Project Agreement These are agreements to be concluded between the World Bank (IDA/IBRD) and the project company and/or the sovereign/sub-sovereign, depending on the specific structure. These contracts include standard obligations for IDA/IBRD, such as. B the underlying use funds, the proper functioning of the project, compliance with World Bank environmental standards, etc. Guarantee Support Agreement This is a contract between the government, the project company and the World Bank, with the government pledging to pay the outstanding amounts to the project company if the public entity or sub-state, which is the direct debtor, does not pay the payments. This treaty allows governments to address the default situation without unnecessarily triggering the World Bank guarantee. Our guarantees are often combined with other instruments of the World Bank Group, including iFC and MIGA. They can also be combined with bonds to finance transactions ranging from construction to operations, which can lead to an increase in the rating of these bonds. Section 3 – Restrictions on bank guarantees and bonds are powerful catalysts to end private sector investment and trade finance that support economic growth and improve public services in developing countries. Over the past two decades, our guarantees have mobilized more than $42 billion in commercial capital and private investment, including energy, transportation solutions, government and state-owned enterprises financing, innovative trade finance solutions and unique support to fragile countries. Before the introduction of government guarantees related to the use of World Bank guarantees, a significant cost-benefit analysis is required. Nevertheless, they can be intelligently used as powerful and targeted instruments.
encourage foreign private investment through guarantees or holdings in loans and other private investor investments; and where private capital is not available on reasonable terms to supplement private investment by providing, on reasonable terms, productive financing from their own capital, funds they collect and other resources.