Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Light Servicos de Electricidade S.A.
- Project ID
- Fiscal year
- Not Active
- Guarantee holder
Houston Industries Energy, Inc.
- Investor country
- Host country
- Gross exposure
- $15.0 million
- Project type
MIGA reinsured a guarantee issued by the Overseas Private Investment Corporation of the United States to AES Corporation and Houston Industries Energy, Inc., both of the United States. The two companies each received a $7.5 million guarantee for their equity investments in the privatization of Light-Servicos de Electricidade, S.A. (Light) in Brazil. MIGA's guarantee covers the risks of transfer restriction and expropriation.
Light, the third-largest distributor of electric power in Brazil, supplies electricity to Rio de Janeiro. The project will improve the availability of electric power and the reliability of service. In addition, the successful privatization of Light is expected to encourage foreign and local investors to participate in the privatization of other sectors.
Employees will be trained in Brazil and the United States. Field technicians will be trained in operations and maintenance, and senior managers will receive advanced management training. Brazilian businesses will benefit from the local sourcing of most of the goods and services for the power project.