MIGA Partners with Israeli Insurer on Brazilian Telecom Project

MIGA Partners with Israeli Insurer on Brazilian Telecom Project

WASHINGTON, DC, July 16, 2002 — The Multilateral Investment Guarantee Agency (MIGA) of the World Bank has issued $83.5 million in guarantee coverage for a telecommunications project in Brazil. $53 million of the coverage has been reinsured by the Israel Foreign Trade Risks Insurance Corporation (IFTRIC), marking the first collaboration between the two organizations. This is MIGA's second guarantee for the project.

The new guarantee covers the Israeli company ECI Telecom Ltd. for up to eight years-against the risks of transfer restriction, expropriation, and war and civil disturbance-for its loan investment to Global Village Telecom Ltda. of Brazil. ECI Telecom is a global provider of voice, data, video and multimedia telecommunication services, maintaining a sales and customer support network in over 145 countries.

The project involves the construction and operation of a wireless telephone network in the center and south of Brazil, which provides state-of-the-art telecommunication services to residents and businesses. The project should also increase competition in the telecom sector, generate significant tax revenues and employment, and spur local business.

"This relationship is good for everyone," says Uri Bernstein, managing director of IFTRIC. "MIGA is contributing to the activities of Israeli businesses into developing countries. We believe it will encourage many Israelis to use the joint MIGA-IFTRIC vehicle, and that we'll see a lot more business down the road."

"IFTRIC's reinsurance enabled MIGA to expand its coverage for the project," adds Roger Pruneau, Vice President Guarantees. "We think this project has a strong development impact, and we look forward to repeating this successful collaboration with IFTRIC for other projects in different sectors and countries."
 

For information
On MIGA, contact:
Federica Dal Bono, fdalbono@worldbank.org,
t. 202.458.9292