Companias Asociadas Petroleras S.A.

In its efforts to assist the flow of foreign direct investment to its developing member countries, this project broadened MIGA's collaboration with private insurers to provide increased coverage to investors seeking to invest in developing countries.

MIGA issued $68.7 million in guarantees to El Paso Energy International Company for its investment in an integrated oil and exploration project in Argentina. MIGA signed its first coinsurance contract with Zurich-American Political Risk for this project, under which the Agency will retain $40.2 million of coverage for its own account. MIGA guarantees cover the investment against the risks of expropriation and war and civil disturbance.

The investment will be used to restructure and expand the activities of Companias Asociadas Petroleras S.A. (CAPSA) in Neuquen Province. The project will expand a gas-fired power plant and build a liquid petroleum gas facility. The project is the only thermal power plant in the country with captive gas reserves, making it the lowest cost thermal plant in the country. The financial restructuring will allow more favorable terms for existing debt.

The project will have positive developmental benefits for western Argentina. It will increase the availability of a reliable source of electricity and will use clean-burning natural gas to provide an efficient source of low-cost power.

Note: Coinsurance contract has been cancelled.