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IDA18 IFC-MIGA Private Sector Window

The International Development Association (IDA) is the World Bank’s fund for the poorest countries, constituting the single largest source of concessional finance for economic development and basic social services in these countries. Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing loans and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions. IDA delivers long-term financing through three-year capital replenishments from its development partners, credit repayments from IDA clients and internal resources.

The Eighteenth Replenishment (IDA18) received a record $75 billion commitment, the largest in IDA’s 56-year history. The groundbreaking package represents a paradigm shift, for the first time, blending donor contributions and credit reflows with funds raised on capital markets, as well as introducing policy innovations that will help IDA clients on a path to achieving the Sustainable Development Goals (SDGs) by investing in growth, resilience and opportunity.

As part of the IDA18 replenishment, the World Bank Group (WBG) created a $2.5 billion IDA18 IFC-MIGA1 Private Sector Window (see implementation Board paper) to catalyze private sector investment in IDA-only countries, with a focus on fragile and conflict-affected states (FCS). PSW is based on the recognition that the private sector is central to achieving the Sustainable Development Goals (SDGs) and IDA18 objectives, and the need to help mitigate the uncertainties and risks, real or perceived, to high impact private sector investment. The PSW is an option when there is no commercial solution and the World Bank Group's other tools and approaches are insufficient.

The addition of the PSW to the World Bank Group’s toolbox enables IDA to deepen its work in the space where public policy and private investment meet. The PSW is a key pillar of IFC’s 3.0 strategy, which aims to tackle difficult development challenges by creating markets and mobilizing private investors, and MIGA’s strategy focusing on IDA countries. The PSW builds on the World Bank Group’s robust support for private sector investment in IDA countries, totaling more than $100 billion in the past decade. It provides an opportunity for IDA to make strategic use of public resources to catalyze private investments in these challenging markets, by leveraging IFC’s and MIGA’s business models and client relationships, and complements IDA’s existing support for policy and business climate reforms.

The PSW is deployed through four facilities: (1) a Risk Mitigation Facility (RMF) to provide project-based guarantees without sovereign indemnity to crowd-in private investment in large infrastructure projects and public private partnerships (PPPs) supported by IFC; (2) a MIGA Guarantee Facility (MGF) to expand the coverage of MIGA guarantees through shared first-loss and risk participation akin to reinsurance; (3) a Local Currency Facility (LCF) to provide long-term local currency investments through IFC in countries where capital markets are not developed and market solutions are not sufficiently available; and (4) a Blended Finance Facility (BFF) to blend PSW support with pioneering IFC investments across sectors with high development impact, including small and medium enterprises (SMEs), agribusiness, health, education, affordable housing, infrastructure, climate change mitigation and adaptation, among others. (See an overview of the four facilities.)

The PSW became operational on July 1, 2017. As of July 31, IDA’s Board of Executive Directors has approved $577 million across PSW facilities. Of this amount, $454 million has been approved from IFC managed BFF and LCF while $122 million has been approved under the MIGA-managed MGF. A robust downstream pipeline of nearly $900 million and midstream opportunities of over $1 billion reflect strong demand and implementation of the window. The list of approved IDA PSW projects is available here.

To achieve the PSW objectives, the World Bank Group has developed PSW eligibility and prioritization criteria, governance arrangements, and a performance and results framework to monitor the performance and outcome of the PSW.

The PSW facilitates investments but does not fund private investment on its own. Through different facilities, it backstops or blends with IFC investments or MIGA guarantees to support private-sector investments. Investors with potential investment proposals should engage with relevant IFC and/or MIGA country or investment officers, and follow IFC and MIGA’s engagement process.

Questions about the PSW and its Facilities can be addressed to the following contacts:

  • Overall PSW: Federica Dal Bono, Lead Strategy Officer, World Bank, fdalbono@worldbank.org
  • Risk Mitigation Facility (RMF): Juan Carlos Pereira, Principal Investment Officer, IFC, jpereira@ifc.org
  • Local Currency Facility (LCF): Kevin Kime, Principal Financial Officer, IFC, kkime@ifc.org
  • Blended Finance Facility (BFF): Kruskaia Sierra-Escalante, Manager of Blended Finance Unit, IFC, ksierraescalante@ifc.org
  • MIGA Guarantee Facility (MGF): Nabil Fawaz, Operations Manager, MIGA, nfawaz@worldbank.org

PSW Facilities

Facility Instruments offered to end-use clients Sector(s) Additionality Indicative Allocation (US$ M)

Risk Mitigation Facility

Project-based guarantees without sovereign indemnity, to private sector transactions with IFC origination and participation

(power, water & sanitation, transport & logistics, municipal infrastructure, telecom, and natural resource-related infrastructure) & PPPs

Increased investment in PSW-eligible countries above IFC’s baseline. Expanded uses for existing guarantee products


MIGA Guarantee Facility

MIGA political risk insurance products to private sector

Infrastructure (power, water & sanitation, transport & logistics, municipal infrastructure, telecom and natural resource-related infrastructure), agribusiness, manufacturing and services, financial markets & PPPs

Increased MIGA-supported investment and risk participation in PSW-eligible countries above MIGA’s baseline


Local Currency Facility

Local currency denominated loans to private sector clients (e.g., financial intermediaries that lend to SMEs) who operate in markets where there are limited currency hedging capabilities

Sectors will be linked to the underlying loans

Enables local currency financing for clients in PSW-eligible countries (e.g., SMEs) who operate in markets where there are limited currency hedging capabilities

Development of local currency financing instruments, risk mitigation, and capacity building


Blended Finance Facility

Loans, subordinated debt, equity, guarantees and risk sharing (to private sector)

High-impact pioneering investments across sectors (e.g., SMEs, access to finance, infrastructure, agribusiness & manufacturing, health & education, affordable housing, telecom and technology, climate change, municipal finance, etc.)

Increased investment in PSW-eligible countries above IFC’s baseline

Blended finance investments in new sectors and to underserved client base (e.g., early-stage and women-owned SMEs)

Expanded uses for existing products (e.g., longer tenors)



[1] IFC: International Finance Corporation. It is the largest global development institution focused on the private sector in developing countries, providing and mobilizing scarce capital, knowledge, and partnerships that can help address critical constraints to private sector development. MIGA: Multilateral Investment Guarantee Agency. MIGA promotes foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people's lives.

What is the Private Sector Window? Learn More (pdf) »