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Risk Mitigation Facility (RMF)

Objective and Additionality

The Risk Mitigation Facility (RMF) provides project-based guarantees without sovereign indemnity to crowd-in private investment in large infrastructure projects. The RMF seeks to catalyze private sector investment in large-scale infrastructure and Public-Private Partnerships (PPPs) by providing the following risk mitigating products: (i) liquidity support instruments backstopping payment obligations of state-owned enterprises (SOEs) to private projects; and (ii) political risk insurance (PRI) and government counterparty coverage for project finance loans and equity investments.

The RMF is utilized only when existing WBG instruments are not able to meet demand (for instance, where the client country’s IDA country envelope is insufficient to directly deploy a guarantee or are earmarked for other priorities), and its use will be in line with the WBG approach to expanding guarantee products.

A list of approved IDA PSW projects is available here.

Contact: Juan Carlos Pereira, Principal Investment Officer, IFC, jpereira@ifc.org