 Â Overview
 Guarantees
 Technical Assistance
 On-going Assistantce
 Overview
Created in 1988, the Multilateral Investment Guarantee Agency (MIGA) encourages foreign direct investment (FDI) in developing countries by providing political risk insurance (guarantees) to foreign private investors against the risks of expropriation, transfer restriction, breach of contract, and war and civil disturbance. As part of its guarantees program, MIGA helps investors and governments resolve disputes that may adversely impact investments guaranteed by MIGA, thus preventing potential claim situations from escalating and keeping investments going. MIGA also helps countries formulate and implement strategies for attracting and retaining FDI, as well as offering a suite of online services offering free information on investment opportunities, business operating conditions, and political risk insurance.  Operational overview  MIGA’s strategic focus is on providing guarantees in sectors that are government priorities, such as infrastructure. The agency is eager to facilitate more investments in support of China’s western and northeast regional development strategy, and is working closely with Chinese partners on outward investment. Since 2000, there has been rising interest in MIGA guarantees, particularly for projects that involve sub-sovereign risk, such as those in the water, wastewater and solid waste management sectors.  Back to top  Guarantees  Exposure. MIGA has been very active in supporting FDI into China. MIGA’s current portfolio in China consists of ten  projects totaling US$241.58 million in guarantee coverage. The vast majority of projects supported is in the infrastructure sector (96 percent), with the remaining 4 percent in services and manufacturing.  Â
Cooperation with Ministry of Finance (MOF) and Ministry of Commerce (MOFCOM): Focus on Outward Investment. MIGA has been working with the MOF and MOFOM, with a particular focus on facilitating Chinese investment overseas, specifically in Africa and other parts of Asia. In 2005, MIGA organized a workshop jointly with the MOF, China EXIM Bank, and the IFC to introduce the risk mitigation tools provided by the World Bank Group and by MIGA in particular. In 2006, MIGA and the Foreign Investment Advisory Service (FIAS) of the World Bank Group held a conference jointly with MOFCOM in Beijing to present the findings of a survey of 150 Chinese companies with overseas investments and identify the opportunities and constraints. In the same year, MIGA also co-sponsored the Dialogue Conference between Chinese Enterprises and Fortune Global 500 Companies with MOFCOM’s China Investment Promotion Agency (CIPA) in Wenzhou. Â
Cooperation with Sinosure, China EXIM Bank and other partners.  In June 2005, MIGA signed a Memorandum of Understanding with Sinosure on cooperation in marketing and co-insurance of Chinese outward investment. Since then, MIGA has provided investment insurance training for Sinosure. The two jointly conducted a series of political risk insurance road shows in China’s coastal cities. MIGA has also strengthened its cooperation with China EXIM Bank through joint project, regular dialogue and identification of potential projects for future cooperation. In addition, MIGA is strengthening cooperation with several other partners at the central and municipal level in support of the country’s outward investment.   Back to top  Technical Assistance  Promoting Region-Specific Investment. MIGA has undertaken joint initiatives with other members of the World Bank Group including ICAS (previously FIAS), the IFC’s Private Enterprises Partnership in China (PEP China), and the World Bank’s country team. To further cement WBG investment climate advisory service, MIGA has merged its technical assistance activities with those of ICAS in early 2007. MIGA provides funding to ICAS to in support of technical assistance for investment promotion. Â
Previous TA assistance provided by MIGA in China: ·         In 2005, MIGA and PEP-China jointly conducted a competitive benchmarking survey in Sichuan Province. The findings of the survey, which covered firms in a diversified range of sectors, proved useful in helping the provincial government develop an integrated investment promotion strategy and improve investment climate.  ·         Between 2003 and 2005, MIGA organized a series of investment promotion skills workshops for the Sichuan Investment Promotion Bureau and other provincial and municipal entities with a role in investment promotion. ·         In 2005, MIGA conducted an assessment of provincial investment promotion capabilities for three investment promotion agencies in Heilongjiang province. ·         Building on the MIGA/PEP-China benchmarking study, PEP-China conducted a survey of industrial clusters in Sichuan for the local government. MIGA provided advice on the conduct of the study and on the policy and operational implications of the findings.
Ongoing Assistance  National Level Assistance. MIGA-ICAS and MOFCOM are working together on a multi-year national technical assistance program to help China’s poorer central and western provinces attract FDI. A memorandum of understanding was signed in 2007 and, since then, MIGA-ICAS have supported MOFCOM in the implementation of a pilot program for the preparation of an Investment Promotion Strategic Framework for six provinces in central China. MIGA-ICAS introduced international best practice in the pilot, and advised on the objectives and content of the Central Region Investment Promotion Strategic Framework which was completed in late 2008 and approved for dissemination by MOFCOM Ministers in June 2009. The Central Region FDI strategy will be launched at the forthcoming Central Expo in October 2009. The project will be rolled out next to the provinces in the Western Region.  As part of this overall initiative MIGA-ICAS is also providing assistance through MOFCOM for two implementation pilots established in support of the strategy development work. MIGA-ICAS is supporting investment generation activities of the government of Yinchuan (Ningxia province) as a pilot for wider roll-out and is also assisting with capacity development for two Industrial (Investment) Transfer Centers (Shanghai and Kunshan) established by MOFCOM to support investment promotion for the Central and Western provinces.  Sichuan Earthquake Support: Following the devastating earthquake in Sichuan and Gansu provinces in May 2008 and as part of a $1 million emergency recovery program funded by the IFC, MIGA-ICAS provided assistance to officials in Sichuan and Gansu provinces to assess the implications of the earthquake in terms of retaining existing and generating new investment and to undertake long term planning for private sector engagement in recovery, reconstruction and longer term economic development.  MIGA-ICAS ran two workshops in Chengdu and prepared a substantial analysis of the economic situation of the three worst-affected counties before and after the earthquake identifying possible areas for private sector development and investment attraction.  Global Investment Promotion Benchmarking 2009 – China: In May 2009 MIGA-ICAS published the latest results of its GIPB study of investment promotion effectiveness. As part of the study and as complement to the wider MOFCOM project, the study assessed the capacity of all 32 Chinese provincial IPIs, as well as the national body CIPA, thus providing MOFCOM with a broad strategic picture of investment generation capabilities across China. This analysis will provide unique performance data that can be used by MOFCOM to design more effective implementation initiatives. Â
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