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<br /> ANNUAL REPORT 2013<br /> INSURING INVESTMENTS r ENSURING OPPORTUNITIES<br /> MIGA's Mission<br /> To promote foreign direct<br /> investment into developing<br /> countries to support economic<br /> growth, reduce poverty, and<br /> improve people’s lives.<br /> B | MIGA ANNUAL REPORT 2013<br /> contents<br /> 2 MIGA Fiscal Year 2013 Highlights<br /> 4 World Bank Group Fiscal Year 2013 Highlights<br /> 5 Message from World Bank Group President<br /> 7 MIGA Board<br /> 8 Message from MIGA Executive Vice President<br /> 11 MIGA Management Team<br /> 12 MIGA Development Impact<br /> 20 MIGA Business<br /> Operational Overview<br /> Research and Knowledge<br /> Regional Activities<br /> Technical Assistance<br /> Independent Evaluation Group<br /> Compliance Advisor/Ombudsman<br /> <a title="MIGA2013_AR page 1" href="http://viewer.zmags.com/publication/f8b8a0bc?page=1"> ANNUAL REPORT 2013 INSURING </a> <a title="MIGA2013_AR page 2" href="http://viewer.zmags.com/publication/f8b8a0bc?page=2"> MIGA's Mission To promote foreign dir</a> <a title="MIGA2013_AR page 3" href="http://viewer.zmags.com/publication/f8b8a0bc?page=3"> contents 2 MIGA Fiscal Year 2013 Highlight</a> <a title="MIGA2013_AR page 4" href="http://viewer.zmags.com/publication/f8b8a0bc?page=4"> Highlights fiscal year 2013 In fiscal year 201</a> <a title="MIGA2013_AR page 5" href="http://viewer.zmags.com/publication/f8b8a0bc?page=5"> Operational Highlights MIGA provided coverage for</a> <a title="MIGA2013_AR page 6" href="http://viewer.zmags.com/publication/f8b8a0bc?page=6"> world bank group fiscal year 2013 highlights ATIO</a> <a title="MIGA2013_AR page 7" href="http://viewer.zmags.com/publication/f8b8a0bc?page=7"> Leadership Perspectives Message from Dr. </a> <a title="MIGA2013_AR page 8" href="http://viewer.zmags.com/publication/f8b8a0bc?page=8"> supported transformational projects in fragile or</a> <a title="MIGA2013_AR page 9" href="http://viewer.zmags.com/publication/f8b8a0bc?page=9"> miga board A Council of Governors and a Board </a> <a title="MIGA2013_AR page 10" href="http://viewer.zmags.com/publication/f8b8a0bc?page=10"> Message from Izumi Kobayashi, MIGA Executive Vice</a> <a title="MIGA2013_AR page 11" href="http://viewer.zmags.com/publication/f8b8a0bc?page=11"> The Agency’s sector diversification shows strong </a> <a title="MIGA2013_AR page 12" href="http://viewer.zmags.com/publication/f8b8a0bc?page=12"> Message from Keiko Honda, MIGA Executive Vice Pre</a> <a title="MIGA2013_AR page 13" href="http://viewer.zmags.com/publication/f8b8a0bc?page=13"> miga management team Izumi Kobayas</a> <a title="MIGA2013_AR page 14" href="http://viewer.zmags.com/publication/f8b8a0bc?page=14"> Development Impact </a> <a title="MIGA2013_AR page 15" href="http://viewer.zmags.com/publication/f8b8a0bc?page=15"> There are signs that global economic activity is </a> <a title="MIGA2013_AR page 16" href="http://viewer.zmags.com/publication/f8b8a0bc?page=16"> MIGA's Role MIGA’s insurance against noncommerci</a> <a title="MIGA2013_AR page 17" href="http://viewer.zmags.com/publication/f8b8a0bc?page=17"> box 1 Mobilizing Investment in Côte d’Ivoire </a> <a title="MIGA2013_AR page 18" href="http://viewer.zmags.com/publication/f8b8a0bc?page=18"> Sub-Saharan Africa is a top priority for the Worl</a> <a title="MIGA2013_AR page 19" href="http://viewer.zmags.com/publication/f8b8a0bc?page=19"> box 2 When Business is Good for the Environment: </a> <a title="MIGA2013_AR page 20" href="http://viewer.zmags.com/publication/f8b8a0bc?page=20"> MIGA continues to improve its measurement of deve</a> <a title="MIGA2013_AR page 21" href="http://viewer.zmags.com/publication/f8b8a0bc?page=21"> box 3 MIGA History The idea for a multilater</a> <a title="MIGA2013_AR page 22" href="http://viewer.zmags.com/publication/f8b8a0bc?page=22"> Business </a> <a title="MIGA2013_AR page 23" href="http://viewer.zmags.com/publication/f8b8a0bc?page=23"> Operational Overview In fiscal year 2013, MIGA </a> <a title="MIGA2013_AR page 24" href="http://viewer.zmags.com/publication/f8b8a0bc?page=24"> ublic of 1.4 bourg 4.1 FinSlpaanidn 21..83 gu</a> <a title="MIGA2013_AR page 25" href="http://viewer.zmags.com/publication/f8b8a0bc?page=25"> 0 03 04 05 06 07 08 09 10 11 </a> <a title="MIGA2013_AR page 26" href="http://viewer.zmags.com/publication/f8b8a0bc?page=26"> box 1 Filling the Private Market Gap in Egypt </a> <a title="MIGA2013_AR page 27" href="http://viewer.zmags.com/publication/f8b8a0bc?page=27"> government officials of Mongolia, Myanmar, Vietna</a> <a title="MIGA2013_AR page 28" href="http://viewer.zmags.com/publication/f8b8a0bc?page=28"> Dispute Resolution and Pre-Claims Assistance: Kee</a> <a title="MIGA2013_AR page 29" href="http://viewer.zmags.com/publication/f8b8a0bc?page=29"> box 2 Bringing Power to Countries that Need it Mo</a> <a title="MIGA2013_AR page 30" href="http://viewer.zmags.com/publication/f8b8a0bc?page=30"> Table 1 – Outstanding Portfolio Distribution by S</a> <a title="MIGA2013_AR page 31" href="http://viewer.zmags.com/publication/f8b8a0bc?page=31"> AR chapter box colors Figure 7 Austria 23.9 U</a> <a title="MIGA2013_AR page 32" href="http://viewer.zmags.com/publication/f8b8a0bc?page=32"> Table 3 – MIGA's Outstanding Guarantee Portfolio </a> <a title="MIGA2013_AR page 33" href="http://viewer.zmags.com/publication/f8b8a0bc?page=33"> Table 4 – Projects Supported in Fiscal Year 2013 </a> <a title="MIGA2013_AR page 34" href="http://viewer.zmags.com/publication/f8b8a0bc?page=34"> Table 4 – Projects Supported in Fiscal Year 2013 </a> <a title="MIGA2013_AR page 35" href="http://viewer.zmags.com/publication/f8b8a0bc?page=35"> Table 4 – Projects Supported in Fiscal Year 2013 </a> <a title="MIGA2013_AR page 36" href="http://viewer.zmags.com/publication/f8b8a0bc?page=36"> Research and Knowledge As part of o</a> <a title="MIGA2013_AR page 37" href="http://viewer.zmags.com/publication/f8b8a0bc?page=37"> Increased access to financing Improved i</a> <a title="MIGA2013_AR page 38" href="http://viewer.zmags.com/publication/f8b8a0bc?page=38"> guarantees Asia and the Pacific and South Asia </a> <a title="MIGA2013_AR page 39" href="http://viewer.zmags.com/publication/f8b8a0bc?page=39"> stimulate greater harvesting of cashmere goats an</a> <a title="MIGA2013_AR page 40" href="http://viewer.zmags.com/publication/f8b8a0bc?page=40"> local farming community and people involved in th</a> <a title="MIGA2013_AR page 41" href="http://viewer.zmags.com/publication/f8b8a0bc?page=41"> guarantees Europe and Central Asia Growth in</a> <a title="MIGA2013_AR page 42" href="http://viewer.zmags.com/publication/f8b8a0bc?page=42"> In Georgia, access to finance is one of the main </a> <a title="MIGA2013_AR page 43" href="http://viewer.zmags.com/publication/f8b8a0bc?page=43"> strates Erste Serbia’s ability to find alternate </a> <a title="MIGA2013_AR page 44" href="http://viewer.zmags.com/publication/f8b8a0bc?page=44"> Ukraine Project name: Raiffeisen Bank AVAL Guar</a> <a title="MIGA2013_AR page 45" href="http://viewer.zmags.com/publication/f8b8a0bc?page=45"> guarantees Latin America and the Caribbean Ec</a> <a title="MIGA2013_AR page 46" href="http://viewer.zmags.com/publication/f8b8a0bc?page=46"> The project is fully in line with the priorities </a> <a title="MIGA2013_AR page 47" href="http://viewer.zmags.com/publication/f8b8a0bc?page=47"> guarantees Middle East and North Africa Politic</a> <a title="MIGA2013_AR page 48" href="http://viewer.zmags.com/publication/f8b8a0bc?page=48"> nationals working in the joint ventures, contribu</a> <a title="MIGA2013_AR page 49" href="http://viewer.zmags.com/publication/f8b8a0bc?page=49"> In this regard, the project is consistent with MI</a> <a title="MIGA2013_AR page 50" href="http://viewer.zmags.com/publication/f8b8a0bc?page=50"> guarantees Sub-Saharan Africa Despite the w</a> <a title="MIGA2013_AR page 51" href="http://viewer.zmags.com/publication/f8b8a0bc?page=51"> hampering the country’s economic development. A r</a> <a title="MIGA2013_AR page 52" href="http://viewer.zmags.com/publication/f8b8a0bc?page=52"> million covering SCDM’s shareholder loan to the p</a> <a title="MIGA2013_AR page 53" href="http://viewer.zmags.com/publication/f8b8a0bc?page=53"> need resulting from rapid urbanization. It will a</a> <a title="MIGA2013_AR page 54" href="http://viewer.zmags.com/publication/f8b8a0bc?page=54"> national customs with the objective of enhancing </a> <a title="MIGA2013_AR page 55" href="http://viewer.zmags.com/publication/f8b8a0bc?page=55"> Zambia Project name: Chobe Agrivision Company Lt</a> <a title="MIGA2013_AR page 56" href="http://viewer.zmags.com/publication/f8b8a0bc?page=56"> Zambia Project name: Yalelo Limited Guarantee h</a> <a title="MIGA2013_AR page 57" href="http://viewer.zmags.com/publication/f8b8a0bc?page=57"> Technical Assistance MIGA’s technical assi</a> <a title="MIGA2013_AR page 58" href="http://viewer.zmags.com/publication/f8b8a0bc?page=58"> Independent Evaluation Group The Independe</a> <a title="MIGA2013_AR page 59" href="http://viewer.zmags.com/publication/f8b8a0bc?page=59"> Compliance Advisor/Ombudsman The Office of</a> <a title="MIGA2013_AR page 60" href="http://viewer.zmags.com/publication/f8b8a0bc?page=60"> Management’s Discussion and Analysis (FY13) Finan</a> <a title="MIGA2013_AR page 61" href="http://viewer.zmags.com/publication/f8b8a0bc?page=61"> Overview Established in 1988, the Multilatera</a> <a title="MIGA2013_AR page 62" href="http://viewer.zmags.com/publication/f8b8a0bc?page=62"> Box 1 – Risks Covered by MIGA Guarantees MIGA pr</a> <a title="MIGA2013_AR page 63" href="http://viewer.zmags.com/publication/f8b8a0bc?page=63"> Table 3 shows the sector distribution of MIGA’s g</a> <a title="MIGA2013_AR page 64" href="http://viewer.zmags.com/publication/f8b8a0bc?page=64"> r Investments in complex projects, mostly in </a> <a title="MIGA2013_AR page 65" href="http://viewer.zmags.com/publication/f8b8a0bc?page=65"> Capital Adequacy Following the adoption of the Ec</a> <a title="MIGA2013_AR page 66" href="http://viewer.zmags.com/publication/f8b8a0bc?page=66"> 46% Infrastructure </a> <a title="MIGA2013_AR page 67" href="http://viewer.zmags.com/publication/f8b8a0bc?page=67"> Table 6 – Analysis of Operating Income and Net In</a> <a title="MIGA2013_AR page 68" href="http://viewer.zmags.com/publication/f8b8a0bc?page=68"> Corporate Governance General Governance Board Me</a> <a title="MIGA2013_AR page 69" href="http://viewer.zmags.com/publication/f8b8a0bc?page=69"> Code of Conduct and Business Conduct Framework St</a> <a title="MIGA2013_AR page 70" href="http://viewer.zmags.com/publication/f8b8a0bc?page=70"> Management’s Report Regarding Effectiveness of In</a> <a title="MIGA2013_AR page 71" href="http://viewer.zmags.com/publication/f8b8a0bc?page=71"> Management’s Report Regarding Effectiveness of In</a> <a title="MIGA2013_AR page 72" href="http://viewer.zmags.com/publication/f8b8a0bc?page=72"> Report of Independent Auditors on Management Asse</a> <a title="MIGA2013_AR page 73" href="http://viewer.zmags.com/publication/f8b8a0bc?page=73"> Report Of Independent Auditors on Management Asse</a> <a title="MIGA2013_AR page 74" href="http://viewer.zmags.com/publication/f8b8a0bc?page=74"> Independent Auditors’ Report KPMG LLP Suite 120</a> <a title="MIGA2013_AR page 75" href="http://viewer.zmags.com/publication/f8b8a0bc?page=75"> Independent Auditors’ Report (cont'd) Other Mat</a> <a title="MIGA2013_AR page 76" href="http://viewer.zmags.com/publication/f8b8a0bc?page=76"> Balance Sheet June 30, 2013 and June 30, 2012, ex</a> <a title="MIGA2013_AR page 77" href="http://viewer.zmags.com/publication/f8b8a0bc?page=77"> Statement of Operations For the fiscal years ende</a> <a title="MIGA2013_AR page 78" href="http://viewer.zmags.com/publication/f8b8a0bc?page=78"> Statement of Changes in Shareholders’ Equity For </a> <a title="MIGA2013_AR page 79" href="http://viewer.zmags.com/publication/f8b8a0bc?page=79"> Statement of Subscriptions to Capital Stock and V</a> <a title="MIGA2013_AR page 80" href="http://viewer.zmags.com/publication/f8b8a0bc?page=80"> Statement of Subscriptions to Capital Stock and V</a> <a title="MIGA2013_AR page 81" href="http://viewer.zmags.com/publication/f8b8a0bc?page=81"> Statement of Subscriptions to Capital Stock and V</a> <a title="MIGA2013_AR page 82" href="http://viewer.zmags.com/publication/f8b8a0bc?page=82"> Statement of Subscriptions to Capital Stock and V</a> <a title="MIGA2013_AR page 83" href="http://viewer.zmags.com/publication/f8b8a0bc?page=83"> Statement of Guarantees Outstanding As of June 30</a> <a title="MIGA2013_AR page 84" href="http://viewer.zmags.com/publication/f8b8a0bc?page=84"> Statement of Guarantees Outstanding (cont'd) As o</a> <a title="MIGA2013_AR page 85" href="http://viewer.zmags.com/publication/f8b8a0bc?page=85"> Notes to Financial Statements Purpose The Multil</a> <a title="MIGA2013_AR page 86" href="http://viewer.zmags.com/publication/f8b8a0bc?page=86"> In June 2013, the IASB issued its targeted re-exp</a> <a title="MIGA2013_AR page 87" href="http://viewer.zmags.com/publication/f8b8a0bc?page=87"> Reserve for Claims MIGA’s reserve consists of two</a> <a title="MIGA2013_AR page 88" href="http://viewer.zmags.com/publication/f8b8a0bc?page=88"> MIGA manages its investments on a net portfolio b</a> <a title="MIGA2013_AR page 89" href="http://viewer.zmags.com/publication/f8b8a0bc?page=89"> Fair Value Measurements FASB’s ASC 820-10, Fair V</a> <a title="MIGA2013_AR page 90" href="http://viewer.zmags.com/publication/f8b8a0bc?page=90"> In thousands of US dollars </a> <a title="MIGA2013_AR page 91" href="http://viewer.zmags.com/publication/f8b8a0bc?page=91"> Level 3 Financial Instruments: The following tabl</a> <a title="MIGA2013_AR page 92" href="http://viewer.zmags.com/publication/f8b8a0bc?page=92"> The following table provides information on the c</a> <a title="MIGA2013_AR page 93" href="http://viewer.zmags.com/publication/f8b8a0bc?page=93"> Membership: On December 20, 2012, Sao Tome and Pr</a> <a title="MIGA2013_AR page 94" href="http://viewer.zmags.com/publication/f8b8a0bc?page=94"> MIGA can also provide both public (official) and </a> <a title="MIGA2013_AR page 95" href="http://viewer.zmags.com/publication/f8b8a0bc?page=95"> A regionally diversified portfolio is desirable f</a> <a title="MIGA2013_AR page 96" href="http://viewer.zmags.com/publication/f8b8a0bc?page=96"> The provision for claims for the fiscal year ende</a> <a title="MIGA2013_AR page 97" href="http://viewer.zmags.com/publication/f8b8a0bc?page=97"> Note F: Pension and Other Post Retirement Benefit</a> <a title="MIGA2013_AR page 98" href="http://viewer.zmags.com/publication/f8b8a0bc?page=98"> In thousands of US dollars </a> <a title="MIGA2013_AR page 99" href="http://viewer.zmags.com/publication/f8b8a0bc?page=99"> Assumptions The actuarial assumptions used are ba</a> <a title="MIGA2013_AR page 100" href="http://viewer.zmags.com/publication/f8b8a0bc?page=100"> Investment Strategy The investment policy establi</a> <a title="MIGA2013_AR page 101" href="http://viewer.zmags.com/publication/f8b8a0bc?page=101"> Fair Value Measurements All plan assets are measu</a> <a title="MIGA2013_AR page 102" href="http://viewer.zmags.com/publication/f8b8a0bc?page=102"> In thousands of US dollars </a> <a title="MIGA2013_AR page 103" href="http://viewer.zmags.com/publication/f8b8a0bc?page=103"> securities, where available. If quoted market pri</a> <a title="MIGA2013_AR page 104" href="http://viewer.zmags.com/publication/f8b8a0bc?page=104"> </a> <a title="MIGA2013_AR page 105" href="http://viewer.zmags.com/publication/f8b8a0bc?page=105"> </a> <a title="MIGA2013_AR page 106" href="http://viewer.zmags.com/publication/f8b8a0bc?page=106"> Note G: Transactions with Affiliated Organization</a> <a title="MIGA2013_AR page 107" href="http://viewer.zmags.com/publication/f8b8a0bc?page=107"> Note H: Accumulated other Comprehensive Income (L</a> <a title="MIGA2013_AR page 108" href="http://viewer.zmags.com/publication/f8b8a0bc?page=108"> Note I: Fair Value Measurement Fair value is de</a> <a title="MIGA2013_AR page 109" href="http://viewer.zmags.com/publication/f8b8a0bc?page=109"> r Interest Rate Risk Interest rate changes affect</a> <a title="MIGA2013_AR page 110" href="http://viewer.zmags.com/publication/f8b8a0bc?page=110"> Appendices appendic</a> <a title="MIGA2013_AR page 111" href="http://viewer.zmags.com/publication/f8b8a0bc?page=111"> MIGA Member Countries – 179 Industrialized Countr</a> <a title="MIGA2013_AR page 112" href="http://viewer.zmags.com/publication/f8b8a0bc?page=112"> Governors and Alternates, as of June 30, 2013 Mem</a> <a title="MIGA2013_AR page 113" href="http://viewer.zmags.com/publication/f8b8a0bc?page=113"> Governors and Alternates, as of June 30, 2013 (co</a> <a title="MIGA2013_AR page 114" href="http://viewer.zmags.com/publication/f8b8a0bc?page=114"> Governors and Alternates, as of June 30, 2013 (co</a> <a title="MIGA2013_AR page 115" href="http://viewer.zmags.com/publication/f8b8a0bc?page=115"> Governors and Alternates, as of June 30, 2013 (co</a> <a title="MIGA2013_AR page 116" href="http://viewer.zmags.com/publication/f8b8a0bc?page=116"> Directors and Alternates: Voting Power, as of Jun</a> <a title="MIGA2013_AR page 117" href="http://viewer.zmags.com/publication/f8b8a0bc?page=117"> Directors and Alternates: Voting Power, as of Jun</a> <a title="MIGA2013_AR page 118" href="http://viewer.zmags.com/publication/f8b8a0bc?page=118"> Signatories to MIGA’s Convention, as of June 30, </a> <a title="MIGA2013_AR page 119" href="http://viewer.zmags.com/publication/f8b8a0bc?page=119"> Subscriptions to the General Capital Increase, as</a> <a title="MIGA2013_AR page 120" href="http://viewer.zmags.com/publication/f8b8a0bc?page=120"> Subscriptions to the General Capital Increase, as</a> <a title="MIGA2013_AR page 121" href="http://viewer.zmags.com/publication/f8b8a0bc?page=121"> Facultative Reinsurance Obtained by MIGA Investme</a> <a title="MIGA2013_AR page 122" href="http://viewer.zmags.com/publication/f8b8a0bc?page=122"> Active Guarantee Clients as of June 30, 2013 Aben</a> <a title="MIGA2013_AR page 123" href="http://viewer.zmags.com/publication/f8b8a0bc?page=123"> Photo Credits Cover Rebecca Post, MIG</a> <a title="MIGA2013_AR page 124" href="http://viewer.zmags.com/publication/f8b8a0bc?page=124"> Contact Information Senior Management Keiko Hon</a> <a title="MIGA2013_AR page 125" href="http://viewer.zmags.com/publication/f8b8a0bc?page=125"> </a> <a title="MIGA2013_AR page 126" href="http://viewer.zmags.com/publication/f8b8a0bc?page=126"> W W W. M I G A . O R G Multilate</a>