Contingent support mechanisms are also available from development finance institutions (DFIs) and donors, for example the contingent support mechanisms available from the World Bank33 and MIGA.34
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| Box 5.9: Guarantco |
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| GuarantCo is an independent, regionally focused provider of partial credit guarantees. It is a private company owned by the members of PIDG,a run and managed on a commercial basis. It provides a variety of contingent products including partial credit and partial risk guarantees. a The Private Infrastructure Development Group ("PIDG") which is a multi-donor, member-managed organisation. Current PIDG members include: the UK Department for International Development ("DFID"), the Swiss State Secretariat for Economic Affairs ("SECO"), the Netherlands Ministry of Foreign Affairs ("DGIS"), the Swedish International Development Cooperation Agency ("Sida"), the World Bank and the Austrian Development Agency ("ADA"). |
Some private sector providers of capital view bilateral or multi-lateral involvement as improving the likelihood of priority being given to their interests in the event of restructuring by the host Government. This is known in the market as the DFI "umbrella" or "halo", and is the basis for the popularity of various products, in particular the IFC's A and B loan program.
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33 For further discussion, see www.worldbank.org/guarantees and Delmon, Private Sector Investment in Infrastructure: Project finance, PPP projects and Risk (2009).
34 www.miga.org