The World Bank Group, a multilateral lending agency, supports development projects and sector-specific investment programs to build capital infrastructure in developing and transitional countries. The World Bank's central purpose is to reduce poverty and improve living standards by promoting sustainable growth and investments in people.

February 1999

INTRODUCTION TO THE WORLD BANK GROUP
The World Bank Group consists of five closely associated institutions (collectively known as "The World Bank Group"): the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Center for Settlement of Investment Disputes (ICSID), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). ICSID arbitrates and mediates investment disputes pursuant to a clause providing recourse to ICSID. This clause is often included in investment contracts which involve project funded by the World Bank Group. IFC lending and MIGA insurance programs support private-sector activities, and are described more fully below.

In order to better assist you, the Business Partnership Center (BPC) was launched in late 1996 to: serve as a central contact point for business inquiries about the World Bank Group's products and services; and promote cooperation and strategic partnerships with leading business organizations.

The BPC provides basic information and acts as a referral service directing incoming business inquiries (via phone, fax, e-mail, and visitors) to appropriate staff within the World Bank Group for action. Information brochures and resource guides on the Bank Group's products and services are provided and can also be accessed through the World Bank Group website: http://www.worldbank.org under "for businesses." The BDC also issues a newsletter which highlights the World Bank Group private sector initiatives and has produced a CD-ROM about the World Bank Group Products and services for the private sector.

CONTACT:
Business Partnership Center
The World Bank Group
1818 H Street, N.W.
Washington, D.C. 20433
Email: Business_Partner@Worldbank.org
Tel.: (202) 522-4272
Fax: (202) 522-1727

The World bank Monthly Business Briefing

The World Bank Group offers a Monthly Business Briefing, a one day program held at the Bank headquarters designed to familiarize private firms with the World Bank Group. Fees are $100 per attendee. The one day program offers seminars on How to Get Business from World Bank Projects, an Overview of the International Finance Corporation, and Overview of the Multilateral Investment Guarantee Agency, and an Overview of the World Bank and Consulting Services.

CONTACT

Ivonna Lejuez
Monthly Business Briefing
The World Bank
Room MC 10-442
1818 H St. N.W.
Washington, D.C. 10433
Tel.: 202-473-1819
Fax: 202-522-3317

Dates in 1999:
Thursday March 11
Thursday April 8
Thursday May 13
Thursday, June 10
Thursday, July 8
Thursday, September 9
Thursday, October 7
Thursday, November 4
Thursday, December 9
Briefings are not held in August

The US Department Of Commerce's Commercial Liaison Office

The US Department Of Commerce maintains a Commercial Liaison Office within the Office of the US Executive Director of the World Bank. This Liaison Office, operated and staffed by the Office of Multilateral Development Banks of the US & Foreign Commercial Service, provides counseling, information dissemination, and assistance to U.S. firms and individuals doing business on World Bank Group funded projects. Firms seeking the assistance of the Commercial Liaison Office should call 202-458-1954; fax 202-477-2967.

INTERNATIONAL FINANCE CORPORATION (IFC)
Investment Guidelines
In order to receive IFC funding, a project must be in the private sector; it must be technically sound; it must have a good prospect of being profitable; and it must benefit the local economy. The project must also be environmentally sound. To ensure the participation of other private investors, IFC funding is usually limited to 25 percent of the total project cost. Investments in small and medium-sized projects range from $100,000 to $1 million, and in larger projects from $1 million to $100 million.

Application Procedures
There is no standard application form for IFC financing. A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach IFC directly. This can be done by requesting a meeting or by submitting preliminary project or corporate information. After these initial contacts and a preliminary review, IFC will request a detailed feasibility study or business plan to determine whether or not to appraise the project.

IFC Products and Services
IFC offers three broad and complementary services: project finance, resource mobilization, and advisory services.

* Financial Products: IFC provides fixed-and variable-rate loans in a variety of leading currencies. These loans typically have maturities of 8 to 12 years, with grace periods and repayment schedules determined on a case-by-case basis in accordance with the borrower's cash flow needs. If warranted by the project, IFC provides longer-term loans and longer grace periods.

IFC's equity investments are based on project needs and anticipated returns. The Corporation is never the largest single shareholder and does not take an active role in company management. To meet national ownership requirements, its share holdings can, in some cases, be treated as domestic capital or "local" shares. IFC usually maintains its equity investments for a period of 8 to 15 years and is considered a long-term investor. IFC's preferred objective is to sell its shares through the domestic stock market.

IFC provides a full range of quasi-equity finance, including convertible debentures, subordinated loans, loans with warrants, and other instruments. These products are provided when necessary to ensure that a project is soundly funded.

Other financial products offered by IFC include credit and equity lines, venture capital, and leasing. The Corporation invests in credit lines and private equity funds to make longer-term finance available to small and medium-sized enterprises as they seek to enhance their competitiveness in more open economies around the world. Credit lines to developing-country banks help redress the limited availability of term financing that constrains the ability of these banks to provide working capital and investment financing for their corporate customers.

IFC's venture capital funds help channel investment to companies that are generally unlisted and that might not receive the notice of large investors.

* Resource Mobilization: IFC raises additional funds from foreign commercial banks by encouraging other institutions to make investments in its projects through the Corporation's loan participation program. It helps individual companies from emerging markets to tap international capital markets. IFC also raises funds from institutional investors through underwriting arrange-ments for public offerings or the private placement of shares, debentures, and other corporate securities.

* Advisory Services: IFC's third major area of assistance is advisory services offered independent of project financing. Advisory services are provided for a wide range of activities, including project assistance, privatization and restructuring, capital markets development, foreign investment, advice, and small and medium-sized business development.

The Corporation's project assistance services include financial as well as industry-specific issues, from the structuring and packaging of financial plans, to engineering and technical advice. This includes market, technical, and feasibility studies; project preparation and implementation; partnership arrangements; locating appropriate technology and sources of funding; and providing financial and operational assistance.

For further information: www.ifc.org

CONTACTS:

IFC
Corporate Relations Unit (general inquiries)
2121 Pennsylvania Avenue, NW,
Washington, DC 20043
Tel.: (202) 473-9331
Fax: (202) 974-4383
Email: information@ifc.org

Moscow Representatives

Edward Nassim, Director

Richard L. Ranken, Manager, General Manufacturing
(Armenia, Belarus, Georgia, Russia, and Ukraine)

ul. Pushechnaya, 2
103012 Moscow, Russia
Tel.: 011 7 (095) 883-7056, or 755-8818, or
011 7 (095) 913-7054
Fax: 011 7 (501) 775-8296, or 755-8298, or
011 7 (095) 913-7053

Washington Representatives

Central and Southern Europe Department
Harold Rosen, Director
(Azerbaijan, Moldova)
Tel.: (202) 473-8841
Fax: (202) 974-4314

Central Asia, Middle East and North Africa Department
Mohsen Khalil, Director
(Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan and others)
Tel.: (202) 473-6786
Fax: (202) 974-4396

THE MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA)
MIGA Investment Guarantee Services
MIGA provides investment guarantees (i.e., political risk insurance) against certain non-commercial risks to foreign investors in developing member countries. The program is designed to complement national and private investment insurance services.

MIGA underwrites both directly and in cooperation with other political risk insurers through coinsurance and reinsurance arrangements to provide investors more comprehensive investment insurance coverage worldwide. In 1995 it also introduced a brokerage program, encouraging investment brokers to cooperate with MIGA.

MIGA offers long-term, low-maintenance political risk insurance coverage to eligible investors for qualified investments in developing member countries. MIGA insures against currency transfer, expropriation, breach of contract and war and civil disturbance.

MIGA investment guarantees are long-term: The standard coverage term is 15 years (non-cancelable by MIGA), which may be extended to 20 years under certain circumstances. MIGA can insure new cross-border investments originating in any MIGA member country, destined for any developing member country. New investment contributions associated with the expansion, modernization, or financial restructuring of existing projects are also eligible, as are acquisitions that involve privatization of state-owned enterprises. Investment projects supported by MIGA must be financially, economically, and environmentally sound, and contribute to the development of the host country.

For further information: www.miga.org

CONTACT
Mr. Christophe S. Bellinger
Chief Guarantee Officer
Multilateral Investment Guarantee Agency
1818 H Street, N.W.
Washington, D.C. 20433
Tel.: (202) 473-6163
Fax: (202) 522-2630
Email: Cbellinger@worldbank.org

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)