MIGA (Multilateral Investment Guarantee Agency)

The Multilateral Investment Guarantee Agency (MIGA) is the political risk insurance arm of the World Bank Group. It provides guarantees against losses caused by political risks such as currency transfer restrictions, expropriation, war and civil disturbance, and breach of contract by host governments. MIGA's clients are private investors and lenders who need protection before committing capital to projects in developing and emerging markets.

What is MIGA?

MIGA was established in 1988 to complement the work of ibrd, ida, and ifc by reducing the political risk barrier to private investment in developing countries. When a private investor wants to build a power plant or a manufacturing facility in a politically uncertain market, MIGA's guarantee can make the difference between the project proceeding and stalling. MIGA covers investments in over 100 developing countries and has issued over $75 billion in guarantees since inception.

Unlike the other World Bank Group members, MIGA does not finance projects directly or procure goods, works, or services at scale. Its role is insurance and risk mitigation. Projects that MIGA supports are commercially owned and commercially procured, meaning the World Bank Procurement Regulations do not apply to how those projects buy goods and services. MIGA does, however, apply environmental and social standards to projects it guarantees, and it has its own grievance mechanism for affected communities.

Why MIGA matters for bidders

MIGA's direct relevance to procurement is limited because MIGA-guaranteed projects follow private-sector procurement rules, not World Bank rules. However, suppliers who understand the World Bank Group's full structure are better positioned in conversations with project developers and lenders. When a large infrastructure project in a frontier market cites MIGA support, it signals that the project has passed World Bank Group due diligence, which is a positive indicator of political risk management and the likelihood the project will proceed. Suppliers pursuing these projects should engage with the private sponsor's own procurement process rather than looking for notices on the World Bank portal.

FAQ

Does MIGA issue procurement notices?

MIGA does not publish procurement notices for project goods or works. MIGA's own corporate procurement for its operational needs is small and handled through World Bank Group corporate systems.

What types of investors use MIGA?

MIGA serves multinational corporations, local businesses, banks, and institutional investors who are making cross-border investments in developing countries and need protection against political risks that commercial insurance does not cover.

Is MIGA part of the same debarment system as the World Bank?

Yes. MIGA is part of the World Bank Group, and individuals and companies debarred by the World Bank Sanctions Board are also ineligible for MIGA-guaranteed projects. The cross-debarment agreement among MDBs also applies.