World Bank Partial Risk Guarantee (PRG) Facility Status

Following approval of the guarantee framework in March, the World Bank team strengthened its cooperation with potential beneficiaries of the World Bank´s PRG for small-scale renewables. The PRG is expected to be an important contributor to the risk mitigation package of the GET FiT Program and offers coverage of:

  • UETCL Payment Risk under (PPA) monthly invoices;
     
  • GOU Termination Payment Risk
     
  • Commercial debt that has not been re-paid by the project company as a result of the failure of UETCL or GoU (as applicable) to pay undisputed amounts under the PPA/IA 

Due to the delays in the finalization process of the PPA /IA, the World Bank team has not been able to conclude guarantee agreements with any developers yet. However, several developers indicate that they would be interested in the UETCL payment risk component in particular. Further, it seems that only a very limited number of projects will be eligible for coverage through the commercial debt component as most projects are financed by Development Finance Institutions. The World Bank Team has actively approached developers selected under the GET FiT Solar Facility with an intention of including solar projects in their portfolio.