Maputo Port Development Company S.A.R.L.

In fiscal year 2002, MIGA provided guarantees to Portus Indico-Sociedade de Servicos Portuarios S.A. (PI-SSP) of Portugal, of $459,000 to cover its $510,000 equity investment in, and $6.1 million to cover $6.8 million of shareholder loans plus interest to, the Maputo Port Development Company S.A.R.L. The guarantees were provided for fifteen years, against the risks of transfer restriction, expropriation, and war and civil disturbance.

This past fiscal year, MIGA increased the amount of coverage for the shareholder loan to $13.31 million, to reflect an increase in the amount being lent to the project enterprise. MIGA also expanded its coverage of $459,000 provided on PI-SSP's original equity investment of $510,000 to include breach of contract coverage.

The Maputo project involves the rehabilitation, development, financing and operation of the Maputo Port under a Build, Operate, and Transfer scheme. Further details of the project appear in MIGA's 2002 Annual Report.