Risk mitigation products provided by international financial institutions (IFIs) are guarantees (e.g., risk guarantees and credit guarantees) as well as risk insurance (e.g., political risk insurance). Guarantees and risk insurance products can cover the failure of the public sector party to meet specific obligations within a public-private partnership (PPP) project. By mitigating critical government performance risks for private investors IFI risk mitigation products are useful tools to enhance the bankability of PPP infrastructure projects.
Visit the section on Risk Mitigation Mechanisms for general information on the topic.
Links to Guarantee and Risk Insurance Products
World Bank Group
Asian Development Bank
Inter-American Development Bank
African Development Bank
A number of regional development banks and development finance institutions (DFIs) also offer guarantee and risk insurance products.
Further Reading
World Bank Group Guarantee Products Guidance Note by the PPP Legal Resource Center www.worldbankorg/ppplrc (PPPLRC), a product of the World Bank PPP Group. Edited by Victoria Delmon and Susanne Foerster, 2016. This publication summarizes key features of the guarantee products offered by each World Bank Group institution and highlights main similarities and differences among them, looking in particular to how these guarantee products may be used in support of public-private partnership (PPP) transactions for infrastructure projects in emerging markets. It is also available in Spanish - Productos de Garantía del Grupo Banco Mundial Nota de Orientación and French - Produits de Garantie du Groupe de la Banque Mondiale
Review of Risk Mitigation Instruments for Infrastructure Financing and Recent Trends and Developments by Tomoko Matsukawa and Odo Habeck, Trends and Policy Options No. 4, Public-Private Infrastructure Advisory Facility (PPIAF) 2007.