Risk Mitigation Facility (RMF)
The Risk Mitigation Facility (RMF) is part of the IDA Private Sector Window and provides project-based guarantees without requiring sovereign indemnity.
Its objective is to mobilize private investment in large-scale infrastructure and Public-Private Partnership (PPP) projects, especially in challenging markets. RMF offers two key instruments: (i) liquidity support to backstop state-owned enterprise (SOE) payment obligations to private investors, and (ii) political risk insurance and coverage for government counterparties on project finance loans and equity.
The RMF is only used when existing World Bank Group (WBG) instruments are insufficient—such as when a country’s IDA allocation is inadequate or committed elsewhere. It complements the WBG’s broader strategy to expand guarantee tools and de-risk private sector participation in infrastructure.
