Empresa Generadora de Electricidad Itabo, S.A.

MIGA issued a guarantee for up to $90 million to Coastal Power Dominicana Generation Ltd. (CPDG), of the Cayman Islands, for its equity investment in the privatization and development of Empresa Generadora de Electricidad Itabo, S.A. (Itabo), a 580 megawatt consortium of power stations in the Dominican Republic. The MIGA guarantee will cover the investor against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project is the acquisition and rehabilitation of several state-owned electricity generation assets by CPDG and Gener S.A. from the Government of the Dominican Republic. The privatized assets consist of five power stations with 580 megawatts in total nominal capacity near the cities of Santo Domingo, San Cristobal, and San Pedro de Macoris. The project will help produce a steady supply of electricity. In turn, greater reliability of the project, and others like it, may permit the government to reallocate its financial support to the sector.

CPDG is expected to provide and transfer both technical and managerial expertise to Itabo. Local staff will receive training on power plant planning, operations and maintenance. CPDG's expertise will play a significant role in Itabo as it will be operating in a newly deregulated generation market that will require new skill sets to tightly manage the marginal cost of generation, to negotiate contracts, and to participate in the spot market.