THE WORLD BANK GROUP NEwSLETTER PUBLISHED BY THE BusINESS PARTNERSHIP CENTER OF THE WORLD BASNK GiROUP VOLUME 1, No.-2* DECEMVBER. 1998 World Bank Group Partners with Australia _- ------- he World Bank Group signed a partnership agreement with the Australian Trade Commission (Austrade) and the Committee for Melbourne - -~~~~~~~~~ ~(a private, non-profit network of leaders from the business, scientific, and academic communities) on November 4, 1998 in the u ~~~Town Hall of Melbourne. The agreement will ease the way for Australian companies to learn I ~~~~~~~~~~~about business and procurement THE opportunities at the World Bank Group. _~~~~~~ WorMdAustrade and the Committee for elbourne will establish partnership centres in Sydney and Melbourne, which will disseminate information about the Bank _______ Group's products and services and promote joint activities that are of mutual interest. In a message video-taped for the signing, World Bank Group President, James D. X t}- MWolfensohne welcomed the partnership and -;hoped it would promote closer cooperation The RKihtHonorable, TheLordMayorofMelbouone, Ian A Deveson, Char'lesjfamieson (Austrade,),Andmw Ewin and allow the Bank Group to tap into the (WorldBank)andjanine Kirk (CooemitteeforMelboAne) at thesigningoftheCooperationAgnement in Melboon Australian private sector's skills and expertise, particularly on Asia. World Bank - Keidanren joint Venture in Vietnam's Power Sector The World Bank and Keidanren (the Japanese Federation of Economi c organizations) recently signed an agreement in Hanoi to jointly undertake a review of the power sector in Vietnam. This is part of an ongoing program of joint activities initiated in 1994, when the partnership was launched. The last joint senior-level meeting between Keidanren members and Bank Group staff took place in Japan in MrKatszhiimFujiowara, lanagingDieretorKeidanvn andinrAndmn' SteerCoint1yDimetorforVletnam, World February 1997, and focused on three Bank, at the szigningcerremionyforthejointstady' topics: private participation in Exchange Program. The study in Thenextjointmeetingbetweenthe infrastructure; developments in Vietnam is one ofthe activities resulting World Bank Group and Keidanren is Indochina; and the Bank Group's Staff from these discussions. expected to take place in early 1999. BusiEss PARINERsIP CENTER Nws, DECEMBER 1998 Learning Lessons from Partnerships Japan and U.K Announce ore than 70 leading programs and national roundtables/ Infrastructure Advisory M/ organizations from country workshops. The projects will Facility privateindustryandcivil be monitored and evaluated, and society, including British Petroleum, lessons learned will be applied to At the recent IMF/World Bank Generale des Eaux, Kellogg Company, ongoing partnership work around the Annual Meetings held in October 1998, Western Mining, CARE International, world. The aim is to disseminate the Japan and the United Kingdom WaterAid, and International Youth evidence through a sharing campaign, announced the establishment of a new Foundation, are participating in the and demonstrate that these tri- multi-donor technical assistance facility Business Partners for Development ;eseWVM sector partnerships provide to help developing countries improve (BPD) program. The aim is to win-win benefits to all parties the quality of their infrastructure study, support, and promote A ^\ involved. through private sector involvement. model examples of , The World Bank Group is The joint Japan-UK initiative - the partnership involving . f anticipated to contribute $3 Public-Private Infrastructure Advisory business, government, and m million over 3 years to the Facility (PPIAF) - to be managed by the civil society, working together for the initiative. This grant is intended to World Bank, will be formally launched development of communities around leverage finance from business, in early 1999. The new facility will: the world. foundations, and bilateral donors. The provide technical assistance to BPD is structured around four operational costs of the focus projects governments in developing countries clusters: Natural Resources, Water & will be borne by sponsoring companies, on strategies and measures to tap the Sanitation, YouthDevelopment, eid Road civil society organizations, and full potential of private sector Safety. The representatives from each governments. For more information involvement in infrastructure; and cluster select 3-4 focus projects and contact Nigel Twose at 202-458-9086, identify, disseminate and promote best undertake study visits, training fax: 202-522-2990 practice on matters relating to private sector involvement in infrastructure. For more information contact World Bank Guarantee for Thai Bond Issue Warrick Smith at 202-473-0965. The Electricity Generating Authority interest payment to the bondholders. aLocur ement Information of Thailand (EGAT) recently launched a As long as the sovereign reimburses the $300 million bond issue with a 10 year Bank for such an interest payment Available Online maturity at 285 basis points over within 60 days, the Bank's guarantee comparable US Treasuries with the help coverage for another interest Development Business - a bi-monthly UN of a World Bank partial credit installment continues through the publication available on subscription - guarantee. With this credit maturity of the bonds. Otherwise, - contains procurement information enhancement, the Bond was able to coverage of additional interest and business opportunities generated achieve a credit rating of A3/A-, payments would cease, though the through projects funded by the World significantly above the Thai sovereign Bank would continue to guarantee the Bank, the United Nations and regional ceiling. principal at maturity. development banks. For fast and easy Apart from a non-accelerable The deal is significant because the access to information, Development guarantee of the issue's principal, the Bank's guarantee has enabled an Asian Business will be available online by the World Bank for the first time borrowertoaccessinternationalcapital end of December, 1998. For more guaranteed a single coupon payment markets in a time of financial crisis. The information contact the Development on a rolling basis. Under the structure, guarantee has also helped EGAT obtain Business Liaison Office at 202-458- the Kingdom of Thailand would be the market financing ata reasonable spread 2397; Fax: 202-522-3316 or email to: primary guarantor for the payment of and maturity and has established a dbusiness@worldbank.org. You can scheduled coupons, but in case of benchmark for its future bond also preview the internet site at: default the World Bank would make the operations. http://www.devbusiness.com 2 BusNEEss PARwNERBsm CENrER NEWS, DECEMBER 1998 Peter Woicke to Become New Motomichi Ikawa, Executive Vice Executive Vice President for IFC President, MIGA Mr. Peter Woicke, Mr. Motomichi Ikawa a German national, will succeeded Mr. Akira lida take over as Executive as Executive Vice Presi- Vice President of the dent of MIGA injuly 1998. International Finance Priortojoining MIGA, Mr. Corporation, from Ikawa was Senior Deputy- jannik Lindbaek on Director Generalforf nte January 1, 1999. Mr. national Finance with Woicke is a member of Japan's Ministry of Fi- J.P. Morgan's executive nance (MOF). InE a career management group, spanning almost 25 years and is currently based with the MOF, Mr. hkawa in Singapore as served as Director of the Chairman of J. P. International Organiza- Morgan Securities Asia. tions division, Director of Mr. Woicke has strong credentials in the the Foreign Exchange and Money Market division, and Di- international finance services arena, having had direct rector of the Development Policy Division. Throughout his exposure to important emerging markets both in Latin career at the MOF, he has been very involved in economic America and Asia. As J.P. Morgan's senior executive in development and in facilitating private sector investment Asia, he has overseen a broad array of activities, including in developing countries. From 1994 to 1996, he served as providing direct finance, as well as advising governments Managing Director of the Coordination Department in and banks on restructuring and privatization. Japan's Overseas Economic Cooperation Fund. BPC Launches New CD-ROM MazIGA's v z n PrivatizationLink P,~ject 0PP0t,tU,,fis in En,e,g rng o THE WORLO BANK GROUP 2 The BPC recently The Multilateral Investment Guarantee Agency (MIGA) IBRD IDA . IFC . MIGA launched a new CD- recently launched PrivatizationLink, an Internet based ProdU-; t and Ses :M j ROM, which provides information service for firms seeking to invest in privatized -P erteeSectdr a comprehensive enterprises in the world's emerging markets. The service, audio-visual guide to initially to cover selected countries in Central and Eastern the World Bank Europe, Central Asia and Sub-Saharan Africa, will later expand -: ese'~te4~yt :- :Group institutions to include other regions. PrivatizationLink is a specialized arhtet'sh.p Cnte -0and their many facility within MIGAs electronic marketplace - the Investment :w+-<- «v-; products and services Promotion Agency Network (IPAnet). It provides online for the private sector. access to business profiles of state-owned companies and It features information about: procurement opportunities; assets currently for sale, along with details of the relevant debt and equityfinance; loan syndications: country and market laws, regulations and procedures governing these data; political risk insurance; guarantees; advisory services and transactions. Access to PrivatizationLink on the internet is special resources online. It is also linked to various World free at: http://www.privatizationlink.com, although first-time Bank Group and partner websites. users are required to register with the service. To order this CD-ROM ($50.00 per copy), please call For more information contact Stephan Dreyhaupt at 202- the Business Partnership Center at 202-522-4272 or the 478-2943, fax: 202-522-2650, or send email to: Infoshop at 202-458-5454 Fax: 202-522-1500, or send sdreyhaupt@worldbank.org. email to: pic@worldbank.org BusmSEss PARTNERsmp CENrER NEws, DECEMBER 1998 3 Bank's Trust Fund Program Innovations in MIGA's Guarantee Invites Private Contributions Activities T he World Bank is now actively identifying Cooperative Underwriting Program. MIGA is working in private sector sources of funding for its partnership with private insurance companies to underwrite the Trust Fund Program which, to date, has political risks associated with investing overseas. The Cooperative been primarily funded by its member countries and Underwriting Program (CUP) is a form of coinsurance designed to multinational agencies. (A Trust Fund is a financial encourage private insurers to cover investments in developing and administrative arrangement between the Bank countries, with the backing of the World Bank Group. Under the and an external donor under which the donor CUP, MIGA has signed a coinsurance agreement with Brockbank entrusts funds to the Bank to finance specific Syndicate Management Ltd. of Lloyd's of London to provide up to activities in developing countries). US$ 100 million in additional insurance per project on an ad hoc The Bank's policy allows it toj accept funds basis. Recently, MIGA also signed its first contract with Zurich- provided: the funds advance cou'ntry or global American Political Risk for an integrated oil and gas exploration interests; the Bank retains decision-making project in Argentina. Under the contract, MIGA will retain $40.2 authority over the use of funds during the million of the $68.7 million guarantee coverage provided, for its implementation phase; and no exclusive own account. advantages accrue to the donor that are not Reinsurance Agreement. Through a reinsurance agreement, available to the industry at large. Through the program, the Bank and donors can work in which has recently been promoted by MIGA, the Agency was able partnership tefetvllto issue its largest guarantee to date. The US$90 million guarantee peartnership to effectively leverage intellectual and financial resources improve the qualityandvolume covers a shareholder loan by Banque Nationale de Paris for ofsinancialesournachiesive thared qbal ndevelolmen expansion of its branch in St. Petersburg. The guarantee was also objectives. MIGA's first reinsurance contract with the Compagnie Fran,aise Recently, contributions from the private sector d'Assurance pour le Commerce Exterieur (COFACE) of France. (both in cash and in kind) have been accepted for Mobile Offices. MIGA set up its first mobile offices overseas in financing applied agricultural research, provision response to investor demands for a field presence. In March 1998, of informatics solutions, and eradication of tropical MIGA operated a three-week office in London and held a major diseases. General inquiries may be addressed by seminar for insurance brokers. More recently, MIGA staff established email to financial partners@worldbank.org. You temporary field offices in Istanbul (Oct. 12 - 23) and inJohannesburg may also direct inquiries to Ms. Dale M. Hill at 202- (Oct. 19 - Nov. 5) to breif potential investors about the Agency's 473-4276 or send email to: dhillkworldbank.org. activities. IFC Appoints Sumio Takeichi as New Marketing Director ; s r Mr. Sumio Takeichi, a Japanese The World ank A3*oupnational, was recently appointed as Bwsiness Partnership ~CeuWr Director, Marketing and Business Development for the International 1818 H Sreet NW C j10355Finance Corporation (IFC). Mr. Takeichi, Washi~ton p2,20433 who assumed his position on September emailBusies~_affir@~vr1db1, comes to IFC following a 33-year _5H->J ank.-rg career with Mitsubishi Corporation. He Comments will direct efforts at building IFC's new ~~~ y ~~~~~~ business partnerships with financa institutions, trading houses, and manufacturers as well as other 4 BUSesh4fCeh1N'r. international agencies. 4 BusmNEss PARTNERsIm CENmx Nws, DECEMBER 1998