Termoguayas Generation S.A. (Ecuador) PER (back)
This 15-year concession project involved the installation, operation and maintenance of 150 MW barge-mounted power generator sets to supply Ecuador’s national electricity grid. The project would help address Ecuador’s electricity supply shortages and vulnerabilities, help reduce electricity rates, and is consistent with MIGA’s operational priority of supporting investments in complex infrastructure. MIGA covered a shareholder loan and equipment leases against Transfer Restriction, Expropriation and Breach of Contract risks, with a gross exposure of US$102.6 million or US$51.3 million, net of reinsurance. IEG selected the PER for its comprehensive assessment, in-depth and candid analysis of project business performance and economic contribution. IEG also commends the PER team for their frank assessment of MIGA’s due diligence, MIGA’s role and contribution and the implications of the shortcomings’ on MIGA’s operations. The lessons identified were particularly useful in improving MIGA’s future operations.

Aarti Steel Nigeria Limited (Nigeria) PER (back)
The project started as a greenfield manufacturing operation to produce galvanized and corrugated iron sheets for use in roofing and has since expanded its operations and product line. The project sought to support of the Government’s economic diversification goal and provide employment, technology transfer/training and improve the quality of galvanized steel roofing products on offer in the country. The project is also consistent with MIGA’s operational priorities of supporting South-South investments. MIGA provided coverage against Transfer Restriction, Expropriation, and War and Civil Disturbance risks for the start-up operation and capacity expansion, with a gross exposure of US$11.3 million or US$9.7 million, net of reinsurance. The PER team produced a solid financial and economic analysis evaluation of this manufacturing project, with an in-depth analysis of the domestic industry, the project’s effect on local manufacturers and vice-versa, rising Nigerian consumer demand for quality products, and the distortionary effects of Nigeria’s numerous imports/levies that this project also benefits from.