Environmental Considerations In Political Risk Insurance - MIGA Perspective

The Multilateral Investment Guarantee Agency(MIGA) is part of the World Bank Group, and has as its mission the facilitation of foreign direct investment by providing political risk insurance (guarantees) to foreign investors and lenders. As a development institution, MIGA is required to ensure that the projects that it insures will bring development benefits to the host country. Demonstration of this includes review and analysis of the environmental and social soundness of a prospective investment. Environmental guidelines and policies developed by the World Bank Group are important components both in analyzing the environmental and social soundness of a prospective investment and in risk management. MIGA has recently formalized and adopted environmental assessment and disclosure policies. The approach taken by MIGA to environmental review of investments and implementation of these policies is described in this paper.