MIGA is providing non-honoring of sovereign financial obligations cover of $500 million to the project’s lenders for a period of 15 years.
The NH20 is the main route connecting Ho Chi Minh City, the political and economic center of southern Vietnam, with the Central Highlands region of the country. The MIGA-insured loan funds the rehabilitation of a severely deteriorated section of the road, a source of significant transportation bottlenecks and accidents.
MIGA-supported project will help reduce travel time, improve safety on the road, said Victoria Kwakwa, World Bank Country Director for Vietnam.
Being implemented by the Government of Vietnam, the project will follow MIGA's environmental and social sustainability policies.
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment into emerging economies to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance and credit enhancement to investors and lenders.
Source: worldbank.org