NEW DELHI: The Multilateral Investment Guarantee Agency (MIGA), part of World Bank Group Guarantees and the International Solar Alliance (ISA), on Friday announced the setting up of a fund to support solar projects. The MIGA-ISA Solar Facility, a multi-donor trust fund, will combine ISA's technical expertise and MIGA's capacity to mobilise financing, creating an innovative mechanism to accelerate the global adoption of solar energy, according to a statement.
The facility will offer concessional financing tools, including first-loss instruments and reinsurance capacity, to improve project bankability and lower the cost of MIGA guarantees. Initially, the facility will focus on supporting Sub-Saharan Africa, with plans to expand globally, the statement said.
Administered by MIGA, the facility will help scale up its guarantee issuance, mobilising private capital for solar and distributed energy projects. It will also provide cost-effective risk mitigation instruments to support the growth of solar projects in ISA member countries.
