Catalog

	Table of Contents
p. 10 of 21 BACK | NEXT I. Introduction II. An Overview of the Political Risk Insurance (PRI) Market III. Review of ADB's Partial Risk Guarantee (PRG) Program IV. Recommendation for Changes to ADB's PRG A. Redefining the Coverage of the PRG Instrument B. Defining the Fee Structure C. Covering Interest D. Introducing a PRG Prudential Limit E. Introducing a Coguarantee Program and a Collaboration Program F. Improving the Product Name G. Improving Communications with the Market and Potential Users H. Creating a PRG Focus Group I. The Use of ADB’s Financing Instruments and Staff Implications J. Summary of Proposed Changes to the PRG V. Potential Benefits of the Proposed PRJ Program VI. Conclusion

Review of the Partial Risk Guarantee of the Asian Development Bank : IV. Recommendation for Changes to ADB's PRG

---

A. Redefining the Coverage of the PRG Instrument

46. The coverage of the PRG instrument must be made more explicit. Political risk events that may be covered by ADB’s PRG instrument include one, several, or all of the following:

1. Expropriation (CEND),
2. currency inconvertibility and/or nontransfer (CI),
3. political violence, and
4. breach of contract.

47. Making explicit the coverage of the four major areas of political risk will facilitate communication with the market and bring the instrument in line with established market practice by bilateral and multilateral organizations and the private sector. In addition, coverage of the PRG instrument should be expanded to go beyond BOT and BOO projects, as these have accounted for only a relatively small proportion of PSO.

Back IV. Recommendation for Changes to ADB's PRG	Next B. Defining the Fee Structure