNI' BFNFI')FTTI AToL:t Nl9HIHiARA t.AAI I Ri FL IT.A JL lIt' No4;L LL .ARLk-- STENERI PHILIIUE PHTEEER K ATALIN I)FEIFTEIR JAN PIERK I MR:IIAFI MAIFEK ZIIANt, SHLrL;AIA\ Zli (G, AN ;1AO 6 LETTER TO THE COUNCIL OF GOVERNORS June 30, 1995 On behalf of the Board of Directors and in accordance with the bylaws of the Multilateral Invest- ment Guarantee Agency (MIGA), James D. Wolfensohn, President of MIGA and Chairman of its Board of Directors, submits this report and auditedfinancial statements for thefiscal year ending June 30, 1995, to the Council of Governors. The Board is pleased to report that MIGA has had an excellent year during which its insurance and investment promotion services grew impressively. MIGA has successfully pursued the objectives set out in the Convention, thus supplementing the activities of the other members of the World Bank Group. The Board of Directors would like to express its appreciation for the outstanding leadership that the late Lewis T. Preston provided to MIGA from September 1, 1991, until his untmely death. During that period, the number of member countries nearly doubled and the volume of insurance business trebled. Mr. Preston's guidance and experience will be missed. 7 ~ ,~'> - " .~ have moved hesitantly toward privatization despite the lack of viable alternatives. The flow of private capital across borders can take many forms. Most movements in INTRODUCTION international financial markets consist of transfers of short-term debt instruLmients and An exceptional degree of volatility charac- near-monley equivalents. These can move in terized international capital markets in 1994- and out of countries at rhe stroke of a comiiputer 95 The peso crisis in Mexico sent ripple effects key. On a net basis, however, international throughl many developing cotuntries, as capital flows fromii commercial banks to national economies (some far removed from developing countries were actually negative in any similarity with Mexico) had to cope with 1993 (minlus $2 billion) and, when final data unprecedented surges in capital outflows, are available, will probably be significantly These volatile capital flows underscored the mnore so for 1994. Most new lending by banks value of stable patterns of private capital was litmited to project finance and short-term deploymenits across borders. In many ways, trade-related loans, primarily to credirworthy fotreion dlirect investment (FDI) is the most borrowers in Asia. Smaller, low-income stable or "patient" kind of capital placement. countries have haad virtually no access to For cOuntries whose financial markets were meediutll-ternm commnercial bank loans for many jolted by the fallout from the Mexican peso years. crisis, whicl ranged from Argentina, Chile, Movements of portfolio capital are slightly aid Colombia to Indonesia, SOuth Africa, and less volatile. Portfolio equitv flows have been Thailand, the abiding presence of the mrore kpatient" activities of foreign direct investors the most rapidly growitng componenit ot private capital transactions in the 1990s, expan.ding wals particularly imiiportant. almost twelvefold from $4 billioni in 1989 to Amid such turmoil, institutionis that help $47 billion in 1993, before dropping to to promiote FDI, like MIGA, assumne increasing approximately $40 billion in 1994. This importance for the sustained growth of constitutes an important new source of finance developing economies. for some developing counltries. However, the wide swings in matny of their stock markets The Importance of Foreign Direct attest to both the mobility of this type of capital and to the concerns that inhibit ftoreign Investment investors fromn greater participation in these malrkets. A sea change in attitudes toward private international investment has occurred in most In conitrast, the most permanent of all developing countries over the past decade. capital flows is foreign direct investmnent. In a Growing recognition of its importance to the global investment environment of fewer development process has contributed to market-distorting elements, suchi as high tariffs increased competition among countries to and otlher import restrictions, FDI tends to attract suchI investment. Yet, some countries create internationally competitive facilities. As have approached external investors warily, international corporations pursue their long- while others have pursued them avidly. Some term strategies under these circumstanices, such countries have rushed to privatize major segments of their economies, eagerly inviting foreign investors to take part, while others 8 investment can reinforce a country's tunda- now conservatively valued in excess of $500 mental comparative advantage. While new billion in developing an(d transitionial econo- FBI decisions occasionally occur in situations mies, represents a particularly valuable compo- where host governments have adopted un- nent of potential economnic growth for these sound policies, nost new FDI by international coutitries. companies tends to be based on the underyivnrc t 1 t ~~~~~Fuir hermore, evidence continues, to s,u 1gCSt prospects for market growth and profitability, that outward investment from industrialized Conversely, new FDI flows to countries that the or d develoin countriesiie continue to have major market distortions are and t be more nde anced developtthe omantries hs low. ~~~~~~~~~~~Mutually heiieficial to both the hotne an I host lo, veconomies. In the debate that accompanied In periods of crisis that may spur capital the ratification of the Uruguay Roundl of trade flight, the basis for future FDI can sometimes negotiations and the establishment of the he strengthened. Following a devaluation and World Trade Organization, sone participanits economic restructuring, as in Mexico in 1994- voiced concern that FDI might be "exporrinLg 95, dotestic costs in foreign currency terms are jobs from the investor's country of origin. A lowered. The long-term resLIlt can be enhanced careful reviexV of the dlata h scholars shows international competitiveness and an ability to just the opposite. Firms that invest and earn profits in the home counitry's currency; produce abroad export more than firms that do this serves to attract future FDI. not. They export mi:ore in general, and tore, in Among the various types of private interna- particular, to COuries in which they have tional capital flows, FDl has always offered invested. Overall, foreign investors are net job creators in their homne counitries comtpared to particular benefits to recipient countries. Its frms in simiar inutie that domnorest value stems from the concurrent deployment of abrod in short, oustriest enot from technology, the transfer of managerial and marketing expertise, and mnore broadlv, the industrialized countries complements the 1 (~~~~~~~~~~~~~enerationl of employtnent In th-ose COLuntries. enhancemnent of efficiency and the promotion of comparative advantage in international economnic relations. Once successfully estab- Thti Importutn- , I: lished, foreigni investment creates its own lnestnllu ltilif t- A virtuous cycle of reinvestment and expansion. While simultaneously stimulating competition Political risk insurance responds to a utlique an.d technological innovation, it encourages kind of imperfection in the workings of adaptation horizontally amnonig rivals and international markets. Private investors are vertically among suppliers, generally competent and confidenit in their The total FBI to developing countries anti ability to assess anid manage commercial risk; in hconomlas continuled to grLW their field of business. However, uncertainty economies in transition asbOt the continuity and fUture course of the rapidly. In 1993, ibis total reached a peak ofregulatory regimes govern- approximately $67 billion, a 42 percent ina FDI constitutes an otten intractable form of increase over 1992. While the final figures for I ~~~risk fromi the pnoinit off vewv of pr ospective 1994 are not vet available, FBI flows may have eased somewhat from 1993 levels. Frotm a long- foreign investors Host government authorities term perspective, the aCCUmu111lation of FBI, are equally concerned aboout how to demon- strate the credibility and continuity of their policy reforms. 9) Without some kind of "intervention" to In other ways, MIGA complements rather resolve this credibility and continuity problem, than duplicates the activities of other political international markets will perform sub- risk instirers. In this respecr, MIGA's operations optimally an.d international investment flows have not simply "ridden the tide" by assisting will be reduced to a level far below their full investors entering those countries where potential. Investors have been quick to private international investors have already recognize that investment insurance is shown a willingness to ventLre. Instead, MIGA uniquely able to help improve the functioning has played a pioneering role in supporting of international investment markets. Investors' projects in countries and sectors that do not demand for political risk insurance from follow the general trend. In 1993 and 1994, for private, national, and multilateral agencies has example, estimates indicate that half of all FDI grown extremely rapidly. During the past flows to developing and transitional economies calendar year, the 14 largest national programs went to East Asia and the Pacific at a rate of and MIGA collectively reported to the Berme more than $30 billion per vear. Lower-income Union an increase of 54 percent in the volume countries around the world, excluding China of coverage issued over the previous year. The and India, received only about $3 billion. In results from 1995 are expected to continue this contrast, the regional distribution of MCGA's trend. portfolio is significantly different. As noted To meet the rising demand from interna- elsewhere in this report, MIGA has significant tional investors, multilateral political risk exposures in countries like Bangladesh. insurance of the kind that MICA offers has Honduras, and Uzbekistan. To underscore this some advantages over the offerings a pioneering aspect of MICAs work, this annual and private political risk insurance agencies. repot,ble previou ones, provieignettes ot These dvantaes li in NCA' ablt toac many notable "firsts": the first foreign private These advanitages lie In MlwG's abililtv to act t, ~~~~~~~~~infrastructture project in Jamaica, the first as a trusted neutral party, owned by 128 prate p r fact In Hnuas, the first member countries that represent the entire private power facility in Honduras, the first spectrum of deeomna exeine , an private mining operation in Uzbekistan, and spectrum- of devetopniental experienices, anal Its capacity to tap the huIman anid technical i the first foreign commercial banks in the resources of the entire World Bank GroIip. Slovak Republic and \Venezuela. MICA's record of supporting investmenlts in MIGA can compensate for inadequacies in national insurance market thasectors and countries that diverge from the national ins e markets tha ars fom general trend is a particularly valuable at- asymmetries In eligibility criteria and con- tribute, because analysis of foreign investment straints imposed bv home government policies. MICA has written a considerable number of kehavior shows that once a significant first MIGA has writtnaonsierabein ro investor, or first group of investors, is success- guarantees for investors who were unable to obtinadeLttecovrae t-rina ntina ftully establishied in a countrv, the probability of obtinSLirrIn adeqtiatoverage frcompar tisonal wsubsequent investment rises substantially in a insurer. In addition, in comparison wiLth the "follow-the-leader" fashion. MIGA's "first" short-term coverage that private insurers poet n ayohr htteaec a _ A ' . , ~~~~~~projects aiid imanyv others that the agency has provide, MvlGA offers long-term coverage (up) provide, MICA offers long-term coverage (ul' stipported reveal that investors clearly value to 15, sometimes 20, years). Furthermore, MIGAs presence as they ventLre into new MICA cani provide coveragre against potential MC'speecea hy etr it e MIGA cnpoiecvrgagispoerl countries. The total FDI facilitated by MIGA's losses arising from currency transfer delays and insurance program now exceeds $8.5 billion in war and civil disturbance, which private 34 developing COuntries. insurers find difficult tco provide. 10 Technical Assistance Looking to the Future MIGA's technical assistance and advisory With the World Bank and International services complement its political risk insurance Monetary Fund (IMF) forecasting the strongest program and reinforce its role as a neutral aggregate economic growth the world has seen broker. MIGA assists potential host countries for decades in the year ahead, the prospects for to develop more effective investment promo- FDI flows seem especially strong because they tion agencies, to disseminate information are closely correlated with economic growth about their investment opportunities, to rates. While predicting that FDI will continue market their countries as a favorable location to increase at its recent high rates would be for foreign investment, and to follow up on unrealistic (because its growth has been so prospective investor inquiries more efficiently. explosive and the base for comparison has Besides helping to meet the needs of potential become so much larger in recent years), it is, investors, MIGA provides tested and reliable nevertheless, likely to continue at a strong advice to host country authorities, based on pace. comparative experience from around the womprld,tative helpsre latter adopndthlegislan The need for patient capital of the kind world " e"ps that ay bedifltior represented by foreign direct investmhent and and "close projects that may be,difficut MIGA's ability to support both foreign inves- controversial in the local political arena. tors and host countries indicate that the Overall, by supplying all interested parties with demand for all of MICAs services will con- information, assistance, and advice, MIGA tinue to be strong in the future. provides them with the confidence to move forward together in the promotion of foreign direct investment. 11 Philippines, the Slovak Republic, South Africa, Tunisia, Venezuela, and Viet Nam * MIGA issued, for the first time, significant amounts ot coverage ($142 million) for THE GUARANTEE PROG;RAM infrastructure investments, which included its first power and toll road projects * MIGA received its 2,250th preliminary Fiscal 1995 was a very succesStul year for MIGIA's guarantee program. Highlighted by a application for coverage 42 percent increase in guarantee contracts A number of complementary global influ- (54 versus 38), fiscal 1995 surpassed fiscal 1994 ences have contributed to the surge in MIGA's not only in the number of guarantee contracts business. To begin witlh, legal and economic signed but also in the total amount of coverage reforms generated by the shift away from issued ($672 million versus $372.6 million), centrally planned economies helped create a the nmlber of developing countries benefited competitive, market-oriented environment in (21 versus 14), and income earned from many countries. Privatization and liberalization premiums and commitment fees ($14.4 million movements in a nUmber of nations fostered versus $9.9 million). In addition, MIGA has investors' interest in many emerging markets. seven commitment letters outstanding for Furthermore, many developing countries $210 million in potential coverage. actively sought foreign investors for their capital, technological know-how, and knowledge of Otherea mlons and access to the international marketplace. were as follows: * MIClGA signed its 1 5 5th contract of guarantee As noted in the introduction to this report, * The contracts facilitated- more than $8.5 private capital flows to the developing world • TI-he contracts facilitated imore thian $8.5 , .II. . . . ~~~~~have surged. MICA has faced mounting billion in toreign private investment * They to)taled miore than $1.6 billion in demand for itS guarantee services from inves- tors seeking to venture into developing maximum contingent liablity seiecdb countries, as evtdenced bv the increase in * MICA issuied its first guiarantees in Costa aplctosfrovag(eeetinn Ria ECidr HodIrs Morcc, th applications for coverage (see section 011 Rica, Ecuadom Honduras, Msorocco, the Portfolio Distribution and Figure 1). Figure 1. Cumulative Number of Preliminary Applications (as of June 30, 1995) 2,500 2,262 2,000 - 1,629 1,500- 1,055 1,000 645 500 220 FY89 FY90 FY91 FY92 FY93 FY94 FY95 12 One reason this detnatid is high is because concerns associated wvith investing in these MIGA enjoys considerable flexibility as a countries. It issues long-term, noncancelable multilateral investment insurer. To cope better guarantees to protect investors against losses with this increasing volume of business, MIGA arising from currency transfer problems, streamlined its processing procedure during the expropriation, and war and civil disturbance. year and achieved a higher level of efficiency. eX ~~~~~~MIGA can cover new cross-border invest- MIGA's guarantee coverage is custotmized to ments as well as new contributions to expand, suit each investor's needs, both in terms of the privatize, or financially restructure existing form of investmetnt covered and the type of projects. MIGA has the flexibility to cover coverage issued. A good indicator of client various forms of investment, including equity, satisfaction in this regard is the growing loans made or guaranteed by foreign equitv volume of repeat business, holders, commercial bank loans, and technical MICA continued its endeavors to comple- assistance and management contracts. rnent existing national and private political While MICA focuses on meeting the risk risk investment insurance agencies. It seeks to management needs of the investor, it simulta- fill the gaps in the investment insurance neously seeks to ensure (a) positive develop- market, created by various asymnmetries in mental effects for the host country, including eligibility criteria and in the types and amounlts employment generationi, managemrient and of coverage that public and private insurers skills training, technology transfer, and offer to investors. Thus, in certain circum- environ-nenital soundniess; and (b) financial stances when other insurers do not offer prudence in customizing the terms and adequate coverage, MIGA may be the pre- conditions of its coverage. ferred source of long-term insurance. MICA also seeks to supplemnent the coverage other Prfol Ijstributrwn insurers provide throughl various coinsLirance and reinsuranice arrangemnents. In fiscal 1995, Ia In ItS efforts to imanage itS "Liarantee MIGA concluided its first reinsurance agree- p p ment with the Export Creditts Guarailtee potoi prdnty MIG lia cosstnl Deparntent (ECGD) of the United Kinsdorte sought to diversify its contingent liabilities Departmet (m both bv country and sector. MIGA's issued and for a project in Tunisia and coinsured its first outstanding portfoioh increased in size and project with Sezione Speciale per la ~~~~~broaden-ed in diversity in fiscat 1995. lAssicurazione del Gredito Att'Esportazi-one Sectorally, MIGA devoted particular attention (SACE) of Italv in Argentina. to expalnding its infrastructure and tourism Within the World Bank Group, MIGA projects; both sectors considerably increased worked closely with IFC and the IBRD to their share of the total portfolio. supplenment their private sector development MIGA issued significant amounlts of activities in memb er co untries. coverage in the infrastructure sector during the fiscal vear, especially for private power projects, Tlu M5IQA (Uit71tt'uC't which totaled $142 million in maximum liability for 13 guarantee contracts. Because MIGA's guarantee program encourages mnore than 40 percent of MIGA's active foreign investors to ventLire into developing applications for coverage are for infrastructure countries by mitigating certain political risk investmenits in more thani 60 developing 13 received 2,262 applications Figure 2. Guarantee Portfolio by Sector as of June 30, 1995. While only (as of June 30, 1995) some of these applications will ultimately result in actual Oilra&tGactur guarantee contracts, the 15 Infrastructurre 10% } \ Manufacturing percent increase in active 20% preliminary applications over fiscal 1994 shows continuing interest in MIGA's guarantee Mining Agribusiness services. Active registered 21%0- 4% projects involve investors from Services 44 countries, with prospective 1% investments in 1 10 developing countries. This, together with Tourism rising country membership, 2% nciai augurs well for future growth of financial the guarantee business and for MIGA's efforts to maintain a balanced portfolio. countries, MIGA anticipates substantial Marketing increases in business in this sector. In the tourism sector also, MIGA considerably MIGA continued to benefit from the expanded its business, which included its first willingness of intermediary organizations- ecotourism project-a rain forest aerial tram in financial institutions, insurance brokers, Costa Rica (see Figure 2). chambers of commerce, and other business associations-to disseminate information In terms of country diversification, MICA about the agency's programs within the private broadened its portfolio by issuing its first business community. In particular, MIGA guarantees in 10 additional countries-Costa expanded its relationships with financial Rica, Ecuador, Honduras, Morocco, the institutions with respect to funding for large Philippines, the Slovak Republic, South infrastructure projects, especially for private Africa, Tunisia, Venezuela, and Viet Nam. power. MIGA's guarantee portfolio is now spread across 34 beneficiary developing members (see Table 1). Participation by guarantees staff in seminars and conferences increased significantly during The volume of preliminary applications that the year and succeeded in identifying many MIGA receives from investors is a rough prospective new clients. MIGA guarantees indicator of the success of previous marketing staff conducted meetings and held presenta- efforts and the possible dimensions of MIGA's tions in more than 45 countries. These future portfolio.' Throughout fiscal 1995 meetings reached thousands of international preliminary applications came in at a steady companies, financial institutions, business rate of about 50 per month, and MIGA had associations, commercial banks, and chambers of commerce. 1. The preliminary application is a one-page form that allows MIGA to make a provisional derermination of an investments eligihility. 14 Table 1. Guarantee Portfolio by Host Country (by percentage of maxitnmum contingenit liability) Portfolio Portfolio Host Countrv Distriblttion Host Country Distribution Pakistan 9.7 Chile 3.0 Argentina 9.2 Costa Rica 2.0 Peru 8.5 Venezuela 1.9 Brazil 6.5 Honduras 1.9 Turkey 5.7 Ecuador 1.5 China 4.9 Hungary 1.4 Jamaica 4.3 Viet Nam 0.8 Czech Republic 4.1 Uganda 0.7 Tunisia 4.0 Morocco 0.6 Bangladesh 4.0 Russian Federation 0.6 Poland 3.4 Ghana 0.6 Philippines 3.4 South Africa 0.5 Indonesia 3.2 Tanzania 0.5 Slovak Republic 3.1 Kazakhstan 0.3 Trinidad & Tobago 3.1 Bulgaria 0.2 Uzbekistan 3.1 Madagascar 0.1 Guyana 3.1 Cameroon 0.1 (as of June 30, 1995) Note: See Financial Statements (page 50) for dollar amounts of contingent liabilities by host country MIGA is one of the few investment insurers newsletter, which was well received bv an that can cover private investments between additional group of subscribers. developing countries, and in fiscal 1995 the agency made a special effort to promote such investment. The initial effort in South Asia Guarantees Issued was well received and will continue in fiscal In fiscal 1995, MIGA issued 54 guarantee 1996. contracts totaling $672 million in coverage In fiscal 1995, MIGA benefited from and 9 commitment letters for $243 million in increased media attention. Informational potential coverage. The total direct investment literature about the agency was widely dissemi- facilitated by these MIGA-insured projects is nated. MIGA revised its broker's program and approximately $2.5 billion (see table 2). These promoted the program with a new edition of projects will generate an estimated 8,884 jobs its Insurance Broker's Guide. Furthermore, as a (approximately 931 management and profes- result of intensified promotional and marketing sionals and 7,953 local labor) in 21 host efforts, the number of subscribers to MIGA countries and will involve substantial adminis- News, the agency's quarterly newsletter, has trative and technical skills training programs almost tripled since fiscal 1993. MIGA for the employees. published a special Spanish editioni of the 15 Table 2. Guarantees Activities, Fiscal 1990-95 FY90 FY91 FY92 FY93 FY94 FY95 Number of Guiarantees 4 11 21 27 38 54 Maximum Aggregate Liabilitv ($ Inillion) 132 59 313 374 372 672 ForeiiEn Direct Investment Facilitated ($ billion) 1.0 0.9 1.0 1.9 1.3 2.5 The following section describes the invest- British Gas Plc. ment projects, grouped by geographic region, I LiNISIA insuredl by MIGA in fiscal 1995. MIGA issued a loan guarantee of $64.8 million, including $14.9 million in reinsurance I i1- . by the Export Credits Guarantee Department (ECGD) of the United Kingdom, to British Gas Plc. for the development of a gas field in Africa and the Middle East received Tunisia. The project is MIGA's first in Tunisia, intensified attention from MIGA during fiscal its first in the gas sector, and its first 1995. Country membership in the region reinsurance agreement with ECGD. The increased with the inclusion of Benin, Equato- project involves the construction and opera- rial Guinea, Lebanon, and Mozambique. tion of offshore platforms at the Miskar gas MIGA's first guarantees were issued for field, a subsea gas pipeline, and an onshore investments in Morocco, South Africa, and natural gas processing plant. This gas field is Tunisia. In addition, MIGA signed guarantee expected to yield about 90 percent of domestic contracts with an investor for a project in gas production. Uganda. MIGA officers visited a number of COIntries in the region, including Gabon, the projectoeterprise, British Gas Tunisia Israel, Kuwait, Lebanon, South Africa, Syria, Ltd., is a iholly-owned subsidiary of British Tanzania, and Uganda to meet with local and Gas Plc. British Gas will employ 255 Tunisian foreign businesses interested in expanding their workers and provide extensive operational, ivsmnsntergo F r safety, environmental, and security training. MiGA's Investment Marketing Services MIGA insurance covers the risks of currency department developed innovative informa- transfer, expropriation, and war and civil tional tools to promote investment opportuni- dsturbance. ties in the region (discussed later). Investors' interest in Africa and the Mliddle East is Multiserv International N.V. indicated by the fact that MIGA currently has Harsco Corporation more than 150 applications for coverage of SOUTH AFRICA prospective investments in 42 countries in the region, 28 in Africa and 14 in the Middle East. MIGA's first guarantees in South Africa were issued to Multiserv Intemational N.V. (Multiserv) of the Netherlands, totaling $4 million, for its equity investment in a steel 16 Local companies will benefit from the project because most of the construction materials for the crushing and milling plants will be obtained locally, as will most of the equipment and machinery. Both investments I | > ^ b! l are covered against the risks of currency -0 p ,-; itransfer and war and civil disturbance. A 7 private insurer is providing Multiserv with ,_ Ik, ,, expropriation coverage. p -- -. 1 l . ,, , France Commodities, S.A. q.1 c.enA ;t . -. 5 v UGANDA -MIGA issued two guarantee contracts >-- -, .' totaling S1.7 million to France Commodities, S.A. (FRACOM), a French company. for its Miskar natural gas processing plant joint venture in Uganda. The project enter- prise (Impala Commodities, Ltd.) will clean, slag processing plant. The project enterprise, grade, and bag high-quality coffee beans for FerroServ (Pty.), Ltd., a wholly-owned subsid- export to Europe. The project will benefit iary of Multiserv, will improve the output of a Ugandan coffee producers, because it will local, privately-held stainless steel company by increase competition in the local market. recovering metals from the plant's slag output. FRACOM's investment will create about 30 MIGA also insured Harsco Corporation of the jobs, and will provide technical training for all United States for $4.5 million for its guarantee employees. MIGA's guarantees will cover the of a $3.5 million loan by the First National risks of expropriation and war and civil Bank of Southern Africa, Ltd., to the project disturbance. enterprise. Impala Commodities, L,d coffee bean facilitN in LUganda 1 7 Banco Exterior de Espafia, S.A. Pepsi-Co, Inc. MOROCCO Ratti Technologies S.r.L. Shinwha Textile Company Ltd. MIGA's first guarantee in Morocco, totaling CHINA $9.9 million, was issued to Banco Exterior de Espafia, S.A. (BEX), a leading Spanish trade MIGA issued equity guarantees totaling finance bank, for its $10 million loan to $2 million to Pepsi-Co, Inc.; Ratti Technologies expand the wholesale and retail commercial S.r.L.; and Shinwlha Textile Company. Ltd., activity of its majority-owned subsidiary in against the risks of currency transfer, expropria- Morocco, Banco Exterior Maroc, S.A. (BEM). tion, and war and civil disturbance, to cover BEX owns 95 percent of BEMvI and a local their respective investments in Sika Silk Moroccan bank owns the remainder. BEM will Company Limited in China. The project is a provide employment and training to about 45 joint venture between six companies from Moroccan nationals. The project enterprise China, Italy, Korea, and the United States and will also facilitate foreign investment in will be located 60 kilometers from Chengdu in Morocco by improving the quality and avail- the SichuanL province. ability of financial services. It will encourage trade with Spain, the COUntrys second-laestRat (an Italian company) and Shinwha (a Korean company) are world leaders trading partner, and stilmulate local industries. in the production and processing of silk, and MIGA insurance covers the risk of cLurrency Intepoutnad rcsngtslkad MIr a insue r ance.covers the risk of currencyeach has a 1 5 percent stake in the venttire. transfer. They will provide the project with their expertise in engineering, technology, market- ing, and management. Ratti will also provide ASIA Italian machinery and introduce more modern technological standards than those currently Heavy demand for MIGA coverage of used in other silk processing plants in Sichiian. projects in Asia accounted for about one-third Pepsi-Co has a 2 1 percent stake in the venture. (more than 250) of all active applications Local government-owned investors, who received during the year. These applications will hold a 49 percent stake in the venture, will originate in 24 investor countries and are for provde a sl orc the pj. Te proe wi itivstiietis ina wde rngeof sctos, foni provide raw silk for the project. The project Is investmmeniatsions wideangelofsectorspw, fo expected to create 130 new local jobs and will hotelecmmunicaions andg d electicgIn kepo gwe ito lhave a positive impact on the domestic hotel chains and gold mining. In keeping with economy. In addition, employees will be management's intent to make a special effort to trained at Ratti's state-of-the-art silk processing promote the flow of private direct investments facility in Como Italy. into and from South Asia, this region was a focal point of MIGA's marketing efforts. Three missions by guarantees staff visited Catalina Lighting, Inc. the region. These included the linst MIGA CHINA missions to Bangladesh, In.dia, the Republic of Korea, Papua New Guinea, the Philippines, MIC A issued $14.4 million in coverage to Singapore, Sri Lanka, ad Viet Nam. Catalina Lightin, Inc. a U.S. supplierof premium lighting fixtures, to acquire andl expand Shenzhen Jiadianbao Electric Products Company, Ltd. (SJEP), in China. SJEP 18 manufactures lamps, lightin-g fixtures, tlash- nications equipment. This will help meet the lights, and electric screwdrivers. MIGA growing domestic demand for these products. insurance covers the risks of expropriation and YSLCCL will emplov about 100 local war and civil distuirbance. Chinese workers who will be trained in the The project promises to have a positive oxygen-free method of copper production. The environmental impact. as Catalina will install project wvill also contribute indirectlv tO a new wastewater treatment tacilitv at the employmenit in companies that supply the factory. The plant will serve as a model for copper cathode and those that use high- other new businesses because SJEP is expected conductivity oxygen-free copper products in to become the most technologically advanced malnufacturing. MIGA insurance covers production facility in Guangdong province. CCDC against the risk of expropriation. The project will provide a significant boost to the local economy. Most of the supplies Honevwell, Inc. needed to modernize and expzand the plant will CHINA be sourced locally, and eventually Catalina hopes to obtain all raw materials and produc- MICA extended coverage totaling $990,000 tion components locally. Employment tioures to Honeywell, Inc. of the United States, one ot indicate that the currenlt work force will do1uble the tloblt leaders in the manufacturing and to almost 5,000 permanient employees after the sale of bullding, industrial, and aviation expansion, al of whomi will be Chinese conitrol systems, for its $2.2 million equity nationals. These employees will receive investment in a joint venture in China. The substanitial techlnical and management training project enterprise, Sinopec-Honeywell on various aspects of modern technology and (Tianjin), ILtd. (SHL), will be 55 percent prod1uctioln line mzan-agemiient. The construc- owned by lioneywvell and 45 percent by the tion phase of the project will temporarilv Chintese government-owned Sinopec Group. employ another 3,000 people. Along with SHL will sell, install, and sutpport process additions to the existing plant, three new manaagemnent and control systems desiolned to dormiiitories Will be built to house SJEP improve planit productivitv and the efficiency ot emplovees, industrial facilities in China, especially in the oil and petroclhemllical industries. Chinia Capital Development Corporation The project is expected to create approxi- CHINA mately 84 perm11anienit local jobs in addition to the 44 jobs that will be created in the MIGA issued $540,000 of coverage to the constructi1o plhase. SHL staff will receive China Capital Development Corporation training at Honeywell's training facilities in (CCDC) for its investment in a copper Phoeniix, Arizona. The project enterprise products facility in China. The project will also help to provide housing and enterprise, YiXing St. Louis Copper Companv, schooling for its staff and their dependenits. Ltd. (YSLCCL), is a joint velature between MIGA covers Honeywell's investment against CCDC and the state-owned YuLainShaing the risks oif expropriation and war and civil Industrial Corporationi of China. The project disturbance. enterprise will produce high-conductivity oxygen-free copper products, suchA as rods, wires, and cables for use in m1otors and commu- 19 Ingersoll-Rand China I td two Chinese government-owned companies, CHINA Shanghai Huiigao Industry and Beijing Cape Industries. The project enterprise, Shanghai MIG(7A issued guarantees for $5.9 million to Sunnen Products Corporation, wvill assemble Ingersoll-Rand China Ltd. (IRC), a wholly- and sell machine tools and related prodLucts, ownIled subsidiary of the Ingersoll Rand including abrasives and lubricants. The project Company .f the linited States, for its invest- will also develop an automobile maintenance ment in a joint venture to assemble, manufac- and rebuilding business xvithin the first five tore and market equipment to process animal years of operation. food in Chiina The project enterprise, CPM- 7hengchamg Livang Machinery Company Ltd. SPC will help design and construct the (CPM 71.), is formed by IRC and Livang factory and engineering facility, handle 7hengchang Grain, Oil and Feed Machinery international procurement of advanced Head Company of China. Ingersoll Rand, an machinery and equipment, and train manage- international producer of machinery and ment and technical personnel. The enterprise equipment, also owns California Pellet Mill will directly create 40 jobs, and will mainly use (CPM), a specialized manufacturer of animal local manufacturing equipment, contractors, and food processing equipment, which will manage other support services, which is expected to and provide technical assistanice to the project. stimulate the local economiv. MIG.Ns guarantee covers IRC against the risks of currencv transfer, expropriation, and war Citib;ank. N A and civil listurbance. CHINA IRC will own 65 percent of the enterprise, Citibank, N.A. of the United States and will make its $3.3 million eqLuity invest- received $41.4 million in N4IGA gtarantees ment in the form of equlpment, technology, against the risks of currencvy transfer and and cash The enterprise Will use modern technoloay and benefit from specialized expropriation for its branch capital investment technical assistance that will increase the in China. Citibank wXill use the investment to -acai,labiit hat aial food the expand its existing branches in Shanghai and a. v qilabititv (if high-q+ality aninial fox)d Shenzhen and to establish newv branches. processing equipment in China, xvhich was restricted previously duie to the limited availability of foreign exchange. CPM-ZL wvill Citibank. N A contribute to the local economy by producinog \TIFT N AM equipment locallv and wvill also export approxi- mately 20 percent of its production. AboLlt 50 MIGA issued its first Luarantee contract in local people will he employed and training will Viet Nam to Citibank, N.A which invested he provided on-site and abroad. $15 million to open a branch bank, Citibank, N.A. (Viet Nam), in Hanoi. The branclh will fOcus on trade finance, strLctured trade, foreign Sunnen Prodiictr ( oiniponx exchange services, project advisory services, CHIN A and cash management. MICA's guarantee of $1 3.5 million will cover Citibank's investment MICA issuled $2.7 million of insulranace to Iunnen Products Compan , (SPC), a U.S. against the risks of expropriatio 1n, cuLrrency :SLinnetn Pro!]iucts Company (SPC), a l !S.. ' ~~~~transfer, an-d xvar and civil diStUrbance. machine tool manufacturing companly, against the risks of expropriation and wvar and civil disturbance, SPC's joint venture partners are ??~ Magnma Pon ci Company ING Manila, a leading trader of foreign- PHILIPPINES currency-denominated Philippine debt, recently expanded its operations to include Magma Power Company of the United underwriting of Eurobond issues, foreign States received $30 million in MIGA coverage exchange trading. currency swaps, and the for its investment in the construction and placement of international equity offerings by operation of a 231 megawatt (MW) geother- Philippine corporations. This shareholder mal conversion facility on the island of Leyte, loan will enable ING Manila to establish southeast of Manila. The facility is part of a a financing facility for local companies 440 MW geothermal energy field that '*vlill emphasizing project, privatization, and exporc expand Leyte's generating capacity to 640 MW financing, as well as loans for private corporate Magma will provide substantial technical debt restructuring. ING Manila will lend to a and managerial expertise to the project. variety of economic sectors in the Philippines. Employees will benefit from an extensive thereby benefiting a broad spectrum of training program designed to develop the businesses by making additional capital specific skills and techniques required to build available. and operate the plant. The project will operate a health clinic and recreational facilities, and Habib Bank AG Zurich offer housing for employees and their families. Greenwood Mills In addition, it will establish a reliable, environ- PAKIS IAN mentally superior power supply for the Luzon region, which includes Metro Manila, the Coverage was increased for two projeccs country's most populated and largest industrial previously insured by MIGA in Pakistan. Both center. MIGA insurance covers Magma against investments were insured against the risks of the risks of currency transfer, expropriation, currency transfer, expropriation. and war and and war and civil disturbance. civil disturbance. Internationale Nederlanden Bank, N.V. , - PHILIPPINES MIGA issued $25 million in coverage to Intemationale N Nederlanden Bank, N.V. (ING) of the O Netherlands for its 15-year shareholder loan of $27.8 million to ING Manila Offshore Branch (ING Manila). This was MIGA's first guarantee of an x investment in the Philippines. MIGA's i ..i coverage was extended against the risks of currency transfer and expropriation. ING iManila Offshore Branch Bank 21 * MICA expanded coverage (totaling $10.3 of 2'335 tons of paperboard. The plant's design million) to Habib Bank AC Zuricl, a Swiss will permit adding two more presses as volune bank, for its investmllenlt to expand and increases. \Xestvaco is one of the leaders in the diversify its financial services and resources development, production, and m1arketing of available for productive investment in specialized packaging tor the food industry in Pakistan. Habib Bank had received MICA the United States. coverage for $6.4 million in fiscal 1993. * Greenwood Mills, Inc. (CMI) received $3.6 The project will create approximately 100 • Orenwod Mlls lic. OMI reeivd 6 permanent jobs and will provide training for all mnillion in new coverage f-or its equiity its emiplovees in plant operation and sales, as iilvestilleilt ill a denlilil garmlenit facility 111l- inesmetndnn filiy in well as in rotogravure, offset-printinig, an.d press Faisalabad. MICA had covered OMI for $8.4 million in fiscal 1994. operation. It will also contribLite about $4.5 $ m1million in annual exports during the first five years of operations. MICA insured Westvaco EUROPE AND CENTRAL ASIA against the risks of expropriation and war and civil disturbance. In July 1994, Ukraine became the 25th Category Two countrv in the reoion to join t7l ~~~~~~~~~Banque Nationale de Paris MIGA. Five other couLntries-Armenia, the Bat lARI s Republic of Bosnia-Herzeoovina Latvia, BULGARIA Tajikistan, and the Federal Republic of MIGA issued $2.7 miillion in coverage to Yugoslavia-are in the process of flfilling Banque Nationale de Paris (BNP) of France lor MICA membership requliremiients. Guarantees its $ 3 million equity investmenit in BNP- staff visited the Czech Republic, Hungary, Dresdner Bank (Eulgaria) A.D MICA's Poland1, the Slovak Repubnlic, and Turkey to coverage was extended against the risks of explain MICA's guarantee program to Inter currency transter, expropriation, and war and ested private investors and government civil disturbanice. BNP-LDresdner will increase officials. This, along with the increase in local access to capital markets and foreign applications for coverage of investments in the exchanoe, and will thereby have a positive regioni, should expand the scope of MIGA's effect on the development of local companies. activities in the area. Internationale Nederlanden Bank, N.V. Westvaco Corporation SLOVAK REPUBLIC CZECH REPUBLIC MIGA issued its first guarantees in the MIGA insured Westvaco Corporation Slovak Republic to Internationale Nederlanden (Westvaco) of the United States in two Bank, NAV' (ING) of the Netherlands. ING, separate contracts, totaling $26.5 million, for onie of the first forei2n commercial banks in the its equity and loan investments in Westvaco repuLblic, invested $5 5.5 mzillion to expand its Svitavv, SPOL. S.R.O., in the Czech Republic. existing7 branch in Bratislava. The branch will Westvaco will establish a moderln paperboard focus its lending on infrastructure projects in printing and converting facility 75 imiiles east of the enaergy and telecommUnications sectors. Prague. The project facility will supply labels MlGA's guarantee of $49.9 million will cover and folding cartons to Central European the risks of currency transfer and expropriation manufacturers of consumer products. A large rotogravure printing and converting press will be installed with an initial processing capacity Citibank, N.A. Uruguay, and Venezuela and met with prospec- TURKEY tive clients. Membership in this region ex- panded to include The Bahamas and three new MIGA issued coverage for $22.5 million to signatories to the MIGA Convention-the Citibank, N.A. of the United States for its Dominican Republic, Panama, and Suriname. investment in the expansion of its branich in Istanbul. MIGA's guarantee covers the risks of CLurretcy transfer and expropriation. Wartsila Diesel Development Corporation, Inc. Illinova Generating Company Scudder Latin American Trust for Newmont Gold Company Independent Power Newmont (Uzbekistan), Limited Internationale Nederlanden Bank, N.V. UZBEKISTAN Mees Pierson MIGA issued $10 million of coverage to HONDURAS Newmont Gold Company of the United States MIGA issued its first guarantee in Honduras and Newmont (Uzbekistan) Limited of Cyprus to Wartsila Diesel Development Corporation, for their investments in a gold ore-processing In1c. (WDD), against the risks of expropriation facility, Zarafshan-Newmont Joint Venture, at and war and civil disturbance, for a 60 MW a mine in Uzbekistan. In fiscal 1994, N4IGA diesel electric power plant near the Atlantic issued $40 million in coverage to Newmont port of Puerto Cortes. MIGA worked actively against the risks ot expropriation and war and with other bilateral and multilateral institu- civil disturbance. The project includes loans tions, including IFC, to facilitate the financing from the European Bank for Reconstruction for this project. \VDD was granted the option and Development (EBRD) as well as from a to transfer partial investment coverage to new number of European and U.S. commercial equity and debt participants in the project. banks under the EBRD's loan program. The first of such transactions resulted in the transfer of coverage of $4 million to Illinova LATIN AMERICA AND Generating Company and $5.9 million to the rrTH CAR1BBEAN Scudder Latin American Trust for Independent THE t 16 >rvlLXLv ioPower for their respective equity investments Strong demand tot MICA's guarantee in the project. WDD retained coverage of Strong demand tor MIGA!s guarantee program in Latin America and the Caribbean $1.9 million for its 10 percent equity stake in resulted in 26 contracts for the region, ac- the project enterprise, Electricidad de Cortes S. counting for 48 percent of the fiscal 1995 de R.L. de C.V. (ELCOSA), which is a joint I. G n v i f poe venture with the Honduran Electric Corpora- portftonIo. Guarantees were issued for projects tol SA,aseilprseoipnyfmd in Argentina, Brazil, Costa Rica, Ecuador, tion, S.A., a special purpose compan y formed Honduras, Jamaica, and Peru, representing by a group of Honduran industrialists. investments in the ecotourism, intfrastructure, In separate guarantee contracts totaling manufacturing, mining, and financial sectors. $18 million, MIGA coverage was also MIGA coverage facilitated funding for the first extended to two Dutch banks (Internationale diesel electric power plants in Hondtiras and Nederlanden Bank, N.V. and Mees Pierson) for Jamaica. Guarantees staff traveled to Argen- their loans of $ 10 million each to the project. tina, Brazil, Chile, Honduras, Paraguay, The ELCOSA project will have a significant impact on the Honduran power system. It will upgrade the existing local power network and 23 provide an urgently needed increase in jPPC is expected to enter into a long-term capacity, to help relieve chrolnic power contract with the Perroleumll Company of shortage problems in Honduras. Jamaica for the supply of fuel. The project's In addition, during the construction stage, output is being sold to Jamaica Public Service the local economy will benefit from eut ploy- Company, which in turn connects the project the ocaleconmy wll bnefi fro empoy- to the Jamaican electric power grid. ment generated, use of local materials, and tariff payments. Substantial local procurement The project will have a substantial indirect is also expected during the project's operational impact on the economy as it will help the life. It will create 39 local jobs and provide an country overcome frequent powet outages. apprentice program, which will allow employees JPPC will help increase Jamaica's electric to develop their technical and administrative capacity both in the short and medium term. skills. The project will also support local efforts In addition, JPPC will create jobs for 35 to protect and foster the region's natural envi- Jamaican nationals and provide training in ronment by encouraging consumers to use operating and maintenance skills. electricity instead of firewood. Conservation Tourism, Ltd. Hydra-Co Enterprises, Inc. Bank of Nova Scotia International Energy Partners COSTA RICA USEC-Precursor Inc. Rockfort Power Associates In two separate guarantee contracts, MIGA Energy Investors Funds 11, L.P. insured Conservation Tourism, Ltd. (CTL) of JAMAICA the United States and the Bank of Nova Scotia of Canada for their equity and loan invest- In five separate guarantee contracts, MIGA ments respectively in Dosel S.A., which has insured a major portion of the equity invest- been set up to run the Rain Forest Aerial Tram. ment in the construction and operation of a This is MIGA's first ecotourism project. CTL 60 MW diesel power plant in Jamaica. The holds a 92.2 percent interest in Dosel S.A., project enterprise, Jamaican Private Power with the remainder held by Costa Rican Company (JPPC), will be located near the investors. MIGA covered CTL for $146,250 Kingston harbor in Rockfort. Total investment against the risk of currency transfer and the in the project is estimated at $144 million. The Bank of Nova Scotia for $585,000 against the equity portion accounts for $35.7 million, and risks of currency transfer, expropriation, and the remainder will be financed by long-tern war and civil disturbance. debt provided by the Private Sector Energy The centerpiece of this ecotourism and Fund, which is partly funded by the IBRD and research facilitv in the Costa Rican rain forest the Inter-American Development Bank. MIGA has issued insurance for the equity near San Jose will be a 1 .3-kilometer aerial contributions of Hydra-Co Enterprises, Inc.; tram that will carry visitors throuh the forest International Energy Partners; USEC- canopy on a 90-minute excursion above a Precursor Inc.; Rockfort Power Associates; 1,000-acre jungle reserve. The project will be and Energy Investors Funds II, L.P. MIGA one of the closest and most easily accessible guarantees , a combined ai'ount of m- Anature attractions to San Jos6, and will thereby guancoveranthee riss of am edpropiamiount $50reil- add to Costa Rica's overall appeal to tourists locetrsoeppaocrn and improve the country's ecotourism image. transfer, and war and civil disturbanlce. transfer, and war and civil disturbance. In addition to being a tourist attraction, the 24 - ., Marriott International, Inc. ; ~ Bank of Nova Scotia - ' 0 t 'COSTA RICA r - Xuur..'. MIGA issued a $4.3 million guarantee - - . , , against the risk of currency transfer to Marriott Intemational, Inc. for the construction and ~~': ; -. - - - : ; - '^ ~: -- : : : ~operation of a 243-room luxury business and resort hotel located in the province of Heredia, seven miles outside San Josc, Costa Rica. In conjunction with this coverage, MIGA has issued S 17.2 million in insurance for the Bank of Nova Scotia's loan to the project against the . r. -.1 _, '. '.'- ''' _ '~ ' ' " " risks of currency transfer, expropriation, and ( ~ . \ -.o .... .- war and civil disturbance. 7, ;r',4;-, Er ', 2 The project will be majority-owned by ^, .. \ . '- . . .private investors, with Marriott operating the hotel under a 30-year agreement. It will be one AQL .I . . of the largest private sector hotels in Costa . 4 -. . - * Rica, and the only hotel in the San Jose area _~x j k .S 2e r ;)operated by an intemational hotel manage- ment company. i*fjR r. 2 H>"' ' '' 'The project is designed to meet the increas- 2J v - . - ^ s ing demand for hotel rooms for both tourist and business travelers to Costa Rica. In addition to bolstering tourism, the new hotel will stimulate the local economy, as it will rely = ; ~ on local goods and services. Construction MlGA's first ecotounsm project-Dosel S.A. Rain Forest Aerial Tram in Costa Rica tram will be a valuable research tool for the -. : scientific study of the forest habitat. The project enterprise's success should demonstrate that the rain forest can be preserved and protected and at the same time yield an acceptable retum. The tram will also provide jobs for almost 50 local residents. In J s A addition, the company will provide a strong ; T - '* ~ q training program for its local employees, _ including technicians and tour guides. The , - * project will also help develop a local network of suppliers for its restaurant, gift shop, and maintenance program, thereby further expand- ing employment opportunities. Mamort Interrnational, Inc.'s proposed resort hotel In Costa Rica 25 materials, telephone systems, and bathroom Especial Tintaya, S.A. (Tintaya), in south- equipment will all be procured locally. The eastern Peru. The enterprise will be 98.4 project will also have a regional impact, as percent owned by Magma, and minie employees ftirniture will be procured locally and imported will owIn the remainder. from Gtiatemalla and Mexico. Finally, a Magma will provide specialized technical. SLu1S1bsrllta amIount has b)een hudlgete.l to agawl rvd pcil dtcncl sstantiaely tamunt hasta beeans budgeto ged to d financial, and marketing expertise to Tintaya. extensively train Costai Ricans to manage an-id MIGA insurance covers Mavima against the operate the hotel. It will eventuallv emplov r o - n i I 1 1 1 u I I ' ) 15 ~~~~~risks of cuirreilcy transter, expr:)pi-i'tion,l atnd 340 people on a permanent basis, of wliclh 35 I will be Costa Rican nationals. Traininy war andz civil disturiwe. programs will be conidLucted both in Costa Rica The project will stinuLlate local enterprise and in North America. anl create additionial emplo\ mnet througl local procuLemenit o)f many of the processing Citibank, N.A. inptuts, inclidinig sulturic acid, tuel oil, and COSTA RICA electricity. MIGA issued two guarantee contracts for Internationale Nederlanden Bank, N.V. $9.7 million to Citibank, N.A. of the United PERU States for its loans to expand its wholly-owned subsidiary, Citibank (Costa Rica) S.A. MIGA MIGA extended $15 million in coverage to coverage was provided against the risks of Internationale Nederlanden BaLnk, NV. (ING) currency transfer and expropriation. of the Netherlands for its $13.9 million loaln to expand its Peruvian affiliate, Administradora de Fondos de Pensiones Integra, S.A. (Integra), Cyprus Climax Metals Company a p PERU a pensioil inagcment fund. The project expand the breadth of personal coverage MIGA issued guarantees for $50 million to offered to Peruviall citizens, relative to the Cyprus Climax Metals Company (Cyprus) to country's nine other such funds, from exclu- facilitate the privatization of a $154 million sively pension guarantees to include life and open-pit copper mine in southern Peru. Cyprus health insurance policies. Collectively, was insured for a portion of its equity invest- increased competition in the sector is expected ment in the Sociedad Minera Cerro Verde, to revitalize the insurance sector, boost capital S.A. As a result of privatization, employees will markets, and increase national savings. ING's have an 8.5 percent ownership in the mine. loan is covered against the risks of currenicy The guarantees cover the risks of curretncy transfer and expropriation of funds. transfer, war and civil disturbance, and expropriation. Newmont Mining Corporation Union Bank of Switzerland Magma Copper Company Mine Or, S.A. PERU PERU Magma Copper Company received $24 MIGA increased its coverage to $47 million million in MIGA coverage for its investtnent to Newmont Mining Corporation (Newmont); in the privatization of a copper mining and 1lMine Or, S.A.; and Unioni Bankl of Switzerland concentrate company, Empresa Minera (UBS) for their investments in the expansion 26 a~~~~~~~~ -: Mo~~~~~~~~~~~~~lqui M-auqw gold - .- ining faoliv in Peri of Mineri Yinacocha gold niiiii ngper tio" id the first MIGaA tcoverage of a toll toad in Peru]. Thie n-ew funids Will be ulsed to con- investment. The gularantee contract covers the strUCt anld opetate a new openi-pit mine and risks of Ctirrency transfer and expropriation. hieap leaching facility at Yanacocha's facuitiTepjctnerisispooedb Miaqui ore body, whichi is p~rojected to produce Iprgoanfiethrates,nds abouLt five miilllion toins of ore annuall1y. MICiA designed to expand and imiprove the operationi guaratee. cove theequiy invstmets Aand m-ainitenance of three toll m-otorways about NJewnmont and Mfine Or agains,t the risks of 1 20 kilomieters in lengthi, serving the northern expropriaition and war and civil distuirbance; UBS'S loan i.s i1SUired against cuirrency transfer mietropolitain area of Bu[enos Aires. Imipregilo I ~~~~~~will provide the engineering plans and tech- as well. MICA h~ad preViOuIsly issued gUaran- nology for road and bridge con-struiCtionl. It Witll tees t iNllwmontf, Mincor,a' Cand LBS fo also provide expertise in traff'ic monitoring and $33.2 illionfor Ynacoch's Carchugoroll collection. Conistruction of the new mining operations. ~~~~motorways is expecied to hiave a positive environmental imipact by increasing trafftic flow Impregilo, S.p.A. and imrproving the drainage systemi. ARGENTINA ~~~~~~~~Fuirthiermiore, ADS will have a positive Imipregilo), S.p.A., Italv's LargleSt ConStrueC- developmental impact. The proiject eniter-prise tionl Company, secuired MICiA coverage for is expected to emiploy more than 3,500 workers $5 miilion- fo,r patt of its equi1ty invkestmienit in during conistruICtioni and approximately 450 AuItopistas del Sol S.A. (.ADS) of Argentina. workers oni a p~ermanent basis. Most of the Th-is investment represents the firstL Italian project',, construction equlipm-ent will be inves,tor to receive M'ICiA coverage, M-IGIN5 SOUrced locally, directly benefiting first Coin1SUrance arrangement with the Italiain Argentinean sUppliers and their employees. export credit and inives,tment insUrer, S.ACE, 7. Green,wood Mills, Inc. Llovds Bank Plc. ARGENTINA BRAZIL Greenwood Mills, Inc. (GMI) of the United Lloyds Bank Plc. of the United Kingdom States received $16.2 million in MIGA has received MIGA insurance of $12 million guarantees for its equity investment in a joint against the risks of currency transfer and venture cotton textile facilitv in Argentina. expropriation for a shareholder loan to its The project enterprise, Tejidos Argentinos, Brazilian branch, Lloyds Bank of Brazil, to S.A. (TASA), has been one of the largest expand its overall lending operations. The loan denim producers in the Mercosur region. The will provide hard currency to help finance the project involves restructuring, modernizing, production of pollution control equipment and and expanding TASA's textile operations in domestic goods and services in the agricultural Argentina. IFC, which has been involved with industry. Lloyds Bank of Brazil currently TASA's parent corporation, Alpargatas, for the employs more than 900 natiolnals. last 18 years, introduced GMI to the venture. GMI's investment will enable TASA to Internationale Nederlandeni Bank, N.' increase productivity and improve efficiency at VENEZUELA its three existing plants in Buenos Aires, Catamarca, and Corrientes by installing new Internationale Nederlanden Bank, N.V. spinning equipment, weaving machinery, and (ING) of the Netherlands received $30 million looms. GMI will introduce modern technologi- in MIIGA coverage for its branch capital cal know-how in product innovation and investment in Venezuela. ING. the first foreign expertise in jeans washing. TASA produces bank in the countrv, will use the investment to and markets denim for the manufacture of establish its existing operations in Caracas as jeans, colored cotton fabric, and ho(me textile an official branch. MIGA covers ING's loan products. The enterprise's expansion will against the risks of currencv transfer and clirectly benefit local cotton farmers and expropriation of funds. domestic consumers. MIGA has issued cover- age against the risks of currency transfer, expropriation, and war and civil disturbance. Lloyds Bank Plc. ECULADOR MIGA issued its first guarantees in Ecuador for $24 million against the risks of currency transfer, expropriation, and war and civil disturbance to Lloyds Bank Plc., a British bank, for its loan to expand branch bank operations itn the country. 28 M- I..G.A. * The new IPA management information system (MiS) software was installed in two additional countries * Intensified IPA capacity-building programs TECHNICAL ASSISTANCE were undertaken, in Southern Africa through regional IPA activities and the SERVICES posting of a senior staff member to Namibia; in Latin America through the first reglonal MIGA offers a range of technical assiscance IPA network workshop in Chile; and in the and legal advisory services to promote private small and medium enterprise sector through investment opportullities in developing and the first global IPA workshop for the sector transitional economies. MIGA's Investment conducted jointly with the OECD Marketing Services and Legal departmnents carrv oLut these activities. MIGA's investment marketing and techni- cal assistance services are sharply targeted, fee- Intvestmentt Marketinig Services based activities that engage the primary clients-investment promotion agencies-in a The highlights of the fiscal 1995 technical process of capacity building for sustaitnable, assistance program were as follows: effective country marketing. A central focus of * Twenty programs were completed, directly these services is the introduction of modern benefiting 54 developinlg and transitional management and marketing techniques. The memberefiting54 countrieslsopiig 3o tr tional beneficiaries of these activities are primarily Africa s nationally-mandated promotional institutions, * Two major investment protnotion confer- but they also include potential investors and a ences were undertakeni, onl the development niumber of otlher initermediaries that promote of the mining sector in Africa and on the or facilitate FDI, including business chambers tourism industrv in the Arab world and associations, financial institutions, - The first edition of the African Mining business media, investment and legal advisers, and other consultants, government agencies, investment conditions, investment opportu- and international organizationst Over the past invtestmentky condtiones itnverstent o rtu- two years such entities, including IPAs from nities, and kcy business partners in theabu70cntishvejndMIAsGol mininig sectors of 20 African countries about 70 countries, have joined MIGA's Global * An early version of MIGA's planned Global IPA Network fora to discuss issues of common Investment Promotion Agency Electronic interest in country marketing and to identify Network, the IPAnet, was demonstrated live new initiatives Regional chapters of the on the Internet at a special event during the network are being formed to develop and annual meetings in Madrid execute joint work programs * Broader diversification of the promotional MlCA's investment marketing assistance work programs was achieved-regionally, focuses on three areas: investment promotion into Southern Europe (Turkey). the Middle activities, information dissemination on East and North Africa, and Central Asia investmenit opportunities, and capacity and the Balkans, and sectorally, through the building in IPAs. first South-Soutlh promotion campaigns organized to East Asia for Namibia and Cape Verde 29 Heads of African delegations and MIGA staff at the Agency's Africa M\iniing Inv'esnnecs Co'fJerence in TLsunto Investment Promotion Activities Canada, in May 1995. The conference built on the momentum created hy a similar conference MIGA's investment promotion activities held in Denver, Colorado, in June 1994. More include organizing promotional conferences than 400 industry executives tfromi North and associated executive training programs, America, Europe, anid Asia participated in the holding promotion strategy and investor Toronto event, whichi highlighted mining services workshops, and organizing investment investment (pportunities in ')7 African missions. MIGA pursues a sectoral and countries and showcased the first editioni of multicountry focus wherever possible to tester MICGA's CD-ROM oni this subject. Like the the critical mass of investment opportunities Denver conference, the World Bank, IFC, and needed to generate investor response, ensure nullmerous corporate sponsors suppo rted this cost-effectiveness, and achieve the widest event as well. Ml CA hopes this activity will possible collaboration by all interested parties. become aln annLIual torUll to promote invest- By applying this approach, MIC1A has already ment opportunities in the African minincg played a leading role in investment promotion sector. in the mining and tourism sectors. MICA plans to adopt a similar approach to promote InHOW-Up Site visits to West African c oountries South-Souith investments anid small and O(including Burkinia Faso, Cr)ie d'lvoire, and mediLum' enter-prises. m eGhana) in response to investor interest generated by the 1994 African miniing conter- MINING ence. As part of rhese site visits, MIGA mobilized participation by U.S. companies for In the mining sector, MIGA conducted its a SoLuthelrn African Development Cssmm1)unitV second successful investment promotion mining conterence in Lusaka, Zambiai, orga- conference for African coulitries in Toronto, nized by the European Union. 30 To prepare government officials and private sector representatives from Bahrain, business executives for the Toronto conference, Egypt, Jordan, Lebanon, Morocco, Oman, MIGA condUcted execLitive training programs Saudi Arabia, Syria, Tunisia, the United Arab in three locationr in Africa. These programs Emirates, and Yemen. The cointerence was covered such topics as the competitive interna- followed by investor site visits to Jordan, tional environment for mining investment, Lekanoni, and Syria, organized in collaboration eftective investment promotion strategies, the with the respective ministries of tourism and legal framework for mining investment, and other institutions. effective negotiation skills. Thirtv-five Tanz-a- b ' ' ~~~~~~~' ~The conference inclicled panel discLIssions, niani uoverniment officials pBarticipated in th-e roan government officials participated in the workshops, an exhibition, and individual first of these programs; 14 officials from Anola, Malawi, Namibia, an SOth Africathat hihlighted the tourism develop- ment strategies ot participating Arab countries, zttetndeci '1 sitiiilar proglraml ill JohannesbUrg ; ,, _ h ' tv ~~~~~Pro)moted iinvestm-ent opportUnlitieS in the andl 30 officials from Burkina Faso, Cameroon, po teinsmntporutesnth the Cenc-tr Afroic RBic, Cate dIoire, , toLurism sector, and reviewed regional and tLiinea GCinera-BArissau MliC, Nigter Senlregl, international sources of financing. In break-out 1nd Togo ittended a third program in Dakar. workshops, participants discussed such topics as 'nd To a d tthe promotion of investments in the tourism In collaboration with the OECD, MIGA sector and obstacles to such investments, or"ganiZed a similar traininig program for mining management and franchising opportunities, sector representatives from Central Asia and hotel privatization, and time-sharing as an the Balkans. Convened at the OECD alternative to traditional methods of financing Center for Private Sector Development in tourism projects. Istan1bul in June 1995, participants included MICA also completed a year-long program I 2- seniior niililinLa sectoir otticials fromi Alh ania, N1v otmlt( erln rga 12 senior mining sector'oicias l of follow-up activities to its Souith American Kaz-akhstanl, the KvrgIy7 RePLSIlIC, and Kazakhstan, the Kyrgyz RepLiblic, and - Tourism Forum, held in Brazil, in Octoher Rsomania, rellreseititl g state commii-ittees ot Romania, repreiLsrentinlst ommindutte iso 1993. One outcome of this forum was MIGA's geology,1 preciouIs mletals, andt indtustry; mlinis- tries peoeisione of assistance to Brazil's National tries ot ec: omllv andI foreit,n ecoiik.nmic afft irs o' ' ' ' Tourism Secretariat and the Governor's Office aiiid htatLe miintg-iiic entrerprises. of the State of Bahia to organize an inbound investment mission and workshop to promote TOURISM foreign investmenit in the tourism sector. Fifteen investors from Jamaica, ParagLua, the In the tourismll sector, MIGA oroani7ed the United Kingdom, and the United States visited first Conference and Exhibition onl Investmenit Brazil in November 1994 and met with Opportunities for Hotels and Tourism in the Brazilian project sponsors, financial institu- Arab World in collaboration w ith the Inter- tions, and top government officials. Arab Union of Hotels and Tourisim, the French-Arah Chamber of Commerce, the Inter-Arah Investmeint GUarantee Corpora- OTHER nlon, andl the Lebanlese businless magazine Al- tiknisnd t-e Thbiiese thrinee-dua',y event, eld O ther prograrni. conducted during the tiscal lktissadl %Vial-Aam(l. This three-viny evenit heltd In Dama!sCuIs, Svria, in Mari-chi 1995, aittracted year included a number ot activities designed to promote investment amngoi developing+ more than 400 participants. In addition to membper counitries. In October 1994, at the private investors fromii Eurlope, Northi America, i and Ja,an attedeesincldedovrequest of the As;.sociation of Foreign Investors and Japan, attenidees inClUded government aino3 31 MIGA MEMBER AND S ; K Category One Category Two Category Two Signatories, in process of completing membership Non-members BrS kpa . I-F I~ nd rn. 32 IGNATORY COUNTRIES a~~~~~~~~~~~~~~~~~~~~~~~~~~_ 4 kK AP A\p.l a , LAA.AAd_ u \d TJdll 2 R -t ~"' :l'. @. T± R U A A.e 1 | \; I r . R O n w r _I Pap d 2 tKRtk' T __ \ -u 4 SAIRd SP*AAA < k1 m..r Ga, 44 mdb.~~~~L9 Ep- , . . ftmo~~~~~~~~~~~~~~~~~~m - S 3 3 in Turkey (YASED), MIGA assisted the organization and execution of a conference on investment opportunities in the country and S Globl PACof,, ,,an, H promoted it as a gateway to Central Asia. Other organizers included the Government of ICzX Turkey, IFC, and the W7all Street Journao (Europe). The event focused on inbound and outbound investments in the region. MIGA also helped several member coun- tries to organize investment missions to East Asia. These included missiois from Namibia to China, Korea, Malaysia, and Singapore; anid from Cape Verde to Korea and Malaysia. Each Rep)esenrarmcs frorm more thun 40 coon iries panrticipa elC ri outbound delegation incluided senior govern- N1.As Global IA ColPrne in Madri ment officials, IPA staff, and business execu- tives. MIGA consolidated its contacts with IPAs, husinaess associations, an governmentio to custo e com unications WAs buines asocatons an goernen search, anid feedback facilities, it will contain agencies in East Asia, confirming their willingness to collaborate u'ith MICA in ~ directories, billboards, electroniic conterence, oranizing future investment missions. databases, and a reference desk. Initially, it uwill be open primarily to) IPAs and other intermedi- aries that promote and facilitate foreign Information Dissemination investment inl developing and transition Initiatives nmember counltries. Duriag this phase IMICA wvill test the network; connnect thle databases on During the last two years, MICA has FDI matters provided by IPAs, MIGA, and pioneered the introduction of iocderin indus- others; anid improve the system11 based on user trial marketing techniques and communtiica- feedback. Following this pilot plhase, the tions technologies into investment promotion, network wvill be mnade available t o the entire MIGA convenedl Global IPA Network fora to investor community (see paige 36). introduce these new concepts and technolo- MIC .A release d the first edition of it.s gies. With the endorsement of participating IPAs, MIGA began the developimeit of new bsD-Rnet s oe inestment opp ortLondt i Aican l state-of-the-art electronic tools for the bUIine s openiting conditions in Afric i > mininc, sectt r at [lie ToroOatM0 nl )tr dissemination of infornationi on investment m sn ence. The CL) wvas develoiped in collabor:ition with African governments, millng puL IHca- At its Global IPA Network Conference an.d tions, geological surveys, anL private firms. It Workshop in Madrid, Spain, in October 1995, offers a large and easily-accessible library of NIIGA presented the prototype of its Global MApS, documents, and statiStical informarim. IPA Electronic Network (IPAnIet) to IPA The CD mncor-p0wates powerf-tl function,Ilities representatives from more than 40 counltries that enable users to access specific intormation using a live Internet connectioi. Inten dedl as a on geology, mineral occUrrences, intrastruICture, global information clearing-hCouse an d commu- and political and adminnistrative c onditions. It n ications network on foreign investment, also includes hundreds of documCents incltitling MICA expects the IPAnet to become opera- mining laws, investment codes, and informia- tional in the first half of fiscal 1996. In 34 tion otn investment opportullities, business effectiveness in marketing their countries to operating conditions, infrastructure, anid investors. financial services. MICA expects this CD to One of MICAs most important vehicles for become a prototype for other CD-ROMs in cpacity building is itsnanagement informa- other sectors anid regionis. tio n system (MiS), specifically designed for MIGA continued its efforts to establish a IPAs. The MiS software allows IPAs to track global forum for IPAs to share information and and manage their relationships with investors develop joint work programs. At the Madrid more effectivelv and to provide prompt, workshop, African IPA representatives whio customized responses to all investor inquiries. had already met in Tanzania in March 1994 to MIGA delivers the software as part of a form a regional chapter of the IPA network, package of technical assistance that includes worked withi MIGA to develop a work pro- institutional support, training in investment gram. In May 1995, MIGA staff conducted a promotion skills, end-user training, system workshop in Chile with representatives of the customization, manager training, and remote Latin American IPAs to discuss the establish- technical support. ment of a regional IPA chapter. MICA introduced the MiS in IPAs in The Madrid workshop was preceded hy a Uganda and Zimbabwe in fiscal 1995. MIGA two-day conference on the glohal investment also continued to provide technical support strategies of European firms in service indus- and training for operational installations in tries and the implications ot the changing Malawi and South Africa. In conjunction with dynamics of foreign investment activity for the installation of the MiS in Uganda, MIGA developing countries. The conference featured established a regional MiS technical support panel discussions on market trend.b and global facility in Africa thronghl a South African investment strategies in which executives of information technology firm. It also laid the leading Europeani companies in the toLurismii, gro undwork for possible fItul-e itroduction of telecommIunications, financial services, and the systemii in Fiji, Ghaia, the Philippines, intormatics sectors participated. Other panels and Tunisia. fOcused on the growing role of small and Beftire introdUCino the MiS in a COUntry, muediumi-size companies in international . NICA conducts institutional assessments of investmllent activity and thc chaniginig indali- interested IPAs to exaimine the potential fit ties of investmeit, such as subcontrLactin, between the MiS and the IPAs' CLirrent techniioloogy licensing, andl bIyback arrange- mariagement and information processing approaches. Thene assessments often provide the basis for advice on strategies and institu- IPA Capacity Building tional arrangement., for investmiienit promotion. SucIh was the case in TuLnisia where, in collabo- While the underlying objective of all rationi wvith the Foreign Investment Advisory MIGA's technical asistanice activities is IPA Service (FIAS) of IFC and the World Baank, capacity buildinc, some services-such as MIGA assessed the coulitry'> currcnit invest- holding strategy workshops and training IleLt p0rootionH instItUtions and strategy in programs on investmenit promotion for IPA the context of thc national IPA's request for staff, assisting institutional plannino, anzd the MiS. A joint FIAS/MIGA capacity intioducinig moderin management information building workshop for the Tunisian govern- svstems focus excluIsively on improving IPAs' menIt focusedl on the findings of this assessment. 35 1 :IPRnef Homepage I MIGA Mu fii aftrrIl krwestmnent Guarantee Agency The i cmPromtionA ecv NeA" M~et) is a global informati jinge ~M cmmuncatinste .oi;fcian direct invesenbygto i yth ti4tterl Wesx~qptGuaarle~eA '~v-.(.M1CA), a,i1i6mber oftthe W~k aiUk-czow~UD ,ti d~#edto b~I MiGA's sharp agce fsiulating witwll ae~ ditect inVSM4,.foreign partnership in inthe e erging n4 The IPAnct design concept is the product of two ye-ars of MIGA thinking and market testing wth a I b4Iaudience of Investment Prouioi Agencies (IPAs) ad other k;>y inptituitons wand "inabout 70 econiomies. 1PAn the key players in tlhe inv wvorld (c t ie.lntutions, govermmen nyias)to share info 'teynrnnally w~4l4Aot or it n~o conduct ftie I*etnciImuuicewt~bhrw~ whh thewy -ea &,d o,an 1we no prohibitively cg,~ obtain. MIGA expects to achieve this because of its trusted honest broker role and privileged access to infor1naten-as an arm of the World Bank GirlaP. 3 6 M4ICA also provides instituAtional advice MIGA contin1ued its efforts to establish and capacity-building support to IPAs incdepen- closer links with the United Nations Industrial dent of the MiS. MIGA staff also are fre- Development Or"anr--ation (UNIDO) during qtientlv involved in training activities for the fiscal year. At the invitation of UNIDO's member country officials involved in invest- Investment Promotion Services office in Paris, ment prolotion. During fiscal 1995, MIGA MIGA participated in EUROPALIA '94. an participated in an investment promotion investment promotion conference on Latin planninlg workshop for the Philippines, held at America's agro-indIistrial sector organized by the couLntry's consulate in Newv York, and UNIDO antd the European Union. MIGA hosted a trainin.g seminar on trade and representatives also) attended a meetinig of investmenit promotion for officials fromi heads of UNIDO's Investment Promotion Honduras. MIGA also helpedl to arrange the Serviices offices in Vienna and met u ith secondmennt of an officer fronm the Malawi IPA UNIDO's director general and the head of its to WESGRO, the IPA responsible for proi ot- Investment and Technology Promotion ing investment in SouJth Africa's Western Division to discuss opportunities for increeased Cape province. MIGA assisted WESGRO and collaboration. the Malawi IPA in defininoa the terms of I MIGA also began1 to) dramv 011 Japanese reference for the secondment and arranaed World Bank funiding to cover the officials gapital or the travel and subsistence costs. Anotlher example development of the IPAnct, MiS program, and nesw electronic intormation dissemination is theSwedecrp-fuded seoodmen of atool, wvith a v iew to future cost recovery fro)m senior MIGA staff memiber to Namibia to provide institUtion-bUilding ,pport t, the usel tees and other external sources. governmenrs of Namibhia and orlter southern Finally, MIGA continued to strengthen its African couLntries, relationships with corporate spoonsors wlho participate in and provide funding support for mosr of the agency's techniical assistance Extwrnul Collablrataoie MIGA's teclhniical assistance services coimpleuiienit the programis and activities of other donor institutions, Incluidinig the World Bank and IFC. MIGA undertakes mi1any activities in collaboration with these institti- tions, and IDA credits so(metinies indirecrly sIppoCrt aCtiVities such as the introduction of the MiS in Malawi. MIGA actively seeks the support of, and involvement by, other develop- nienlt inStitL-tionlas and private sector entities. )7 \.. . - OFFICERS OF THE AGENCY Stig(e to right): Leigh P. Hollyw,tood. Vice Pyestdcut, (iitrtatte.s Ah!ro lidoz lExccutive' Vi'ce Pteitd ett Lui.s D)odero ice Pteidett attc CIcueri Cr,tttisel Stuttdtn,q (I ]et to rig/itl): W' JohntGi (Ifl[h . Chief Fmnitttil eutoc ,Admititisttaiti c )fhcci: Sttk- LV Chiij, .Actitwg SccctcorN Mcrtl Hatgn blesilcu M keiQS ic, 38= :^i FINANCIAL STATEMENTS OF THE MULTILATERAL INVESTMENT GUARANTEE AGENCY Balance Slheet 40 Statement of Incomiie 41 Statement of Capital and Retained Earnings 41 Statement of Cash Flows 42 Statemiienit of Subscriptions to Capital Stock and Voting Power 43 Notes to Financial Statements 46 Report of Indepen-deint Accountants 52 39 Multilateral lInvestmiient Guarantee Agencv Balance Sheet ]ine 3. 1 1905 and1 I Line 30, 1 094 Expressed in LItLIsands A lUS doillar 1 995 1994 Assets CASH .................................................... $ 5,5 29 $ 6,563 INVESTMENTS - Notes A and B Obligations of governments and other ofticial entities ............. .............. 6 I 1 46,99 1 Time cieposits and other obligations of lanks andfinancial institttIS ....................... ............................. S ,503 79 92 143 7*4 126,283 NONNEGOTIABLE. NONINTEREST-BEARING DEMAND OBLIGATIONS - Note C ................................................... 10I2, 114 98, 138 OTHER ASSETS .................................................... 754 558 TOTAL ASSETS .....................................................$252,131 $ 231,542 Liabilities, Capital and Retained Earnings LIABILITIES Accounlts payable and accrued expeises ........................................... $ 2,275 $ 3 356 Uneariled premiums and commi[1tment fees - Note A ............................. 8,960 6, 363 Reserve for claims - Note A .................................................... 16,664 6,308 Total liabilities ........... ......................................... 2 7, 89 9 16,027 CAPITAL AND RETAINED EARNINGS CaLpital stock - Note C Authori.ed capital (100,000 shares - 1995 and 1994) Subscribed capital (96,382 shares - 1995; 94,948 shares - 1994) ........ 1,042,853 1 ,07 3 37 Less uLncalled prti)n of .............................8.................... 8 3 4 821,870 Less amounts d1ue on called subscriptions ............................................ 1 731 207,839 2 04,736 Pa ments oll account o f pelnding sulbscriprions ........................ ............... 4 30 1,442 2082 69 20 6,178 Retainieed earnings AccUmulated net income ....................... ............................. 1 3,448 10,853 CuIMulative translation adjustments .................................................... 2,515 (1,516) 15,963 3,337 Total capital and retained earnings ................................................ 22 4 3 15,515 CONTINGENT LIABILITIES - Note D ................................................... TOTAL LIABILITIES, CAPITAL AND RETAINED EARNINGS ........$ 52, 1 31 $ 31,542 See Notes to Financial Statements 40 IL LII aIci a! 1¼ .IIEIILlc Lil ULiM ran te AA,tn 1v Statement of Income Fr rh1' ticlal carI .ti: nled iLiine 30, 1"')5 n Itiiie 30 19)Q4 Es prr,.'el in is, 'Cs. md- &t US ,I1htI, 1995 1994 INCOMIE Premiumil and comiiiitmcnt fee income - Note A ................................... 14,377 $ 9,873 Income from investmenrts - Notes A nd B ............................................ 731 4,730 NMiscellIneouLs incoMe .........................................5........................ ' Total income ................................................................................ 21 .770 14,608 EXPENSES Provision for clai[is - Note A .................................... 0,251 3,767 Administrative and other expenses - Note E ..................................8,, ,,, 92 4. 8,468 Con1tribution` to special program - Note E .................................7.4......- 794 Total expenses ..................1.....................9................................ i,175 13,029 NET INCOMPE ..........,.. , . . , . $ 2,595 .. S 1,579 Statement of Capital and Retained Earnings Fl.r thie f,c.dI eur, co.dOt 0 'int 30, 1)95 and tIn',e 30, 1994 E ;Irc-sed in i,.inmld, oi >,l1xrs 1995 1994 CAPITAL Balance at beginning of fiscal vear .......................$ 206,178i $ 190,054 New sub.criptions ................. , , , , , . ............. 3,103 15,942 ChanrLes oll accouLIt of pending subscriptions .................................,,.,,,. (1,01 2) 182 Total capital.5... .......... , 208, 269 5 206,178 RETAINED EARNINGS Accumulated net income Balance at beginning o iscal ear ...................................................... $ 10,853 $ 9,274 Net income tor the fiscal year ......................2... , .. 2,595 1,579 13,446i 10.853 Cumulative translation adjustments Balance at beginning of fiscal year ..(1,516) (2,972) Translation adjustmenlts for the fiscal year ,.,.,.,,,,. . , 4,031 1,456 2,51 (1,516) Total retained earnings.. 157................................... 15.'63 9337 See Notes to Financial Statements 41 MNUltilateral Investinent Ultlarantee Agency Statement of Cash Flows F,- the tit.,al \ear, ended l ic ie 10, 1995 and time 30, 1904 Exr-s'ed in ri `1r.:inds . t US 1,4I IIr 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net income ........................................................$ 22,595 $ 1,579 Adjutstments to reconcile net incom-le to net c.ash Provided bv operating activities: Provisioin i for claims ....... ................................................ I 0.- 51 3,767 (Accretion of discounLts)) amortization of premiLuIs, lnet .................... (94) 307 (Increase) decreaise in othel assers ..............................(....7...........7....... I')f) 77 Increase in unearned premiulmls and comimitment tees ........... ............ 2,47 2 2,00:3 (Decreazse) increase in aZcCOunts paiyable ............................................. I ) 19 12 Net cash provided bly o perating activities . ................................................... 13,9)14 9,645 CASH FLOWS FROM INVESTING ACTIVITIES: Maturities ........................................................1.,77.687 10,672,731 Purchases ........(16,794................................................ 16,74,441 )(10,691,504) Net casi provided 1v investing activitives ................................................... (15,754) (18,773) CASH FLOWS FROM FINANCING ACTIVITIES: Capital subscription payments ..................... .................................. 645 11,9223 EFFECT OF EXCHANGE RATE CHANGES ON CASH .......................... 161 (636) Net (decrease) increase in cash ................................(....................... 1,034) 2 ,159 Cash at heninnin'g of fiscal year .................................................6...... 6,5 6 3 4,404 CASH AT END OF FISCAL YEAR ....................................................... S 5,529 $ 6,563 See Notes to Finiancial Statements 42 \ILI ItII.IIlrI1, II JI \ L IMIItVII Li LI, It IlIIL CCi Statement of Subscriptions to Capital Stock and Voting Power Ex I,r hed i n -0L .1iicb. it b' JI d,II ar Subscriptions (Note C) Voting Power Amount Number 96 Total Amoont Amount Subject of of M-embers Shares Subscribed Paid-In Due to Call Votes Total ...l .....x...i.... ... .... 58 $ 6 258 1 26 $ - $ 502 215 0.-IC I. . 157 2,021 404 - 1,619 164 0 11 Argciitin.i .......1,254 1,568 2?,7(14 - 10,554 1,431 12-0 A:-erhaiil.in ... 115... . ....... 1,244 24Q - 95 2202)5 BRihviinns. Theu ................ . 1C0 1052 2 16 - 860 7 0.23 1S.ihriin ............. ... .. ... 7 7 8353 167 - 6L,6 25 4 0.21I ... .. .. ..340 3,679 73? ,Q43 3171 0.4 3 RirhaJo .. . I5 36 147 .559) 245 0).21I BLiri is L..... 2 33 2.~_2I 504 - 2,017- 410 0 54 BC I:i iLIII ... .... .2L :3 0 21,965 4 ,303 - 17,572 2,207 IsS Belix. . .. ........ .. ... 50 541 10 - 4 31 270 1 Benin .. 6 660 1 32 528 A 0.210 Bolix i,................. ... 125 1,553 271I .062 52 0.25 Rr~~~~w,ina ... ~~~~~~~~~~ 50 541 lO -1 4 33 -22 0.19 Br;i:l .............. .. 1,479) 16,003 3,201 - 1 2,802 1.656 1.39 Bi10,irin' .. 65 3,949 790 . 3,15942 0.46 Burkin~i FRiM, . . ... .. .... 61 660 12 55 2 8138~ 0.2?0 Utineinuri . . ~~~~ ~~~~~~~~107 1.135 212 - 926 4 0. 24 ....d ........ .. .. 2,965 32016,41( 2 5,66 5 3,142 2.64 iCapc Verde- ................. 50 541 108 43 27 0 19 ChivI.c ... .. .... . . ..... 485 5,24.8 1.050 -4. 10 Q,o 0 56 Chiinj.' ................... . 3, 18 35,95 3 61,791 - I2 7, 16 2 3,3 15 78 ..n~ .... ............ .. 65 10.3 141 -5 62- 242 0.20 (X'q't Rvn' ...... 1i I n12(6 _2 3 -1,013, 201)4 0.25 Cnti.. .. ...... ........ 16 ,23 405 1,6 186 364 031I CyPru .... .. ... .... ..... 104 1I 2'S 22 .000 25~1 024 C:ech RUpILih1IC .. .. ... 445 4,.)1 5 963 3,8 522 052 [(CI11mir1k .. ..r..... . ... . 1 I a 769 1,554 6,215 89L)5 07 75 I)oIniHi-Ic. .. 0 54 1 10 - 453 3227019 Eciu,dor ..... .. .18.. ... I' 1,969) 594 1,5 75 359 0.30O Ei,vpt, AiMh RepbliIC of.. ... .... 459 4,966 995 -) 1,97 3 6136 0.55) El SalIVAdor . . ... .12.. . .... II2 1.320 2604 . I ,0o 209 0.2 Eqjialt,it,iI1 CUime; .. ..... 50 541 lO .1 45-,3 227 0.19 L ELtoni,i ...... . ......... .. 65 7053 141 .56,2 2142_ 0).210 Fibh, pi.i ... .. .. . ..- 70 7 57 152 60 5 247 0.21 Fiji ........71......768 154 .614 248 02 Finlaind ..... .... . .. 600 6,492 ,20 - 5,19 77765 Fr.ince .................. ... 4,660 521,5s5 10,51 is 42.1067 5,037. 4 23 G.mnhiii, The . 50 541 1 08 -431 22I17 O0 19 Gaeorc_,ia . . . ... .. .. ..... II I 1, 20 230 96 25 0.24 1(1e11n\. ... .5 ,07!1 5 4,868,, 10,Q73 453,59 5, 24s 4.4 1 Gilih,u .......... .S4 2,651 53i0 -2.121 4 22 0.15 Greecc ....... ....... .. .. . 280 3,0 30 606 2.424 4 57- 0.3o, Grelnada . .. 50 541 1 05 433 227 0.19L OLIN\,i1, ........ .8 4 909 12 - , 7 26 1 0.22- 4 3 N I UIII t I :1,t Ie ILI\ --:-L 1 I: (. I tl 1 I ttl[ l IL\41t Statement of Subscriptions to Capital Stock and Voting Power Junu 3V0 1995 Expn- LlI - iill bilatfl.h t li t't UOS dt1i. Subscriptions (Note C) Voting Power Amount Number ", Total Amount Amount Subject of of Members Shares Subscribed Paid-In Due to Call Votes Total H,d i rI.. ..................... .... 101 $ 10 ,i 81 2 $ S,4 2> 2'3 HuivI y-J .... 564 102 1,220 - 4,8S2 741 2.62 Ibdiia ..................... 3.04. 32.97.. . 0,5 I6 - 26 3S3 ,25 i 9 I I i ...111 L . .j .... 1,C49 11,350 2'2,2 9,80- ') l.22o 1.03 lI;IAuIJ ... ...... 309 0)9 d> 3. 95 5%4 2 4 ilc ............................. 474 5,1 29 1 .05 4.104 651 i5 ........ ..................... .. . ?",820 30,51 2 6,122 - 24.4K 2 0 897 * Jamill,ical ......................... 181 1.58 391 - 1,567 35S C. i3 J;a"pan --..... ......... 5.095 55,1 28 1 1.",2- 44,122 5.'2 2 4.43 Joirdan1 .. 912......... ..7 10...... ..2...... .3.. .. ' ) { I 2 1 I - . 40 2 4 K;a:alkhmsr;in .................2........ .2. 9 2,61 45 I1.;09 30 0.32 Keny 1..,372.1.... ............................... I - .4I67 349 0 29 Korca, Relp-bi- C ...........I.. - 449 4.55S 9711 3,S,7 620 ( i K w, \I it .32......................... 1) 1 0,261 2.013 - I050 1.127 2.3 ii>\- R pihl.c .6.62......................... I s 3 I i, (60 _2i4 . 2i Lehan,.,n ......................... 142 1,536 307 1. 22 319 0 7 Le>uthi 5.......................... 0 541 I2 - 433 22 7 0.1 Lih ........................i. . 549) 5i 4C 1 i1S - 4,75 7 26 Ctl l ithuania,. .......1.................... 0 1.147 229 - 91 2>3 . 24 Luxeihiboiir, .. ................. ....... 16 O 1,255 2I- 1,04 293 2.25 MaICedLinia, FYR t .............. .i...... 50 341 108 - 433 ' \tadau.is.ir 1 1 S2 21 0.277.0 .......2................3.. I O \t;i:ilw.i . ............. .. .S 3 13 - 26 2 4 0.21 Nahl\'.l .... ....... ..... ......... >i,9) 0-'65 1.233 - 5,012 75 2 .4 .Ia ..i .................................... )1 76 7 ,i 7-1 25S ..l.t ll 16... ........ ....... ...2... . .. .1 N k1it itini;1 ...1....................... 6 3 6S I 6 546 240 2-2, NMiatrititis ........... ................ 941 15. - 7 3 204 0.2 Nlicr(iv.n io Fed. l. Stte', t .. -i41 108 - 433 219 Nloiidua . . . . ...... 96 1 >39 205 - .31 7 3 2.23 Miricc(i .4........................... 4 34 3,6 I - 01 5 .44 Nii:aillibiue .............1.......2....0........ 105010 - 042 274 0.3 Nanmihii ......................... 127i 1 ,1 i5 23 - 920 284 0.24 N pil . ........................ 69 i47 149 59 2 46 C.21 Netherk.iad> . ........1 ..........2........ '.1(9 '354069 4.694 - 18, 775 2.346 1 .97 NiaagLia ..... ..1124 22...... ...1.. 15...." I C 3 279 ) 0.23 Nigeria ................ ... S44 9 13 1 S26 7,306 1,02 1 0.86 Noria 6......................... 691) 7563 1.513 - 6.20 - S , 6 2.74 m111an1 .........a ................ 94 1 I >Is ' 204 - 14 2 I 2.5 PAk istan ... ................ ..... 660 7,141 1,428 - 5.7 1 837 0.7 Piapu1-a New\ GLuIn1e> ........................ 96 1 39) 2'2 S 8]31 23 . 23 Palrac..ac 6.17. . .................. ... 1 -, 3 693 2 . Peru] ......3..37.............. ..... 3 , 4 36 27 - 3 2 9 aL O.4 Ph Fiiprin ... .................. . . 484 a,2 3 7 1.2 4 - 4,190 661 O. 56V Poland ..........................7. 64 8,266 1,653 - 6.613 941 0.79 Portugal . .. .. 3 2 4,1 3, 306 5i9 0 47 44 .\ tiuttiLarcr,i lnxC4StnICnr UtLarantce Akgencv, Statement of Subscriptions to Capital Stock and Voting Power Linie 30. 1903~ Expre'-ed In NthoninG'd4 I. 5fU dollar Subscriptions (Note C) Voting Powver Amouint Number %t Total Amount Amount Subject of of Members Shares Subscribed Paid-In Due to Call Votes Total Romnia111 ........ .5 ......~55 8 (OOS 1 I i01 5 4,804 73 0.61 Rii'sian Federation . . 3,137 I33, 42 6,768 27-,15~4 3,314 27 St. LucIia. .30. ... . ..... 541 108 43 3 22I01 St. \'incent and the Grenadines.... 50 541 108 -4 33 _227I 0.19 SaLditArnau ........... 3,13- 3394 2 6,7-t88 - 27,154 3,3 14 2.78; Se .a . ................. 145 1,6i14 1 .255 32 0.2 SevcheileL ......... ..... . . 5 0 541 108 -43 3 27 0.1IL Slovak Rerublik 222 2.402 480 1.9c)22- 390Q 0.34 Slosenija . ... .... 102 1,1I04 221 -83 279 0 23 So'Lrb Aftrii ...... .a........ 943 10,203 2,041 - ., 1627 1,120 0.94 Spain . . ... . ... . ... ...1,285 13;,904 21,781s 11,123 1,462 1.23 Sri Lanka................... 2 71 2,932 386 . 2.346i 448 0. 38 SLIdan ...... .... 206 220446 -1,78338 0.32 S\%j:iland ... .... ............. . 58 6128 1 26 .50-2 [U 0.20O Sweden ... ..----- . ..... 1,040 11,350 2,270 . 9,080 I ) I, 1.26 1 03 SN%itrerlan,! 1,3. ... . .... .. . .00 16,2 130 1,246 - 12.984 1,67 7 1.41 Tanizania . .. ... . ... ... 141 1,526 303 - 1221 318- 0.27 Toc-O.7 a33 167 666, -254 021I Trinidad and Tob-ago... .20.. .... 1,3 2,1I96 430) 17 57 3810 0C32 Tiinicia .................... 156 1,688 3 V 1,350 33~3 0.26 Tiir-ke,... . .. 402 4,0 1,000 ;. 009 630w 05~4 Tiirkilei'tanmr.66.............7 14 143 I 571 243 0.20O L nd.............I..... ;2 1.42 28n .-S 1, 142 309 02 ukraine.. ... . .... 764 8.26, 1,65 3 ( ,61,I3 Q41 079) United Ar.Th E,iiimatev37 .0 3J5 'U 59 046 United Kin-iii . . 4,560 32.5856 10,17 42.06n V 42 Unlite.1 Star... . .... 20,5 1') 2212,0 16( 44.404 t 177,612I 2 0,6(06 171.3IL ..trii . .. ..i... 202 2, 1 66 43 .) 1,7 48 37.9 0.32 I :l'eki.t,in ... 75.1894 0 1,5 14 52~ 0. 30 \.inii:itii . ... 50 ~ ~~~~~ 341 108 .43322 0.1I0L V'ene:u,l ii. 1.4-7 13~,440 3.066s 12,33 1.0 1.3 Viet N tin 'I _ 380~~~~~1 476 .,04 0 0.3 \Xe'tent Sitnot .1 50 541 108S 43 227 0. 10 ZaireC . .. . . 3361 3 ,658 - 731 2.92)7 315 043I Z,tnihi,i ... . .~~~~~; 18 3,~441 6 i88 ,3 493 0 42 Zintbahne .. ~~~~ ~~~2 36 2.i3a al 2.242 4131 O 0) 5 T. Il llw C QQ 30 i~S 1,0423 '07 a, 71 I 342a ItO3t 10020O Totail - tLine, 30, 19)4 . 94,048; $1,027,3 37 8 20 4,736 S 7631 I 2187 16, 365 III n 'It c'liitlc'lll n Ze 8,IIIL (lu c. Liilirie- titij Itt I in it:rarcitic.] 111. k, nico1tict1 in] ti. Itl rhe PIc'Cc.. 'Ic,mI.r ctccIl'i]ifrLc.jlirciliit.init. G1I $0 1133 u1 Lint, $I 6200, cll o in inL i-IL n11 c' ,ccc' ct, ni,iltcriri'tIf kcrqcclic .It B-1 ,.ni,i t H,r:,ut. ,. it I SitI.CC0 cxd FeIn,] c R,uii-lic .t`i Yuw- h% i,i t4erhu, cit, Nln,'n,ienccr 1 $1700C See Notes to Financial Statements 45 Multilateral Investment Guarantee Agency Notes to Financial Statements Statement of Agency Purpose The Multilateral Investmenit Guarantee Agency (MIGA), established on April 12, 1988, is a member of the World Bank Group. The Agency is designed to help developinrz cotintries atrract productive foreign investmenit by both private investors and commercially operated public sector companies. Its facilities inchicle gularantees or insuranice against nonicommercial risks and a program ot consultative anSd advisory services to promote improvements in member cou1ntries environments tor foreign investmeit. Note A: Summary of Significant Accounting and Related Policies MIGA's financial statements have been prepared in conformity *-ith International AccOuLntilng Standards. In the absence of sLIcIstandalrds, then, subject to relevant legal requiremenits, the policy adlopted is that considered most appropriate to the circuLIMstaces of MIGA having regard to the accountingpriinciples usedi in the United States and the practices of other international insurance entities. The following suLImmary of policies azdopted by MIGA is provided t o assist readers in the interpretation of these financial statemeits. The accouinting policies followed are consistent in all material respects with generally accepted accouLntin)g principles in the United States. Translation of Currencies MIGA's firiancial statements are expressed in rerms of lnited States dollars solely for the ptirrose ot summarizzing MIGA's financial position and the results of its operations lfor the convenience of its mem1bers and other interested parties. MI1GA is an international organization that may condluct its operations in the currencies of Al its members. MIGA's resources are derived fromil its capital and retained earnings in its members' currencies. MIGA strives tto minimize exchange rate risks in a multicurrency environment. A, sucIh MIGA attempts to match its contingent oblioationIs in any (one curreicy with assets in the same currency on a pro-rata basis. Accordingly, MIGA may periodically undertake currency conversions on a pro-rata basis ro march the currencies uLndertyinlg its reserves with those of the outstanding contingencies. The purpose of these conversions will be to miinimi-ze currency exposure that may ocCul througLh operatiois. Otherwise, MIGA will n1ot convert one currency into another except ttor ssmall amounts required to meet certaill operational needs- Assets anId liabilities are translated at market rates of exchange at the end of the period. Capital sUbscriptions are stated in accordance with the procedUres described below. Income and expenses are generall1 translatedI at an average of the market rates of exchange in effect during each month. Translation adjUistments are charged Or credited to retained earnings. Valuation of Capital Stock UnJer the MIGA Convention, all payments from0 members subscribing to the capital stock of MIGA shall be settledl on the basis of the average Value of the SDR in terms ofUtliited States dollars for the periodJaMnary 1, 1981 tojune 30, 1985. such valLie leilg equal to $1.0827 for one SR. The Convenition further states that ten percenit of the members' shares he paid in cash, in frcely 46 Multilateral Investment Guarantee Agency Notes to Financial Statements convertible cUrrencies, except that developing member couIntries may pay up to a quarter of the ten percent In their own cirrencies. In adidition, another ten percent of the members' shares shall be paid in the torm of nonnegotiable, noninterest-bearing promilissory notes. The notes are denominated in freely convertible cuirrencies andl are d Breaich of contract protects the investor against the impossibility to obtain or to enforce an arbitral or ju.ldicial decision recogni:ing the breach of an obligation by the host government. Investors may insure projects for any comibination of the four ty pes of coverage. MICGA g uarantees, othier than those issueId as r einsuraince, cannot be terminated u1nilaterally by the guarantee holdter within the tirst three \ears from the date of Issuance. Premiiium rates applicable to issuedL contracts are fixed for five years- Payments against all claims under a guarantee may not exceed the maximum amount of coverage issuel Utnder the guarantee. On Fehruary 8, 1994, the Council of Governors approved a resolution increasing the maximLium aglgregate amoun.t of conitingent liabilities that mav be assumlieed by the Agencv from 150 percent to 350 percent (risk-to-asset ratio) of the sum of the Agenacy's ulnimpaired subscribed carpital and Its reserves plus sucICh p rtion of the insurance cededl by the Agencx' through contracts of reinsiranice as the Board of Directors may determine. Such increase w as to be accomplished in two stages: ( i) an increase to 250 percent shall he effective immediaitely (accordlinglV, at J]une 30, 1995, the maximumi level Of guarantees outstanding couldd not exceedl 52,702, 160,000) and (ii) an increase to 350 percent ik to be considerel by the Boar olt Directtors once the sum o f the Agency s actual level of contingent liabilities anld commitmenIts plus those aproposed contracts which the Agency may assuLIme will go forward based on the operations approved by, or concurred with, thr Board of Director-s has reached 240 percent of the suLIM of the Agency's utnimpaired subscribed capital and Its reserves plus sucIh Portion of the insurance ceded by the AC'encv as the Board ot Director-s may determine. Subsequient to jtine 30, 1995, the Audidt Comllllmittee of the Board of Directors coIncUrred with Maniagemilenit'S diecISisIo tO reqtiest the Board of Dinectors' concurrence to increase the risk-to-asset ratio froim 2 50 percenit to 350 percent. Tlils increase IS expectedl to be conCurred by the Board of Directors early in fiscal year 1 996. Contingent Licbilin'. The miaximuiI amoiunt of contingent liability of N'IIGA undier gualantees insuedL andi outstalnlding at Junle 30, 1995 totaled $1,622,892,000 ($1,048,335,000 - 1994). The MaxiMiLm amount of contingent liability is \ICGA's miaxinum expostire to insurance claims, which incltudes "standby" coverage for wvhich MICA is comm11l1itted hilt n()t currently at risk. At June 30, 1995, MIGA's estima1te of its "aCtual CXpOSUIe to insuainCe ClilmS eXClusivie ot standby coverage is $1,150,156,000. At June 30, 1995, approximately 86.4 percent of the contingent liability' represents guarantees issued which will expire in or aLtter fiscal year 2005. 49 Multilateral Investment Guarantee Agency Notes to Financial Statements The composition of the contingent liability including "curren-t" and "standby" coverage under guarantees issued and outstanding by host country and by guaranitee currency is summarized below: Guarantee CLrrency (in US$ thousanids) US Deutsclhe French Japanese Pounds Host Countrv Dollars Marks Francs Yen Sterling Total Pakistan $ 126,510 $ 30,711 $ $ 1,630 $ $ 158,851 Argentina 150.160 150,160 Peru 138,146 138,146 Brazil 106,970 106,970 Turkey 93.400 93,400 China 79,482 79,482 Jamaica 70,223 70,223 Czech Republic 26.480 39,976 66,456 Tunisia' 64,800 64,800 Bangladesh 19,800 44,779 64,579 Poland 55,011 55,011 Philippines 55,000 55,000 Indonesia 51,458 51,458 Slovak Republic 50,403 50,403 Trinidad and Tobago 50,000 50,000 Uzbekistan 50,000 50,000 Guyana 49,878 49,878 Chile 47,300 47,300 Costa Rica 31,935 31,935 Venezuela 30,000 30,000 Honduras 29,959 29,959 Ecuador 24,000 24,000 Hungary 7,824 14,933 22,757 Viet Nam 13,500 13,500 Uganda 11,705 11,705 Morocco 9,900 9,900 Russian Federation 9,900 9,900 Ghana 9,850 9,850 South Africa 8,500 8 500 Tanzania 8,308 8,308 Kazakhstan 4,590 4,590 Bulgaria 3,348 3,348 Madagascar 2,057 2,057 Cameroon 466 466 Total $1,488,340 $ 46,110 $ 2,057 $ 46,409 $39,976 $1,622,892 I. lncludcs rsinsurance of $ 14,Q562,0Q h ECGI) As of June 30, 1995, additional guarantee capacity amounting to $210,000,000 has been committed ($140,000,000 - 1994). 50 Multilateral Investment Guarantee Agency Notes to Financial Statements Claim Activity. As of Jute 30, 1995, there have been no claims lodged with the Agency. However, the Agency has been informed of two dispLites betweeni investors and host governments related to insured projects even though no claims have been filed. These disputes are in preliminary stages and the Agency believes that these disputes will not have material adverse effects on the Agency's financial position. Note E: Other Matters Service and Suipport Fee. The International Bank for Reconstruction and Development (IBRD) charges the Agency an annual Service and Support Fee, which for the fiscal year ended June 30, 1995, amounted to $700,000 ($685,000 - 1994). StaffRetirement Plan. The IBRD has adefinedb enefit retirement plan (Plan) covering substantially all of the staff of the Agency, the IBRD and the International Finance Corporation (IFC). Under the Plan, benefits are based on years of service and average compensation, with the staff contributing a fixed percentage of pensionable remunerationi, and the Agency, the IBRD and IFC contributing the remainder of the actuarially determined cost of future Plan benefits. The total contribution is based upon the aggregate finding method. All contributions to the Plan and all other assets and income held for the purposes of the Plan are held by the IBRD separately from the other assets and income of the Agency, the IBRD and IFC and can be used only for the benefit of the participants in the Plan and their beneficiaries until all liabilities to them have been paid or provided for. The total expense allocated to the Agency for the fiscal year endedjune 30, 1995 was $907,000 ($790,000 - 1994). Other Post Emnployment Beniefits. The IBRD also provides certain life insurance and medical benefits to substantially all retired staff of the Agency, the IBRD and IFC and their spouses through contributions to a Retired Staff Benefits Plan (RSBP). Commencing in 1990, the Agency, the IBRD and IFC began accruing and funding, on an actuarially determined basis, the expected future costofproviding such benefits fotrfuture retirees. All contributions to the RSBP and all other assets and income held for purposes of the RSBP are helcl separately from the other assets and incoime of the Agency, the IBRD and IFC and can be used only for the benefit of the participants in the RSBP and their beneficiaries, until all liabilities to them have been paid or provided for. The total expense allocated to the Agency for the fiscal year encded June 30, 1995 was $208,000 ($186,000- 1994). Contribution to Special Progran. This represents grants to the Foreign Investment Advisory Service (FIAS), which was established to assist developing countries to improve their policies, programs and institutions that relate to foreign direct investment. FIAS was establisheld by IFC in 1986, and became a jointly managed program of IFC and MIGA in November 1988. Effective July 1, 1994, the Agency withdrew from the FIAS joint venture in accordance with the recommendation approved by MIGA's Board of Directors on February 25, 1994. Note F: Estimated Fair Values The estimated fair values of the Agency's cash and nonnegotiable. noninterest-bearinig demand obligations are assumecd to approximate their carrying values. The estimated fair value of the Agency's investments shown in Note B is based on market quotations due to their short term nature. The estimated fair values are onily indicative of individual financial instruments' values anid should not be considered an indication of the fair v alue of the Agency. 51 Report of Independent Accountants Price Waterhouse The Hague New York (International Firm) Beijing Tokyo Hong Kong Washington London Price Waterhouse to July 26, 1995 President and Board of Governors Multilateral Investment Guarantee Agency In our opinion, the financial statements appearing on pages 40 through 51 of this Report present fairly, in all material respects, in terms of United States dollars, the financial position of the Multilateral Investment Guarantee Agency (MIGA) at June 30, 1995 and 1994, and the results of its operations and its caslh flows for the years then ended in conformity with International Accounting Standards and with generally accepted ac- countinig principles in the United States. These financial statements are the responsibility of management of MIGA; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accor- dance with generally accepted auditing standards, including International Standards on Auditing, which require that we plan and perform the audits to obtain reasonable assur- ance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates maade by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Note D discusses MIGA's guarantee program and recent and proposed increases in the maximum aggregate amount of resultant contingent liabilities that may be assumed by MIGA. As more fully discussed in Note A under Reserve for Claims, given the lack of historical claims experience, MIGA relies on a premium-based methodology for establish- ing the reserve for claims and, in accordance with the MIGA Convention, the promissory demand note portion of the subscribed capital would be utilized to pay any claims in excess of the cash reserve (defined as reserve for claims plus retained earnings). In this context, the absence of historical and actuarial claims experienice subjects member capital to direct risk which, under an extrem e adverse claims scenario, could be considerable. 5 4) APPENDICES Governors anJ Alternates 54 Directors and Alternates and their Voting Power 57 Signatory Countries to the Convention 59 Fiscal 1996 Budget 60 53 Multilateral Investment GUarantee Agenicy Governors and Alternates Junie 30, 1995 Member Governor Alternate Albania ......................Rex hia Bal raikta ri .................. ........ Gjerg,j Kc nda Angohla...................... J osI Pedr ntde Morali . ..................... Dim i Lde Jais Chagas Sinmoe, Range I Argentina .................... Domingo Felipe Cavallo .................. Roque Benjamin Ferniandce: AzerKaijan .................... liman RLustumro\ ........................ Vagif K. Akliinedoxv Bahamas, The ................ Willi ami C. Alleien ......................... RLIthi Millur Bahrain l..................... brahim Abdul Kannim .......... .......... Rasheed N-. AI-Miaraj Bangladesh ...................NIt. Saifur Rahiman ................. . ....... K horshewd A lam Barbados .....................Owen S. ArthLur.........................George Reid Belar-us ...................... Nikolai Fiippovich Runtmi. .............-Nikolai K. Li>ai Belgium ......................Philippe tavytadr ... .................... Gregoire BroUhus' Belize .......................ManuIel EsijUiv el ... .................... Keithi A. Arnold Benin ... ...................Robert Tagnon .......................... Rigobert Ladikpo Boi%-[ vi ..................... Fernando Alva ro Co ssio ...... .............Gabriel a Candia de Mereado Botswana ]................... latmeo n L.T. NI1thibarnitee .... ............Modkie Par-ies Mo d ise Bra:il ........................ Pedro Suman ii iaw M ah ...................... GL>ravo J 1. Laboissicre Loyola BUIlgaria ..................... Diminitar Ktsrto\ .................... ....... N-i i et i M ladenov BLurkiina Faso ...................Zephiirin Diabre ......................... Djiya Haby ToLure C ameroon....................Jiustin Ndio ro ........................... Fsrher Dung Belibi Canada Pa................l..... MaI Lrtin)..... ................... HLugLIe tte Label le Cape Verde .............. .....Anrtinto Gi alberto do R1 saio ... ..........Alexandre Vie ira Fontes Chile ........................Eduardo Aninarii ......................... Jc se Pablo Arellano China....................... Lili Zhongli ............................. .in Renq,ing Congo .......................Clemeltnr Molnamba ................ ........ A nioi ne Banvicd Costai Rica ...................Fernando Hetrero Aeco .............. ....... Rodrigo B,Aiancis Zamnora Core dlvx tire ..................N''Go ran Ninumien ........................ K1na n \ic rcr Kouumne Croatia...................... Zltkc k tc N i l ....t...................... Ic sip KLtiI.siC C PLS............... ........Christodoulcis Ch isrodotilu ...............GCelirg.e V. Hadjianasrass iolu Czech RepuibliC .le..............Ian Kocarnik ........................... Jan1 Vim Denmnark .....................Pomml Nielson ...... .................... Ole Loensmiann Poulisen Domiiinica M...................Xary EuIgenIA Charles. ..................Caire A. Harri, EcuLador ..M.........Li......... N-Wici Pinito NManchenco............... . N Marcelt Proa nocde Ciriugena Eg,ypt, iA rub Rep. of.... . .......Aref Mohiamiied Ebeid ..................... Nti h in ud Ni1 burnedL Mah mc ticd El Salvador ...................Raimon Gonz-ale- G incr .................... Jocse Roberto Orellana NIilla Equartorial GuLinea ..N......... an.. i uel-Enricjrme Kinig Sttimc ............... Felipe Hinestroiis lkaka Estocnia .N..................... iart Opmnitnn ..................... ....... Enni Pant Erhicopia ......................Alemnuvtbhi DA ha ......................... Ezraic Workui Fiji ..........................Beren dic Vu,nibccbc .. ..................... R ,aigamcrcc Tuticio Finland I..................... liro Vi inainen ..................... ....... Kari Rai ner N ars France J......................Ieall-ClauLdLe Trichet ...................... Christian Nctver Gambhia, The..................Baia Garba JahLlIpa ...................... Sakci NIt. NIbuige Georgia ........... ... .....David lakcobidze ......................... Tengi- Geleishv ili Germaniiy........... ..... .... Cirl-Dieter Sprang-er ...................... Jluergen Stairk Ghiian .........a .. ... ... Ku%e>i Bochtr e y e ................. . ....... K%aesi Amissab-.A rtb ur Greece .. ...... ... ......Yannccs PapantctnIOU ..................... Gecorge Ritmecis Grenada..................... Get rye I. Brizan .......................... Ncolan K. NI t rravN GLIyana ......................Blarrat lattIc .......... ................. M-ichaiel 'Sheer Chan Honduras.................... GUti lermi RLc O B ...sc .. .................... Juian Ferrera bluingary ......... . -.L..... jcos Bcikrcis ...................... ....... GLuSzt i gvBaer Indfia ........... .............Manncth:tn Stughl .................. ....... Mocntek Singh Ahluwahalm Indoniesiai..NI............. ... Mar'ic NMUrhamnimid ............... . ....... .1. Sciedradjad Djiwandonio 54 Multilateral Investment Guarantee Agency Governors and Alternates LiLne 30, 1995 Member Governor Alternate Irelnd .......... . Rtiiri Qlil nn .Paddy.M..................... P d lllarkc [rael ......... Jaicob, A. Frenkel .................... David Brodet Itl . ....... .. Anitoiin Fa,:,- ....................i. Mario DLaghi Jamaicawn .. ...... Oiar Davie ... .. We,'elry HLighle J] ip . ...... I liwsh hit Takelln lira ... .. . M. Yai MatLshlta Jirdin ..... R nia Khalaf Huna dil N... aIlsa Swei Kaakhstan . . . .... Uiia: Dhandio% .i' . Serik A. Akha nov Kenyai ..... W. MiLnalia MLudavadi Benjamin Kirkoech Kipktilei Koie;i, RepLil ic- - - .. J au-Hvo)ng Hong ..........N. rinU-Ho Kimi KLuklit ......... Naster Ahdilulih AI-ROLidhan .....................A.. R Rasibaid Al-Bader KvItgy: RepLublic.Kemelb ............. ... Kellek Nanmer . ............. .. AAknr . S;,rvgytiloc Lelblaln ......... Hagob Der erdan .... Y. iOUisef C h1 'tLCIir Les . ro.NIP... M.. Senaan A ..... ...... E.M. Matekane Lilv .......a.......... Mohaiied .A. Bait El Mal ................................Bahitr Ali Kha llar Lith nian ..............a. .. Reijoldj I Usa Strkm .i............................ AleksaIndars Via ilaLiska LLIxemboutIrg ..... .......... Marc Fischbach ........................... .. Y ve Mersch Macedonlia. toriier .JaeNi.................-. -Ile Mlj vaski ............................. Harl Kosto YtLgiilax RepLtilic if NMadag;scar . ............... Tivonanhlillry Rabetsit onta ............................ Brtino Betiaria MNaliwi .... ........... Aleke K. Banda ............................. Charles D. Nthenda Nial.ysia .... ........... An war- Ibrahim ........................ .... Clit(ord Francis Herbert Ma .i .............. . Soai m 1 i Cisse ............................. Ahoiilsacar Alh hosseynvi To lre Malta .............. . John Da li. . ............................. Albtrt A. Attard Nlnatiritan ............... Lemrabort Cheikh Ahmad .............................. Sldi NMohhalmfetd OuId Bakh1a NlAtirin rs . ............. . RLindheer ing Bheienk .............................J agqnaden P. Co ipainah Micrn cal a, Federared l ............... Alo\'Sfflb ! Ttilih ............................. A teriii R. Takesy Srtates of MNotdiiva ............... ValeriLi Sergiu Kitan ...A.......d..................... Andret Keptine M on icc .. ............ . Nilohimned K.ihbi j. ............................. Abdelfetrtah Bennunaisnur Nl: ialbLj ULe .............. . Tonima: ALgIartO Salnl .............................'mi. Adriano Afisnso N alleiane N ammi ha .... ........... Hanno RLIp ..........Li.a.. .................. Paul Walter Hartimann Nepal ... ........... . Bl3iranIt Mihan Adluikari ............................. R.B. Bhattarai Netherland ............... Gerrit Zalm ......................... .... .P. Pronk Ni caria;L^U .. Emilio' Pereirta Altgria ......... Jose Evenior Taboada Arana Nigeria ........... Anithony A. Ant ..................... Gidado Hdria Norwa y ........... Si'lsji em johinaen ................... .. Kari Nordheim-l arsen Om111a ........... Qaa .AlsiId-M HUTin Al-Zawiw ...................... itohaniined Blii Mu nl Al Y OUiet Pakistan .. .......... Qazi NI. Ali inilila ....... ............... Jved Masad Pap.La,. NeW Uil . ..e . ........ .. Christopher Ha.letn ....... . .............. Gerca Aopi rnigiav ....O........... Orlando Bareiro AguLiera ........................... Herm>e Goniie GCinard PerLi.bn ........... rge CGinet Dickiminn ..i....... ............ Alfiedo Jaililie Awapara Philippine ........... R oberto F. de Ocamnpo ............ ......... Ri:alinui S. Navarro PoLand .R............ R d.zrd Michalski ....... .............. Andr:ej Chmiel P Lrtlga . ........... Ediirdi lie Aline ida Ca trLsza ..................... Walter Minrqies Romania ... ........ Floiirin GT)escI. .....V.lad.ii................ Vlhmir Snoare RLisSimn Fedenir itin .............. Anat )il Chihai. ............ ............ 't.evgeni Yasin Sr. LLcC . ........... JohnC G.M. Coipt on .. .................. . Zenith James St. Xiii eint and . . ........... James F. Hiitchell ....... ............... IIliUrice Edwards the (Grenidines Si L i. Aralbi.. ........ . oa. a1d1 *h.111 d Abah ml .i . . ...................... Joltirah AI-SUtrasrt 55 Multilateral Investment Guarantee Agency Governors and Alternates Julnle AC, 1995 Member Governor Alternate ..... . . . Pipii it ; lie... S..k. .. Ak %, Tbio 4. Inc Seyehelles F Berrit nd R;i . I. ... Vili C:ilixre Sl A Repllic .i. Srgei K:k I .. . . . limd I Ir NI, TTr >inxec.i. . Nlitjl. G ir;l.i ... En - nv- ic S orii Attici .. tikrot Fero l-ie nlIxT i. .... i brih titin L Id x\ik Žtils SSpain .. . . . . ici n - Nl \;i r . Al p1i in Rii- Li oei Si-i Lankj . I. ;m.driL k BF n, Jitxnl aikI K,hdir irtariing:i . A S. Ix ;IT 1 Ien I Si i .. A ] . 1 A. li Hi; xn;m Abied . . 1 .. N0lh i hd Khliir El ZLiIb;iil S i ..l iIn. lNI\. men N. k\;ipb ii . . .. ... Erhaim Ni,iind1;i HlpIxe Sw .ed.en. (. . rn etll eT . ... I irre Se i Sir i rrl;e I II. Nice Iioden . .. .. .. F.;Prncii R bhni Tn mzali. .. H lic Ko i-i;i ... Peter . Nh nErlllt T.11 . Y.Iiilt j I ent b . 1 . . . . ... KWiD KliitC Trinida d l.....1 T... .. \X;Wendel l ltrl . . .. . Rc) ni Id K. R;inpenn1d TLI i.i . .. .. NIIl.1:l d (II:ll 1lTlcI ... T Utlik Baec;ir TuIrk c . ..... Avrr iIni . . .. .. ... il - Turk menim .i . Htil;iJ i ei-de A. Or;: Anixi.iJrv Kb:dp\ I ljnnx]l Je.. .. ll c bS N ;i:iixii-Nk:imai ... Emimiienlei T. NIiiebile Ukri .lie.. . ilh Ih lvrii Lk Ier\ ..levlie Vc- ele I Un Iited A tal Em I h....e.. . ... b med K1 hAtli1 I)I ill Khiik hri .I ..... . Ni 11umm11 A. K. i mber United Kingdii i.. Ketill(dil hrke ...rIll. . (Ihiker fW;l1iix. United Stalre- P.b R it E. Rtuibn ... Jn Fm SE cr. UriLlal. .. LuliI INlC.I ....... A Piel rietIx UJckitim . . . . NIAIinHiidj0n A. Akirx .... S.H Al 1ILIU1irkic ValIlli;itl ............... \. Wilh, Iiiieim iN ...... ................ S.aLInp'un-nN N'-%ei Vn:l.iia . . Albert P Lxleo oll,P I..l.i t . ......... (l Iclilt) \irt Nlil . ... T1 S iIll Ki. . . . .... eV1 t 1-il \Vestern Sli-:i ...... .............. .. TlHi:ie.I S. \M:eid clu mi ................................ .. Elp Tuinll Z;irL . F:.. . . iv- w.WS lie rre KA -I e I in m -N X.l;I- I11 Z1,,Im i; . Rnr.,tld [ );,Is i ,>111, P,i,1-, ...........i........ (\:IJC; IT) Zinl ;llmv¼e ANI. . . A .M. ( binibiti ... .. CIrL- Tixi lereri Kih i,i:i 56 Multilateral Investment Guarantee Agency Directors and Alternates and their Voting Power l Ile )0, 1995 Total % of Director Alternate Casting Votes of Votes Total ELECTED BY THE VOTES OF FIVE LARGEST SHAREHOLDERS: i1nE Pie,ij M1I11ihCI NIATk Unitcd SJ rIrt 20,&'6 I7o? Ati.w iIrileiri NI:i',ILrLi FIiiiJ, piLL 5i272 4 50 FHit: FLichci I eliLt) k kikri,niii 5.24> 4 48 NULLm--AnfrL AL[IthLILL,LL Ai mit]id ( Ihcmt , It - Fi icC '-, 4 I30 HILV Ev m, I )L,I ii >L,iiutmiii tI Itul LIKiLe!dlin 3.O 3 37 4 10 ELECTED BY THE VOTES OF OTHER SHAREHOLDERS: Ecline Hn, eritkin rtnzL KLiljk NdiL.iLI IL 6 tp an (.spti-. (Ac tri.i, I.r,il. (,04i i- (Nerh'ei ;iiLJd) (1-kr1, l ['Nl,i) cc. lii,i (II it, - IkII'(]it'l, II Re plII I C .11, Ildo,i a, NCiherl.imidr , Roii m,LI.i, l-kr,iiict PhiliLpfl. Percii Kjit,.lihn PlnitiLr Bjlii, Bleiiiti,- (: -ie ReC hlvlh Hiiitn.it i,1L70 u 1 I hcl iti LII) IHLiiL K.i:.ikls,, Liixeliir.,l o Sl ,ik RKc1iihli. SIcni.Li, Tiirkee L miiLLrJ (God WLimtr, -I (A The B.lL.L.t, hP,irlb;AiJ, Bclit, ( LiLmLli, 5,L)(-4 5 0' l( iiu,icla) (I Final ils) 1 (inidi, (jt;rtil.ls.ltiLttLiLn-. lrel.ii lMr . 1,itu ic.i, Si LLLciCI. 't. N rl,en)t MInd i Lh (Ci l[endine H.Lir NI M N Iip lnd Fiiii R ( Lilt AnL,Ili, IIn in i, Etiiopi,i,I T Ui . Limhi,i, 5,3 > 4.77 IN1i1l1i I) (N1 ':11Ii IC)i Kn,iie Lestl-id, NI,iIiei,. NLLainim, NiLULriL.. Sen.hellus. Suid.iit. Sc,mI:l,ind, T,LL:.LLL., L ig 111.1. zalilihil., [l."N EIn (.irrilL HCkLim CirdCiro Alhlmii.mi, GreeLe, lt.I., Nitli, P,rTLI1.tI 4,500 3 8'4 (It,le ) IPrLiiet,i.l) E E. kliiL.iel H,ik-kiik IF Fiji Indoncm. Ii i,ke.i (Rep\ 1ilic .41) M:il iei.i. 4,43 i 3 , j1l1on-.LLL) (Republicit 'If KI:[COI NliciinesLi, (Feder.iic SratiL e' NiL ,fl, PilL NexL (iMiiiiL.i \ViiLLItiiti, VIci NMLL, V/etcI IL S,iiiii .1 RLuItlhJ IcII FIel, i Id 1" n"I'il I )C ir].ITk, E-t-n,i. Finl.ind, LiLILLi,iL:, 4,2")' 67I (Se-ledn) ( Lehild) N trL. L S%k LJCd]i [Pedii NI Nl-J Edimod -iicdedtlr 1. *,iL Ri.c. El SLll]d I, HoldUtirL, NIC.itLii 4, 21 I* tO lSpiu) ~~~~~~~~~VCIIeC:u.i SIpain,I Veiieziilai RBit;l J.ll NItis-iaeticlir RiltL:L; Rultitll. llt,.IIl, Sr I Link.1 4, 1(0 C IO (I [nilK I[ fI id.i cl II) FaljI A. Ai-klIiled .1 Nih miCd W H-nlLv hihimi,i EL:%pi (ArdI RepllltL 'l, 4,1 i0 54 kLImI.110 (A bl' RepLuliIc 4f Etplqr JrdL.LL, Reim , LIt.i. 0mLLi:L, TILsiLt,m Un itetd Ari Fn ELirLtc- Jc. it-IMiUeI Jerber ic tlr .AeiIul,,\rin. Rr: Repub lic, Pnl,mI. 37Wi 3 'I (Sit:ernliitd) SLLit:erlaixd. FT1,MlikiiL,i, I_ :1I'ekitln1 5it . I) S7 Multilateral Investment Guarantee Agency Directors and Alternates and their Voting Power Juine 30, 1995 Total % of Director Alternate Casting Votes of Votes Total Ali BOrlirhmie -LIc-Abd i ALleni Beninl, BLIrki ima Fastt, Camerittin, Cape Verde, 3 712 17 (Cwita1tLis) (D;ilNulti) I uiMi0, CiteW dl'lr-, Madagascar, Mali, MliLlritianiii, MNIUrints. Senegal, Togo, Zaire JLilitt N.glies Carl.osSteieeri Argeni ii, Ntli ci. Chile, Piraigzuay. Perl, 3,581 3.06 (Argcntininn) (UruineiIV) C riliLiay Zhlni.g Shenyman Zhli CGUiingy:Iii Clima 3.319 2 .3 (China) (Clill;l) Ihrahiii A. Al-As'at Ihraihimi N. Al-Moileh Saiudi Arabia 3,314 2.83 (Sauldi Arabia) (SaLidi Arabia) A ndrei BLaIr. v IELtIene Miakiko RLUssiaM Fedlel;ritinl 3,314 2.S3 (RUss!ian FcderaiLtin) (RI usiaum Federaition) Marcos CiraliLi[Ll JC PaiVl a I unnital . Aniati,i Bra0il, Ec5ii,d r Philippies, Trinidad 3.06 .61 (Brad)lil) (Philippines) and T1tb,igo AbduilI Krimi L'Lldli AIi Trichi (hiGI,i, Mtirtccot hIakistain 1.784 1 .52 (tikistian) (Moltcci ) In addition to the Directors and Alternates shown in the foregoing list, the following also served after October 31, 1994: Director End of period of service Alternate End of period of service YlIsUyLiki Kimahara MNIv 31, 1995 iil S. Beltrin May 31, 1995 (Japanlll) (Philippincs) A lexnider N. Di unii nmi Ntiemiiher 1, 994 (Rusi,n Federaltion) llenna Itises.ii Mir 31, 1995 (Rommituni) HIirilId ReliiiN MNl 31, 1Y95 (Germany) MNI. Cecili,i G. Sotri,int December 15, 1994 (Philippirnes) N-l.A. Sy.ved Novemumber 30Q 19194 ( Banclidhsh ) Bonig-Hec \Wt in N-IL irch 31, 1995 (Republic it Koira) Note: EqmLrmari;il CGiiiFe.l (227 cites), Lehbnmon (319 votic) and Mozii,nhiquem (274 cotes) becaime mnemmibers aitter the 1994 Regular Election oif Directors. SOtLIth Africa ( I 120 ivtes) didL ntt part icipalte in the 1994 Reemi LILn Electimn t)f Direcittrs. 1. Erikai Wag.enhftr (Germay); ;appoitnted effective J lr I , 199i. I Ti he suicceededl by Le nanrd Niseka (MNli!i effective JLiI\ II, 1995. c Tt be suIcceeded byv 3ortgen Vairder (Derimark) eftfecti e ALieList I, 1995. I Ti, Ile suIcceeded by KhNiled Al-Sand (Kiiw,iii ) effective AuLILlct I, 1995. 58 Multilateral Investment Guar-atntee Agency Signatory Countries to the Convention Al-iiniLi (Greece* Panama Alecrii Greiada` PaIpuL New Guinea. Aivoh* Guatemala Paragu Ly> Argentmi*i GuLi I Peru* Armeiia"" G iinea-BissaIL Philippines* A-cerba11111l1 i LI x';an IJ Poland" Baldiimas, TheE Haiti PortuLalI BAb rain>:1 Hon)dU[ra.>: Romania* Baniglaldes h l Hulingary * Russian Federation Ba rhIld os* InIa1* Rwa nda ** Be la ruI. I ndone> ia a St. Kitst and Nevis BelI I11: Ireland* St. Luciat Belize1 I.rael* St. Vincent and the Grenadine>t Benin: I tly* Saudi Arabiat B Ii> ivtat Jamalca)* Senegal: B1 sln ia-He rzeg n-inl a J,IpaI* Seychelles> Botsinv;la* jordmn* Sierra Leone Brazil` Ka:akhsran i Slovak Republic" Bulir-ii* Kenva> Sloveril* lurkmna Fas Ko Korea, Republic otf South Afica* Buiirundi KUWait" Spain* CambIodi L Kvrg - Rep.ublic :' Sri Lanka": CauICroo n" Leit-i ::* Sudan: (Caldidi> Lebaiion* StLirina CaIpe Verde* Lesotho* Swaziland* Chile> Libya" Swedei L hihm Lithuania - Switzerl.sid (:kulormlbia LuxenI1hotirg* Syrian Arab RepuLblic Con"o Maicedoniia, formier Y>g1islaxV Tj ikistan C( -tra Rica RepLiulitc Of* Tan-ania Cotc d1 I Oilre Maidacagascar: Togo: Croiiti;v: Malawi: Trinidad and Tobagoi & sprus>: Malays ia: Tunisiat Cel-ch KRqub lic:- Mali>l Turkev* I)emini;urk* Maltna> TUrknieniktalin Doininiczia Mauritania! Uigaldxn: Doimin;ica RepUblic MAuritilus> ul*kraic EcuaLdor>N Micrnnesia, Federated Staes oftl United Aral, Emirates* Egypt, Arbl RepubliC O!> MoldIONa* Uniited Kingdomni> El SalvIdiIr> Monoolia: United Stites EuILLMri il Gu-Iineav` Morocco> UrLgIua* Eqt In ia Mo-aniklique tl Uzbekistan Etliopria": Namibiiah* VanuLIatL:- Fiji Nepal Venezuela* Finland> Netherlands* Viet NMain France NicaraL!gua: Western Sanmoa': Gil-hon Niger Yemen, Republic Of: * Gambui, The Nigeria" Yugroslavia Federal Republic of Georgia Norwa"v (Serbia/Monteneorot** (Ger al-l\ 0 Illll Zaire* Gh'ia n P: k I stan* Zalmba>: Zimbabwe* NIL'1l''-t'IlllU'I1lT11lt' IIIIT ICI r I It II r l iI I.It ItIL I A I IIIi s -c Ir o i ip11i 1IC I IILih-rllip reIiiIILiIcIIIt I 59 Multilateral Investment Guarantee Agenci Fiscal 1996 Budget Exprcs.tl in thu sa nd,iik 4 US It,L1; Income from: Iv est llmle t ................................................................................... i I 's remiu,,.. 20.00.'O T,*il incotu ie ........................................................................................... . . . . . . . Expenditure by organizational unit: Execuitive \ice President ..... 1,3XI ( llilrilnllte e s ................................................................................. 4 357 4 lnlve'rille llt tM ill' ket ill" Sk % ice> ..................................... ..................................................... ................ I. 1 31 Le-oll iIndJ (f l), . 1.64........................................................ ........................ 1,664 Finance ind Adii iinistrmtin . . .............................................................................................. 11,50 Totail eMI 1nditmt rcr 1.7............................................................................................ I0, 00 N et incom e . ... ...................................... .. ... ....... . $ 1 i 5 1 Expenditure by category: DiScretiollnly costs: Stilft IA)sts .................................................. . 3 1740 Opetitiolail tra'el ..................... 7.. . ......................................................... 70 Ot) R ep resen t i n .................................................................................i. . 4 S Con1sUIltant fees 727............................................................................... 7 2, C( MltrilCtUli ser\ ict s ...................................................................................................................2 17 IFCL.erl ices .................................................................................. 1SO M alrketing nd PLI Clt li tri.t.ins ......................................... 137 Direct COm u nical titllS .1................................................................................................................3' Illte.ll .) p ..t . ..... . .... . ..... ..... ..... . .... . ... . . ....... ... . ... .............n. 3 FLil llitLirc an)d eqLuilpej i t ...................t .............................................................. 2 2 3 M iscelli laneO s *US .................................................................................................................. 7 3 SlI-tot;il . . . . ............................................................................................ ('i Othier direct costS: S t ld t b e ln e tits ...................................................................................................4............... 0 4 office ccuillnc\ ............... ................................................................... L)h- IBRL) scrvcice anII sUpport fee ....7....................7.................................... 71t 0\elrhe dl .............121..............................................................................1 I Sul-totl 4.. .................................................................................... .... 4 5 Total budget .......... . ... ,,. ...,., .. . . ... , . 7 1 0,)00 Note: The Fisc;l 1'99)6 BLudIget Was; apprioved b the Direictors in ziccord,mnce with tile MiGA hbliws 60 Pr-intied on recvcled pa1per C,,ier oind hook designr h\' Mk4 EZdl ISSN I:1l4-,' 2 3X 61 'P.' k ~ ~ ~ ~ ~ ~ ~ ~ ~ '4'i A:7 ~/ 4 -t~~~~~~~~~~~~~~~~~~~~~~~~~ '44-1 O~~~, - 4. ~ ~ ~ ~ ~ < I -AAC C'~~~~~~~~~~1 A/ YA.At 'r~~~ 4 444/ r'~~~~~~~~ (~4; - b ; 4Sg ;xi 4v~~~~~~~~~rt ~~~~~~~~~~~~~~~$4 ~~~ ~ 1 A7