The Multilateral Investment Guarantee Agency (MIGA) of the World Bank has issued $83.5 million in guarantee coverage for a telecommunications project in Brazil. Some $53 million of the coverage has been reinsured by the Israel Foreign Trade Risks Insurance Corporation (IFTRIC), marking the first collaboration between the two organizations. This is MIGA's second guarantee for the project.
The new guarantee covers the Israeli company ECI Telecom for up to eight years-against the risks of transfer restriction, expropriation, and war and civil disturbance-for its loan investment to Global Village Telecom of Brazil. ECI Telecom is a global provider of voice, data, video and multimedia telecommunication services, maintaining a sales and customer support network in over 145 countries.
The project involves the construction and operation of a wireless telephone network in the center and south of Brazil, which provides state-of-the-art telecommunication services to residents and businesses. The project should also increase competition in the telecom sector, generate significant tax revenues and employment, and spur local business.
MIGA was formed in 1988 to encourage foreign direct investment into developing countries by providing noncommercial risk insurance against such risks as transfer restriction, expropriation, breach of contract, and war and civil disturbance. MIGA also offers investment marketing services to help developing member countries promote their own private investment opportunities more effectively.
Since its inception, MIGA has issued more than 570 guarantees for projects in 81 developing countries. Total coverage issued exceeds $9.6 billion, bringing the estimated amount of foreign direct investment facilitated to more than $42 billion.
The Israel Foreign Trade Risks Insurance Corporation (IFTRIC) was established in 1957 and is fully owned by the State of Israel. IFTRIC offers Israeli companies a range of services to assist them in promoting their business abroad and in neutralizing some of the risks associated with export and investment activities, through commercial and noncommercial risk insurance. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
