RG is happy to announce that the Tulu Moye geothermal project has been approved for coverage from the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group.
MIGA is a member of the World Bank Group that promotes cross-border investment in developing countries by providing guarantees in the form of political risk insurance and credit enhancement to investors and lenders. The agency derives its unique strength from the World Bank Group and from its structure as an international organization whose shareholders include most of the countries in the world, enabling the organization to provide protection against government actions that could disrupt projects, and assist in the resolution of disputes between investors and governments (quoted from the MIGA website).
In regard to the Tulu Moye geothermal project, the MIGA World Bank Group political risk insurance provides an extra layer of financial security to a sovereign guarantee by the Government of Ethiopia, which supports the original 25-year fixed price offtake agreement that Tulu Moye Geothermal (TMGO) has made with the Ethiopian Electric Power (EEP). The addition of the MIGA political risk insurance further strengthens the financial security of the project. RG is more than pleased with the addition of MIGA coverage to this long-awaited project.