BRIEF February 9, 2018

World Bank Guarantees in Action

Learn more about how World Bank guarantees mobilize commercial financing for investment projects, help restructure expensive debt of utilities, and increase developing countries’ access to capital markets.

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Argentina Renewable Fund Guarantee FODER

In early 2016, the Government of Argentina launched the RenovAr initiative, an auction-based renewable energy program designed to scale-up private renewable generation capacity. A $480 million guarantee from IBRD helped Argentina unlock its renewable energy potential by creating a market and mobilizing about $3.2 billion of mostly private investments. Download

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Ukraine Gas Supply Security Facility

A first-of-kind IBRD trade finance guarantee helps Naftogaz, Ukraine’s national oil and gas company, import gas to support Ukraine’s energy security. The facility has a revolving structure and incorporated innovative features for IBRD and participating commercial banks. Download

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Cameroon Kribi Gas Power Project

This was the first infrastructure project in Cameroon to raise long-term, local currency commercial financing on a project finance basis. This came from innovative structuring and a first-time variant of IDA loan guarantees to cover local lenders - paving the way for deploying local capital for infrastructure projects in the sub-region. Download

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Nigeria Azura-Edo IPP Project

Azura was the first true project-financed independent power plant in Nigeria and its financial structure is expected to serve as a template for further investment in the sector. The 459MW project is funded by 20 equity providers and international banks and will provide electricity for 14 million people. Download

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Kenya Power & Lighting Company Refinancing

In June 2016, KPLC restructured $500 million of its existing commercial debt into new, longer-term commercial loans, which was enabled by a partial IDA loan guarantee to the commercial lenders. KPLC thus marks the first electric power transmission and distribution utility in the Sub-Saharan Africa region to successfully undergo financial restructuring. Download

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Ghana Policy-based Guarantee

The World Bank helped Ghana meet its debt management objectives and raise $1 billion with a 15-year tenor and the first bond issuance supported by a Policy-Based Guarantee in the market in 14 years. Download

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Ghana Sankofa Gas Project

The World Bank Group developed a  $1.35 billion financing supportpackage to help mobilize $7.7 billion in commercial financing for the project, which has the potential to change Ghana’s energy mix for power generation from expensive imported fuels to domestic natural gas. Download

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Sierra Leone WAPGP Power Project

The World Bank Group is providing an IDA guarantee, an IFC investment loan, and a MIGA guarantee that together will leverage $138 million in investments for the power sector in Sierra Leone. It is a key component of the government's recovery plan to rejuvenate economic growth post-Ebola. Download

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Zambia West Lunga Scaling Solar Project

The Scaling Solar program is designed for rapid implementation and offers a “one-stop-shop” package of advisory services, contracts, financing, guarantees, and political risk insurance from the World Bank Group. This project attracted top-tier global developers to the country’s first competitive auction and resulted in the lowest tar­iff to date in Sub-Saharan Africa. Download