Designing SGs

-  Ensure that the Government team setting up SG programmes or individual SGs has the right skills;

-  Involve relevant Government stakeholders at an early stage and ensure they are aware of their roles and responsibilities;

-  Ensure that the provider of the SG is a Government entity acceptable to lenders and investors;

-  Identify the beneficiaries of the SG and structure the SG to address those beneficiaries only;

-  Ensure that the SG is designed to cover only the targeted risks;

-  Limit the SG protection to the project phases that require it;

-  Ensure that the SG preserves the investors' incentives to manage the risks they can best manage;

-  Limit moral hazard by leaving sufficient risks with the lenders (what is sufficient will need to be assessed on a case by case basis);

-  Ensure that the Government's conflicts of interest are properly managed and acceptable to lenders and investors;

-  Ensure that the claims paid out under the SG are reimbursable (this will often create better incentives);

-  Share the project upside if any;

-  For SG programmes, ensure that there is a proper exit plan.