Investment Guarantee Fund for West Bank and Gaza: Agreement between MIGA and the Palestinian Authority
Washington, D.C., March 4, 1997 — The Palestine Liberation Organization, on behalf of the Palestinian Authority, signed an agreement today with the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group, to establish the West Bank and Gaza Investment Guarantee Fund. The Fund will enable MIGA to provide investment guarantees against the major political risks of expropriation, transfer restriction, war and civil disturbance, and breach of contract, for new cross-border investments in West Bank and Gaza. The purpose of the Fund is to stimulate private investment flows for reconstruction of the territories and their reintegration into the world economy.
The Agreement was signed by the Minister of Planning of the Palestinian Authority Nabil Sha'ath and Vice President and General Counsel of MIGA Luis Dodero. MIGA's Executive Vice President Akira Iida, witnessed the signing and expressed his enthusiasm at the establishment of the Guarantee Fund: "I firmly support the creation of initiatives such as the Investment Guarantee Fund for West Bank and Gaza and eagerly anticipate the facilitation of foreign investment flows for economic reconstruction of the region." He further remarked that MIGA has already received a number of applications for guarantee of prospective investments in the territories.
The Fund will follow the parameters of MIGA's guarantee program and will be administered by the Agency. Governments of a number of countries have shown their willingness to contribute to the Fund. The World Bank also plans to make a contribution to the Fund under the sponsorship of the Palestinian Authority. MIGA continues to seek additional commitments from governments and multilateral institutions to support this initiative.