Asia and the Pacific
The COVID pandemic, the war in Ukraine, a structural slowdown in China, and financial tightening in the U.S. are having an impact on developing East Asia and Pacific (EAP)’s economic recovery. Growth is now projected at 5% in 2022, down from 5.4% projected in October.
For South Asia, growth prospects have weakened due to tightening financial conditions, with large downside risks in most countries given limited fiscal space and depleting reserves, underscoring the need to roll back market distortions introduced during the pandemic and address debilitating socioeconomic divides that constrain South Asia’s potential.
In FY23, MIGA issued a new guarantee for $900 million with respect to an existing mining project in Mongolia.
In FY21-20, MIGA supported a hydropower plant project in the Solomon Islands and an electric transmission line project in Cambodia, issuing $88.1 million in total in the EAP region. Additionally, both these projects represented the first guarantees issued by the Agency in the two countries. For South Asia, MIGA issued guarantees for $444.2 million to support two projects. The first project was a Political Risk Insurance (PRI) guarantee for $87.4 million in relation to a hydropower project in Nepal; the second project was a Non-Honoring of Financial Obligations (NHFO) guarantee for $356.8 million in relation to a fertilizer production facility in Bangladesh.
EXAMPLES OF MIGA-SUPPORTED PROJECTS IN ASIA AND THE PACIFIC
In 2022, MIGA issued guarantees totaling $407 million for the acquisition and refinancing of a power plant in Bhola District in Bangladesh.
The guarantees will cover equity investments by Actis against the risk of breach of contract-arbitral award default for a period of up to 20 years. Acquisition will ensure highly efficient electricity supply, improve resilience to flooding to benefit the local community, and mobilize two international commercial lenders entering Bangladesh for the first time.
Timothy Histed Head, Southeast Asia and Australasia
Jae Hyung Kwon Head, South Asia
Susumu Takahashi Head, Japan and Vice Head, Southeast Asia
- Jaeyoung Jin Head, North Asia (China, Mongolia, Korea)
Lin Cheng Head, China