IFC and Infrastructure

IFC supports innovative, high-impact, private infrastructure projects that can be widely replicated. It helps increase access to power, transport, and water by financing infrastructure projects and advising client governments on public-private partnerships. IFC mitigates risk and leverages specialized financial structuring and other capabilities. IFC also helps increase access to power, transport, and water by financing infrastructure projects and advising client governments on public-private partnerships. The Corporation mitigates risk and leverages specialized financial structuring and other capabilities. In fiscal 2014, IFC's new commitments in this sector totaled about $2.4 billion, or about 14 percent of commitments for IFC's own account.

MIGA and Infrastructure

MIGAs political risk insurance can play a pivotal role in helping companies attract funds for large, capital-intensive investments. In fiscal 2014, MIGA issued $1.4 billion in guarantees to support infrastructure projects, accounting for 45 percent of MIGAs new issuance.

MIGA has a comparative advantage in supporting complex infrastructure investments, particularly for cash-intensive investments that involve municipal governments, and in securing financing at better rates and for longer periods. Infrastructure development is an important priority for MIGA, given the estimated infrastructure gap of $1 trillion in low- and middle-income countries and the growing demand for infrastructure to deal with the rapidly growing urban centers and underserved rural populations in developing countries.

MIGAs strategy builds on its market strengths: encouraging investments in the more difficult, frontier markets, as well as supporting investments at the subsovereign level, which often involves inexperienced and therefore riskier partners.

 
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