19 December 2013
On 17 December 2013, Myanmar officially became a member of MIGA, the 180th country to do so. The MIGA Convention was signed by the Government of Myanmar in Washington DC in October this year during the World Bank's Annual Meetings, which was the key step towards becoming a MIGA member country. Since then, the Government of Myanmar has fulfilled all outstanding membership requirements, leading to its confirmation as a member this week.
Given the risks involved and Myanmar’s early stage of development, multilateral and ECA development funding assistance and political risk coverage is going to be a major factor in attracting the necessary investment into the country. For example, structuring power projects to provide comfort to lenders on the credit risk of the national electricity offtaker, Myanmar Electric Power Enterprise (MEPE), through extended political risk insurance, will be a key requirement for commercial lender participation in the power sector.
As such, potential investors and their lenders have, for some time, been keenly awaiting news of Myanmar’s MIGA membership, the confirmation of which now means that foreign direct investment into the country will be eligible for MIGA’s political risk guarantees and other support, and therefore should be a significant catalyst to investment.