Insurance products backed by AEGF
AEGF-backed insurance policies provide cover in the following areas:
- Political Risk Insurance, including confiscation, expropriation, nationalization and deprivation, transfer restrictions and currency inconvertibility, war, civil disturbance
- Extended Political Risk Insurance, including breach of contract by government parties, arbitral award cover (including offtaker default)
Stand-alone or as part of a comprehensive cover package, policies can be tailored to specific risks (e. g. insuring convertibility and transfer risk only) or power purchase agreement (PPA) clauses. This flexibility makes it possible to further optimize for cost-effectiveness
Risk counterparties can be sovereign and sub-sovereign public institutions, including majority state-owned utilities.
Process
As part of the accelerated underwriting process, due diligence takes approx. six weeks after full documentation – including project counterparties, government support documentation, Environmental and Social Impact Assessment reports, and business model – has been provided.
Claims regarding risks covered under an AEGF-backed insurance policy will be processed by the underwriter [ATI] in a transparent manner and are subject to a waiting period to collect all necessary evidence. For most risks covered under the African Energy Guarantee Facility, the standard waiting period is 180 days. Claims are settled within 30 days after the end of the waiting period.
Pricing
Pricing reflects commercial best practices and depends on risk evaluation. An initial pricing indication can be provided on average within 3-4 working days.