Gruopo del Istmo de Papagayo, S.A.

In fiscal 2001, MIGA issued a guarantee to Wings of Papagayo, LLC to protect its equity investment in Grupo del Istmo de Papagayo, S.A., a Costa Rican development project against the risk of transfer restriction. This past year, MIGA increased the coverage from $16.4 million to $38.3 million, to cover the total equity investment of $27.6 million, and a shareholder loan of $15.0 million to the project. The coverage is against the risk of expropriation, and is for 13 years.

The project, which is dedicated to high standards as an eco-sensitive project, involves the development of a 210-room resort set on approximately 120 acres of the Papagayo Peninsula in the country's pacific northwest province of Guanacaste. Further details of the project appear in MIGA's 2001 Annual Report.