Search For Projects        
             
     
             

 


This list represents a selection of ATI projects

Country:
Sector:
Energy
Insurance Type:
Political Risk Insurance for Equity
Project:
Geothermal Power Plant
Maximum Sum Insured:
$5 million

Power shortages and lack of supply to meet demand has hampered Kenya's economic growth. A mere 15% of the population has access to electricity, and there are numerous blackouts and long waiting lists for connection. The geothermal power plant is designed to relieve severe power shortages, decrease the country's dependency on energy imports and thermal energy and to reduce green house gas emissions. The plant, with a combined capacity of 48 MW, uses environmentally-friendly geothermal energy to generate electricity rather than the less green hydrocarbons, producing low to nearly no green house gas emissions.

ATI provided reinsurance to the Multilateral Investment Guarantee Agency, a member of the World Bank Group, to help protect the investor against the risks of Currency Transfer Restrictions, Expropriation and War and Civil Disturbance.

Country:
Sector:
Manufacturing
Insurance Type:
Whole Turnover Credit Risk Insurance
Project:
Chemical Exports
Maximum Sum Insured:
$2.1 million

Many regional companies can suddenly see their business grow and evolve to levels that require additional funding. This is the case with a Kenyan company, which imports, markets and distributes chemicals on behalf of a number of global companies. The companys business model in the industrial chemicals segment has evolved to where they need to sell directly to their end-customers in Kenya, Mozambique, Tanzania and Uganda. To cover these buyers in East Africa, the company obtained a $5 million trade finance facility from a regional bank. ATI supported the deal by supplying $2.1 million worth of Credit Risk Insurance.

Insurance Type:
Sovereign Buyer Non-payment Cover
Project:
Hospital Rehabilitation
Maximum Sum Insured:
$642,000

One of the largest hospitals in Kenya needed to expand its intensive care services to accommodate demand. To complete the expansion, the hospital required a new Intensive Care Unit. A major European based electronics company supplied the necessary equipment and ATI provided insurance coverage against the risk of non-payment for the contracted purchase price.

Country:
Sector:
Infrastructure
Insurance Type:
Construction Contract Post Performance Sovereign Buyer
Project:
Road Reconstruction
Maximum Sum Insured:
$1.3 million
In the early 1990s, Kenyas economy contracted sharply. This led to very little construction and maintenance to the roads network. By 1993, the dedicated Fuel Levy Fund helped to stem the deterioration.

The Kenya Roads Board attributes constraints to Kenyas economic and social development to the poor state of road infrastructure. To improve the road networks, the Ministry of Roads and Public Works implemented a plan to rehabilitate at least 60 major and minor roads in Kenya. This road reconstruction project, falls within the scope of the governments plan.

The road runs through the heart of the tea producing area of Kenya and will help improve the transport to market of one of Kenyas biggest exports. A local company with experience in civil infrastructure construction won the government bid. Before starting construction on the 47.6 km road, the company requested insurance to protect against Non-honouring of Sovereign Obligations. ATI issued cover for the full project amount and the project was able to proceed.


Country:
Sector:
Agriculture
Insurance Type:
Whole Turnover Credit Risk Insurance
Project:
Flower Exports
Maximum Sum Insured:
$490,000

A major flower producer has been growing and exporting T-Hybrid roses for the past 10 years. Their hydroponically grown roses are environmentally safe using liquid fertilization that is fully recycled and absent any hazardous nitrates or phosphorous. Since 1996, the company has expanded its operations and exports to buyers in some 13 countries located in Europe, the Middle East and Asia.

The company took out its first policy with ATI in 2004 to protect its sales against the risk of buyer payment default. In 2007, ATI paid a claim arising from the payment default by one of its buyers. Confident with the protection it was receiving, the company renewed its cover with ATI for a fourth time.

Country:
Sector:
Telecommunications (ICT)
Insurance Type:
Sovereign Buyer Non-payment Cover
Project:
Telecommunications
Maximum Sum Insured:
$10.6 million

This project, which involves laying down fibre optic cable, is central to the Kenyan government's plans to revamp its telecommunication sector. The cable will cover the Central, Western, Coast and North Eastern provinces, totaling 5,000 km.

Fibre optics is a medium for carrying information from one point to another in the form of light and it is much cheaper than the traditional copper form of transmission.

Rapid development of the country's fibre optic network will help it achieve middle income status, as laid out in the government's Economic Blueprint, Vision 2030. Under the plan, Kenya will rival countries like India in the business process outsourcing sector.

A fibre optic cable will increase internet and data connectivity, bring down telecommunications costs and make it easier for companies to compete on the international market. It will also give access to e-learning opportunities to people in the remotest areas of the country, who might not otherwise have received any training.

The government contracted a global communications company based in France and specializing in broadband communications and convergence activities. The company was contracted to deliver, install, commission, test and provide long term technical support to the project. To cover their investment, ATI provided Payment Default by a Sovereign Obligor insurance to the company and the project is now well underway, with completion expected by the end of 2009.

Insurance Type:
Political Violence Excess of Loss Reinsurance
Project:
Reinsurance Cover for Political Violence, Civil Disturbance, Sabotage & Terrorism
Maximum Sum Insured:
$14.9 million

In early 2008, political and civil disturbance in Kenya and the widespread fears of economic instability led to some creative thinking by the private insurance sector. One of the leading local companies has been providing all forms of general insurance to Kenyans for more than 70 years.

The company approached ATI to provide Excess of Loss Treaty reinsurance cover for Political Violence, Civil Disturbance and Sabotage & Terrorism to enable it to offer its retail and commercial customers protection against these risks, as an addition to their normal motor and property insurances. This partnership with the local insurer, supported by reinsurance from Lloyd's of London, underscores ATI's flexibility and ability to provide risk solutions in response to changing times.

Country:
Sector:
Agriculture
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Exports of Fresh Produce
Maximum Sum Insured:
$55,000

A Kenyan agri foods exporter obtained ATI’s insurance to protect against non-payment of their United Kingdom-based buyers. 

The agriculture industry is Kenya’s top foreign exchange earner, replacing the recession-impacted sectors of tourism and remittances. The global economic downturn has impacted negatively on this sector as exporters face increasing risks of non-payment by their foreign buyers due to a drop-off in global demand and an increasing level of insolvencies. This project supports the survival of a vital sector that contributes 60% of the country’s total earnings and employs 75% of the population.

Country:
Sector:
Agriculture
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Packaging and Export of Fresh Produce
Maximum Sum Insured:
$60,000

A Kenyan agri foods exporter obtained ATI’s insurance to protect against non-payment of their buyers in the United Kingdom and Switzerland. The company procures its produce from small-scale farmers in the country’s rural regions, contributing to a source of employment and income for millions of Kenyans who derive their living from the agricultural sector.

Country:
Sector:
Agriculture
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Exports of Fresh Produce
Maximum Sum Insured:
$50,000

A Kenyan agri foods exporter specialising in exports of premium fresh quality produce to European markets obtained ATI’s insurance to protect against non-payment of their buyers in the United Kingdom and France

Country:
Sector:
Infrastructure
Insurance Type:
Political Risk Insurance
Risks Covered:
Payment default by a sovereign obligor
Project:
Water Supply Infrastructure
Maximum Sum Insured:
$2.8 million

A leading African construction and engineering company obtained ATI insurance cover to protect against non-payment by a government agency for the full contract period. The government agency, a local water services board, contracted the company to construct water supply infrastructure in the Western region.  The project provides a boost to the government’s Millennium Development Goal of halving the number of people who do not have access to safe drinking water by 2015. To reach the target of 80% access, the government is financing projects like this in underserved populations in various parts of the country.

Country:
Sector:
Manufacturing
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Supply of Manufactured Carpets
Maximum Sum Insured:
$135,000

After receiving an order for custom made carpets from a leading operator in the Kenyan tourism sector, a South African carpet manufacturer purchased ATI’s insurance to protect against non-payment.

This project supports the recovery of Kenya’s tourism industry which saw a near 35% reduction in tourism following the 2007 post-election violence. With a country-branding and tourism initiative in place, Kenya is set to hit its 2012 targets to attract three million visitors (one million above its record-breaking pre-crisis levels) and raising tourism earnings to $2.6 billion annually.

Country:
Sector:
Telecommunications (ICT)
Insurance Type:
Comprehensive Non payment Insurance
Risks Covered:
Transfer restriction, expropriation, war & civil disturbance, embargo, insolvency and payment delay
Project:
Supply and Installation of Telecommunication Equipment
Maximum Sum Insured:
$2.1 million

This transaction falls under a Supply Agreement between two global companies, one a manufacturer of telecommunications equipment while the other provides mobile telephone services. ATI is insuring receivables from the supply and installation of network connectivity equipment and related accessories in several African countries. 

The Democratic Republic of Congo, Kenya and Tanzania account for more than half of the mobile telephone market in the East and Central African region, among the fastest growing regions on the continent. The number of subscribers in Kenya is projected to grow by 87% in the next five years, ensuring that Kenya remains an attractive market for investors.

Country:
Sector:
Telecommunications (ICT)
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Supply and Installation of Renewable Energy Equipment
Maximum Sum Insured:
$576,000

A Kenyan company providing innovative clean energy solutions to mobile phone operators in East and Central Africa obtained ATI cover to protect against the failure by a local telecommunications company to pay for goods received on credit due to insolvency or persistent non-payment (protracted default).   

The technology supports the mobile network company’s expansion into areas not serviced by the national electricity grid. With one of the fastest growing mobile phone markets in Africa, this project benefits Kenya’s rural communities, who will have increased access to a vital source of communication. The country will also benefit by reducing reliance on an environmentally unfriendly source of diesel power.

Country:
Sector:
Construction
Insurance Type:
Political Risk Insurance
Risks Covered:
Embargo; expropriation; damage or business interruption due to war and civil disturbance; arbitral award default and currency transfer restriction
Project:
Residential housing
Maximum Sum Insured:
$6.6 million

In Kenya, there is a housing demand of 150,000 units per year. In an effort to produce more housing, the government agency charged with housing development set a target of 30,000 houses to be constructed by 2013.

As one of the projects in this scheme, 105 residential apartments in a Nairobi suburb, was awarded to a contractor with an international financial backer. The lender purchased ATI’s Political Risk Insurance to alleviate potential risks that may impact on the project, which is targeted for completion in 2010.

Country:
Sector:
Infrastructure
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-payment by a government agency
Project:
Improvements to a regional water treatment plant and dam
Maximum Sum Insured:
$6.5 million

When a Kenyan construction firm won a government bid to improve a water treatment plant and dam that supplies 20% of Nairobi’s water, they took a moment to savour the victory. And then, they sought insurance protection against the possible risk of non-payment or protracted delays in payment by the regional water services board.

With the cover in place, the company could proceed with confidence. They also had the added satisfaction of working on a project that would eventually save the city an estimated $130,000 a year through unclogging water intakes and water purification.

Country:
Sector:
Manufacturing
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-payment by a government agency
Project:
Delivery of pharmaceutical drugs and medical supplies to a government agency
Maximum Sum Insured:
$4.8 million

A Kenyan manufacturer of pharmaceuticals relating to malaria and HIV/AIDS won a tender to distribute medical supplies to a government agency responsible for procurement, warehousing and distribution of medical supplies. The agency is tasked with delivering up to 45% of the drugs and health equipment to public health facilities across Kenya.

Before signing the contract, the manufacturer obtained ATI’s insurance to protect them against non-payment. ATI’s strong relationships with the Kenyan government, which is also a shareholder in ATI, offers clients added comfort against the government’s defaulting on contractual obligations.

Country:
Sector:
Telecommunications (ICT)
Insurance Type:
Comprehensive Non-payment Insurance
Risks Covered:
Payment delay; non-payment due to insolvency; currency transfer restriction; expropriation; embargo; and physical damage or business interruption caused by war and civil disturbance
Project:
Supply of digital microwave radio equipment to a mobile telephone network
Maximum Sum Insured:
$538,500

In line with its growth strategy, this nation-wide telecommunications company solicited bids from manufacturers to upgrade Kenya’s transmission capacity in the Western region. A global manufacturer of telecommunications equipment won the bid and sought ATI’s insurance to protect the entire contract against non-payment.

The partnership with ATI and this client extends to insurance cover on similar deals in Malawi, Uganda and Zambia.

Country:
Sector:
Energy
Insurance Type:
Single Obligor Trade Credit Insurance
Risks Covered:
Non-payment due to insolvency, and delayed payment (protracted default)
Project:
Supply of treated wooden poles for electricity transmission
Maximum Sum Insured:
$511,000

A Kenyan trading company hired to supply treated wooden poles for a rural electricity transmission project in Uganda sought ATI insurance against non-payment. Leveraging on ATI’s insurance cover the Kenyan company was able to successfully supply poles to the engineering firm tasked with implementing the project. This deal supports Uganda’s rural electrification programme, which is expected to significantly raise the low rate of electricity penetration, particularly in the rural areas from the current level of just 10%.

Country:
Sector:
Infrastructure
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-payment by a sovereign obligor (a government buyer)
Project:
Supply of road construction equipment
Maximum Sum Insured:
$363,000

An international trading company based in China won a bid to supply road construction equipment to the government agency responsible for road construction and maintenance. The company’s bank requested them to obtain insurance to mitigate against non-payment risks while sourcing and purchasing the equipment. The project supports Kenya’s vibrant infrastructure strategy that will help reduce the cost for companies to move goods within the country.  This commitment by the Kenyan government is supported by a 20% budget increase on infrastructure development with $1 billion to be spent on improving road networks alone in 2011. 

Country:
Sector:
Infrastructure
Insurance Type:
Non-payment by a sovereign obligor (a government buyer)
Risks Covered:
Political Risk Insurance
Project:
Road Reconstruction
Maximum Sum Insured:
$11 million

This project, the reconstruction of a road connecting rural regions to Kenya’s capital Nairobi, provides two noteworthy benefits: First, it resonates with the state’s objective of supporting domestic Small and Medium sized companies through the award of government contracts. Second, the road will give farmers easy and speedy access to key markets within the city by facilitating movement of produce from the farms. With recent studies indicating that over 70% of African farmers’ losses occur post-harvest, a reliable road system goes a long way to enhance the productivity of the agricultural sector on the continent. ATI supported the contractor by guaranteeing compensation if the government agency failed to pay for services rendered.

Country:
Sector:
Construction
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-payment of invoices and certificates by Government of Kenya
Project:
Construction of Government buildings
Maximum Sum Insured:
$631,500

This project supports the government’s drive to accelerate infrastructure projects and strengthen public services and support local firms in a bid to increase capacity. To complete the works, the government contracted a Kenyan firm with a successful track record in the region on infrastructure and engineering projects within the public and private sectors. To secure payment, the contractor turned to ATI for insurance against non-payment risks by the government. This project reflects ATI’s growing reputation as a trusted partner by firms entering into contracts with governments in the region.

Country:
Sector:
Infrastructure
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-compliance of contractual obligations
Project:
Port maintenance and expansion
Maximum Sum Insured:
$10 million

Kenya is home to one of the busiest ports in Africa. Increasing traffic has led to congestion and deterioration of its infrastructure. In response, the government plans to increase the port’s capacity from its current 0.25 million Twenty-Foot Equivalent Units (TEUs) to 1.2 million. This will enable it to accommodate larger shipping vessels, growing business from regional economies and trans-shipment business from global shipping lines. The government selected a well-known Dutch marine contractor to implement the project. ATI is providing the contractor with political risk insurance against the risk of the government not following through on its contractual obligations.

Country:
Sector:
Services
Insurance Type:
Whole Turnover Credit Risk Insurance
Risks Covered:
Insolvency and Protracted Default
Project:
Freight Forwarding by Air and Sea
Maximum Sum Insured:
$5 million

The services sector in Kenya continues to be one of the key contributors to economic growth impacting on nearly every sector of the economy. Under this transaction.

ATI insured a freight forwarder who sought protection against non-payment by their overseas and local customers. The company services a large number of clients in the floriculture sector – a vital sector that contributes 28% of Kenya’s total exports to Europe.

Country:
Sector:
Energy
Insurance Type:
Single Obligor Trade Credit Insurance
Risks Covered:
Insolvency and Protracted default
Project:
Wholesaling of Petroleum products
Maximum Sum Insured:
$361,000

The Kenyan company is engaged in the sale of petroleum products to selected clients on credit terms and wished to discount these invoices with a Commercial Bank. Besides offering protection to the Kenyan company for its receivables, the ATI cover made the transaction attractive to the bank.

Country:
Sector:
Energy
Insurance Type:
Political Risk Insurance for Equity
Project:
Geothermal Power Plant
Maximum Sum Insured:
$5 million

Power shortages and lack of supply to meet demand has hampered Kenya's economic growth. A mere 15% of the population has access to electricity, and there are numerous blackouts and long waiting lists for connection. The geothermal power plant is designed to relieve severe power shortages, decrease the country's dependency on energy imports and thermal energy and to reduce green house gas emissions. The plant, with a combined capacity of 48 MW, uses environmentally-friendly geothermal energy to generate electricity rather than the less green hydrocarbons, producing low to nearly no green house gas emissions.

ATI provided reinsurance to the Multilateral Investment Guarantee Agency, a member of the World Bank Group, to help protect the investor against the risks of Currency Transfer Restrictions, Expropriation and War and Civil Disturbance.

Country:
Sector:
Manufacturing
Insurance Type:
Whole Turnover Credit Risk Insurance
Project:
Chemical Exports
Maximum Sum Insured:
$2.1 million

Many regional companies can suddenly see their business grow and evolve to levels that require additional funding. This is the case with a Kenyan company, which imports, markets and distributes chemicals on behalf of a number of global companies. The companys business model in the industrial chemicals segment has evolved to where they need to sell directly to their end-customers in Kenya, Mozambique, Tanzania and Uganda. To cover these buyers in East Africa, the company obtained a $5 million trade finance facility from a regional bank. ATI supported the deal by supplying $2.1 million worth of Credit Risk Insurance.

Insurance Type:
Sovereign Buyer Non-payment Cover
Project:
Hospital Rehabilitation
Maximum Sum Insured:
$642,000

One of the largest hospitals in Kenya needed to expand its intensive care services to accommodate demand. To complete the expansion, the hospital required a new Intensive Care Unit. A major European based electronics company supplied the necessary equipment and ATI provided insurance coverage against the risk of non-payment for the contracted purchase price.

Country:
Sector:
Infrastructure
Insurance Type:
Construction Contract Post Performance Sovereign Buyer
Project:
Road Reconstruction
Maximum Sum Insured:
$1.3 million
In the early 1990s, Kenyas economy contracted sharply. This led to very little construction and maintenance to the roads network. By 1993, the dedicated Fuel Levy Fund helped to stem the deterioration.

The Kenya Roads Board attributes constraints to Kenyas economic and social development to the poor state of road infrastructure. To improve the road networks, the Ministry of Roads and Public Works implemented a plan to rehabilitate at least 60 major and minor roads in Kenya. This road reconstruction project, falls within the scope of the governments plan.

The road runs through the heart of the tea producing area of Kenya and will help improve the transport to market of one of Kenyas biggest exports. A local company with experience in civil infrastructure construction won the government bid. Before starting construction on the 47.6 km road, the company requested insurance to protect against Non-honouring of Sovereign Obligations. ATI issued cover for the full project amount and the project was able to proceed.


Country:
Sector:
Agriculture
Insurance Type:
Whole Turnover Credit Risk Insurance
Project:
Flower Exports
Maximum Sum Insured:
$490,000

A major flower producer has been growing and exporting T-Hybrid roses for the past 10 years. Their hydroponically grown roses are environmentally safe using liquid fertilization that is fully recycled and absent any hazardous nitrates or phosphorous. Since 1996, the company has expanded its operations and exports to buyers in some 13 countries located in Europe, the Middle East and Asia.

The company took out its first policy with ATI in 2004 to protect its sales against the risk of buyer payment default. In 2007, ATI paid a claim arising from the payment default by one of its buyers. Confident with the protection it was receiving, the company renewed its cover with ATI for a fourth time.

Country:
Sector:
Telecommunications (ICT)
Insurance Type:
Sovereign Buyer Non-payment Cover
Project:
Telecommunications
Maximum Sum Insured:
$10.6 million

This project, which involves laying down fibre optic cable, is central to the Kenyan government's plans to revamp its telecommunication sector. The cable will cover the Central, Western, Coast and North Eastern provinces, totaling 5,000 km.

Fibre optics is a medium for carrying information from one point to another in the form of light and it is much cheaper than the traditional copper form of transmission.

Rapid development of the country's fibre optic network will help it achieve middle income status, as laid out in the government's Economic Blueprint, Vision 2030. Under the plan, Kenya will rival countries like India in the business process outsourcing sector.

A fibre optic cable will increase internet and data connectivity, bring down telecommunications costs and make it easier for companies to compete on the international market. It will also give access to e-learning opportunities to people in the remotest areas of the country, who might not otherwise have received any training.

The government contracted a global communications company based in France and specializing in broadband communications and convergence activities. The company was contracted to deliver, install, commission, test and provide long term technical support to the project. To cover their investment, ATI provided Payment Default by a Sovereign Obligor insurance to the company and the project is now well underway, with completion expected by the end of 2009.

Insurance Type:
Political Violence Excess of Loss Reinsurance
Project:
Reinsurance Cover for Political Violence, Civil Disturbance, Sabotage & Terrorism
Maximum Sum Insured:
$14.9 million

In early 2008, political and civil disturbance in Kenya and the widespread fears of economic instability led to some creative thinking by the private insurance sector. One of the leading local companies has been providing all forms of general insurance to Kenyans for more than 70 years.

The company approached ATI to provide Excess of Loss Treaty reinsurance cover for Political Violence, Civil Disturbance and Sabotage & Terrorism to enable it to offer its retail and commercial customers protection against these risks, as an addition to their normal motor and property insurances. This partnership with the local insurer, supported by reinsurance from Lloyd's of London, underscores ATI's flexibility and ability to provide risk solutions in response to changing times.

Country:
Sector:
Agriculture
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Exports of Fresh Produce
Maximum Sum Insured:
$55,000

A Kenyan agri foods exporter obtained ATI’s insurance to protect against non-payment of their United Kingdom-based buyers. 

The agriculture industry is Kenya’s top foreign exchange earner, replacing the recession-impacted sectors of tourism and remittances. The global economic downturn has impacted negatively on this sector as exporters face increasing risks of non-payment by their foreign buyers due to a drop-off in global demand and an increasing level of insolvencies. This project supports the survival of a vital sector that contributes 60% of the country’s total earnings and employs 75% of the population.

Country:
Sector:
Agriculture
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Packaging and Export of Fresh Produce
Maximum Sum Insured:
$60,000

A Kenyan agri foods exporter obtained ATI’s insurance to protect against non-payment of their buyers in the United Kingdom and Switzerland. The company procures its produce from small-scale farmers in the country’s rural regions, contributing to a source of employment and income for millions of Kenyans who derive their living from the agricultural sector.

Country:
Sector:
Agriculture
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Exports of Fresh Produce
Maximum Sum Insured:
$50,000

A Kenyan agri foods exporter specialising in exports of premium fresh quality produce to European markets obtained ATI’s insurance to protect against non-payment of their buyers in the United Kingdom and France

Country:
Sector:
Infrastructure
Insurance Type:
Political Risk Insurance
Risks Covered:
Payment default by a sovereign obligor
Project:
Water Supply Infrastructure
Maximum Sum Insured:
$2.8 million

A leading African construction and engineering company obtained ATI insurance cover to protect against non-payment by a government agency for the full contract period. The government agency, a local water services board, contracted the company to construct water supply infrastructure in the Western region.  The project provides a boost to the government’s Millennium Development Goal of halving the number of people who do not have access to safe drinking water by 2015. To reach the target of 80% access, the government is financing projects like this in underserved populations in various parts of the country.

Country:
Sector:
Manufacturing
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Supply of Manufactured Carpets
Maximum Sum Insured:
$135,000

After receiving an order for custom made carpets from a leading operator in the Kenyan tourism sector, a South African carpet manufacturer purchased ATI’s insurance to protect against non-payment.

This project supports the recovery of Kenya’s tourism industry which saw a near 35% reduction in tourism following the 2007 post-election violence. With a country-branding and tourism initiative in place, Kenya is set to hit its 2012 targets to attract three million visitors (one million above its record-breaking pre-crisis levels) and raising tourism earnings to $2.6 billion annually.

Country:
Sector:
Telecommunications (ICT)
Insurance Type:
Comprehensive Non payment Insurance
Risks Covered:
Transfer restriction, expropriation, war & civil disturbance, embargo, insolvency and payment delay
Project:
Supply and Installation of Telecommunication Equipment
Maximum Sum Insured:
$2.1 million

This transaction falls under a Supply Agreement between two global companies, one a manufacturer of telecommunications equipment while the other provides mobile telephone services. ATI is insuring receivables from the supply and installation of network connectivity equipment and related accessories in several African countries. 

The Democratic Republic of Congo, Kenya and Tanzania account for more than half of the mobile telephone market in the East and Central African region, among the fastest growing regions on the continent. The number of subscribers in Kenya is projected to grow by 87% in the next five years, ensuring that Kenya remains an attractive market for investors.

Country:
Sector:
Telecommunications (ICT)
Insurance Type:
Credit Risk Insurance
Risks Covered:
Insolvency and protracted default
Project:
Supply and Installation of Renewable Energy Equipment
Maximum Sum Insured:
$576,000

A Kenyan company providing innovative clean energy solutions to mobile phone operators in East and Central Africa obtained ATI cover to protect against the failure by a local telecommunications company to pay for goods received on credit due to insolvency or persistent non-payment (protracted default).   

The technology supports the mobile network company’s expansion into areas not serviced by the national electricity grid. With one of the fastest growing mobile phone markets in Africa, this project benefits Kenya’s rural communities, who will have increased access to a vital source of communication. The country will also benefit by reducing reliance on an environmentally unfriendly source of diesel power.

Country:
Sector:
Construction
Insurance Type:
Political Risk Insurance
Risks Covered:
Embargo; expropriation; damage or business interruption due to war and civil disturbance; arbitral award default and currency transfer restriction
Project:
Residential housing
Maximum Sum Insured:
$6.6 million

In Kenya, there is a housing demand of 150,000 units per year. In an effort to produce more housing, the government agency charged with housing development set a target of 30,000 houses to be constructed by 2013.

As one of the projects in this scheme, 105 residential apartments in a Nairobi suburb, was awarded to a contractor with an international financial backer. The lender purchased ATI’s Political Risk Insurance to alleviate potential risks that may impact on the project, which is targeted for completion in 2010.

Country:
Sector:
Infrastructure
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-payment by a government agency
Project:
Improvements to a regional water treatment plant and dam
Maximum Sum Insured:
$6.5 million

When a Kenyan construction firm won a government bid to improve a water treatment plant and dam that supplies 20% of Nairobi’s water, they took a moment to savour the victory. And then, they sought insurance protection against the possible risk of non-payment or protracted delays in payment by the regional water services board.

With the cover in place, the company could proceed with confidence. They also had the added satisfaction of working on a project that would eventually save the city an estimated $130,000 a year through unclogging water intakes and water purification.

Country:
Sector:
Manufacturing
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-payment by a government agency
Project:
Delivery of pharmaceutical drugs and medical supplies to a government agency
Maximum Sum Insured:
$4.8 million

A Kenyan manufacturer of pharmaceuticals relating to malaria and HIV/AIDS won a tender to distribute medical supplies to a government agency responsible for procurement, warehousing and distribution of medical supplies. The agency is tasked with delivering up to 45% of the drugs and health equipment to public health facilities across Kenya.

Before signing the contract, the manufacturer obtained ATI’s insurance to protect them against non-payment. ATI’s strong relationships with the Kenyan government, which is also a shareholder in ATI, offers clients added comfort against the government’s defaulting on contractual obligations.

Country:
Sector:
Telecommunications (ICT)
Insurance Type:
Comprehensive Non-payment Insurance
Risks Covered:
Payment delay; non-payment due to insolvency; currency transfer restriction; expropriation; embargo; and physical damage or business interruption caused by war and civil disturbance
Project:
Supply of digital microwave radio equipment to a mobile telephone network
Maximum Sum Insured:
$538,500

In line with its growth strategy, this nation-wide telecommunications company solicited bids from manufacturers to upgrade Kenya’s transmission capacity in the Western region. A global manufacturer of telecommunications equipment won the bid and sought ATI’s insurance to protect the entire contract against non-payment.

The partnership with ATI and this client extends to insurance cover on similar deals in Malawi, Uganda and Zambia.

Country:
Sector:
Energy
Insurance Type:
Single Obligor Trade Credit Insurance
Risks Covered:
Non-payment due to insolvency, and delayed payment (protracted default)
Project:
Supply of treated wooden poles for electricity transmission
Maximum Sum Insured:
$511,000

A Kenyan trading company hired to supply treated wooden poles for a rural electricity transmission project in Uganda sought ATI insurance against non-payment. Leveraging on ATI’s insurance cover the Kenyan company was able to successfully supply poles to the engineering firm tasked with implementing the project. This deal supports Uganda’s rural electrification programme, which is expected to significantly raise the low rate of electricity penetration, particularly in the rural areas from the current level of just 10%.

Country:
Sector:
Infrastructure
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-payment by a sovereign obligor (a government buyer)
Project:
Supply of road construction equipment
Maximum Sum Insured:
$363,000

An international trading company based in China won a bid to supply road construction equipment to the government agency responsible for road construction and maintenance. The company’s bank requested them to obtain insurance to mitigate against non-payment risks while sourcing and purchasing the equipment. The project supports Kenya’s vibrant infrastructure strategy that will help reduce the cost for companies to move goods within the country.  This commitment by the Kenyan government is supported by a 20% budget increase on infrastructure development with $1 billion to be spent on improving road networks alone in 2011. 

Country:
Sector:
Infrastructure
Insurance Type:
Non-payment by a sovereign obligor (a government buyer)
Risks Covered:
Political Risk Insurance
Project:
Road Reconstruction
Maximum Sum Insured:
$11 million

This project, the reconstruction of a road connecting rural regions to Kenya’s capital Nairobi, provides two noteworthy benefits: First, it resonates with the state’s objective of supporting domestic Small and Medium sized companies through the award of government contracts. Second, the road will give farmers easy and speedy access to key markets within the city by facilitating movement of produce from the farms. With recent studies indicating that over 70% of African farmers’ losses occur post-harvest, a reliable road system goes a long way to enhance the productivity of the agricultural sector on the continent. ATI supported the contractor by guaranteeing compensation if the government agency failed to pay for services rendered.

Country:
Sector:
Construction
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-payment of invoices and certificates by Government of Kenya
Project:
Construction of Government buildings
Maximum Sum Insured:
$631,500

This project supports the government’s drive to accelerate infrastructure projects and strengthen public services and support local firms in a bid to increase capacity. To complete the works, the government contracted a Kenyan firm with a successful track record in the region on infrastructure and engineering projects within the public and private sectors. To secure payment, the contractor turned to ATI for insurance against non-payment risks by the government. This project reflects ATI’s growing reputation as a trusted partner by firms entering into contracts with governments in the region.

Country:
Sector:
Infrastructure
Insurance Type:
Political Risk Insurance
Risks Covered:
Non-compliance of contractual obligations
Project:
Port maintenance and expansion
Maximum Sum Insured:
$10 million

Kenya is home to one of the busiest ports in Africa. Increasing traffic has led to congestion and deterioration of its infrastructure. In response, the government plans to increase the port’s capacity from its current 0.25 million Twenty-Foot Equivalent Units (TEUs) to 1.2 million. This will enable it to accommodate larger shipping vessels, growing business from regional economies and trans-shipment business from global shipping lines. The government selected a well-known Dutch marine contractor to implement the project. ATI is providing the contractor with political risk insurance against the risk of the government not following through on its contractual obligations.

Country:
Sector:
Services
Insurance Type:
Whole Turnover Credit Risk Insurance
Risks Covered:
Insolvency and Protracted Default
Project:
Freight Forwarding by Air and Sea
Maximum Sum Insured:
$5 million

The services sector in Kenya continues to be one of the key contributors to economic growth impacting on nearly every sector of the economy. Under this transaction.

ATI insured a freight forwarder who sought protection against non-payment by their overseas and local customers. The company services a large number of clients in the floriculture sector – a vital sector that contributes 28% of Kenya’s total exports to Europe.

Country:
Sector:
Energy
Insurance Type:
Single Obligor Trade Credit Insurance
Risks Covered:
Insolvency and Protracted default
Project:
Wholesaling of Petroleum products
Maximum Sum Insured:
$361,000

The Kenyan company is engaged in the sale of petroleum products to selected clients on credit terms and wished to discount these invoices with a Commercial Bank. Besides offering protection to the Kenyan company for its receivables, the ATI cover made the transaction attractive to the bank.