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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Nicaragua

Empresa Distribuidora de Electricidad del Norte, S.A. (DISNORTE) and Empresa Distribuidora de Electricidad del Sur, S.A. (DISSUR)

$81.18 million
Power
Project Brief
Not Active
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MIGA has provided Union Fenosa Internacional S.A. (UFI) of Spain with a guarantee for $81.2 million to cover a $90.2 million equity investment in Empresa Distribuidora de Electricidad del Norte, S. A. (DISNORTE) and Empresa Distribuidora de Electricidad del Sur, S.A. (DISSUR) of Nicaragua. The coverage is for ten years and is against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract, including the unfair calling of a performance bond.

Over the past several years, the Nicaraguan government has focused on instituting structural reforms, including privatizing electricity generating and distribution facilities. Following successful completion of the first phase of privatization, UFI was awarded the electricity distribution concession for the western part of the country (divided into north and south), where some four million people reside. The project is expected to result in significant savings due to reduced losses in the distribution system, currently estimated at 30 percent. UFI expects to retain the core employees of DISNORTE and DISSUR, and has promoted the establishment of two new companies, which will provide support services to the project. The project should expand and improve services, allow under-served rural communities new access to electricity and contribute an estimated $50 million in taxes over the next seven years. The project is participating in a rural electrification program, which also receives financial support from the Swiss government. Additionally, the enterprise is providing scholarships for ten low-income students per year to attend Managua National University's engineering program. Meanwhile, the general economy is expected to reap benefits through improved reliability and quality, as a result of improved management and technology and equipment upgrades.

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