To insure investments of eligible U.S. investors in
developing countries and emerging markets, against the political risks of
inconvertibility, expropriation, and political violence. Special programs
include insuring (l)contractors and exporters against arbitrary drawings of
letters of credit posted as bid, performance or advance payment guaranties,
(2)petroleum exploration, development and production (3)leasing operations,
and (4) debt financials, including securities.
TYPES OF ASSISTANCE:
Insurance. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
To encourage private U.S. investment in developing countries and emerging
economies by protecting against certain political risks. Investments may be
eligible for insurance if they benefit the social and economic development of
the host country. OPIC will not support projects that could result in the loss
of U.S. jobs, adversely affect the U.S. economy, have a negative impact on the
host country's development or environment, or contribute to violations of
internationally recognized worker rights.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Citizen of the United States;
a corporation, partnership, or other association created under the laws of the
United States or any State or territory, of which more than 50 percent is
beneficially owned by U.S. citizens; a foreign corporation at least 95 percent
owned by such entities; or any other 100 percent U.S.-owned foreign entity.
Beneficiary Eligibility: OPIC does not support
projects that will result in the loss of U.S. jobs, that have a negative
impact on the host country's economy or environment, or contribute to
violations of internationally recognized worker rights. OPIC only supports
projects that contribute to the economic and social development of the host
country.
Credentials/Documentation: A bilateral agreement
between the United States and the host country government must be in place
before OPIC can provide insurance for a given country. Additionally, special
project approval by the foreign government is required in some countries
before insurance can be provided.
Pre-application Coordination: Registration letter.
This program is excluded from coverage under E.O. 12372.
Application Procedure: The insurance program has
a two-step application process. Investors must first register their projects
with OPIC before making an irrevocable commitment to invest. Once the details
of the investment have been established, an application for insurance coverage
is filed. OPIC charges a retainer fee after the submission of an application
for insurance in order to proceed with review of the project. Registration and
application forms are available on request from the Insurance Applications
Officer, Overseas Private Investment Corporation, 1100 New York Avenue, NW.,
Washington, DC 20527, or on OPIC's website: www.opic.gov.
Award Procedure: Insurance is issued directly to
the applicant by OPIC, or through a broker if the investor so chooses.
Deadlines: Registration must be made prior to
making an irrevocable commitment to invest. The registration remains active at
OPIC for 2 years.
Range of Approval/Disapproval Time: Will vary
depending on size and complexity of project.
Appeals: Not applicable.
Renewals: OPIC insurance contracts can be offered
at fixed rates for up to 20 years. Investor has the opportunity to change
insurance elections annually or semi-annually. Policies are non-cancelable by
OPIC, provided that investor is paying premiums and is not in material breach
of the contract.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: Not applicable.
In most cases, insured must retain at least 10 percent of the risk as self-
insurance.
Length and Time Phasing of Assistance: Maximum
insurance term is 20 years for equity investment; for loans, the term of the
loan; for contracts, the term of the contract.
POST ASSISTANCE REQUIREMENTS:
Reports: Annual or semi-annual election of current
coverage, annual or semi-annual payment of premiums, and such information as
may be requested by OPIC to monitor the project or to make a determination in
the case of a claim for compensation.
Audits: Not applicable.
Records: When claim for compensation is pending
and after such payment is made, the investor has a duty to cooperate with OPIC
in supplying all information requested pertaining to the claim. These
responsibilities are clearly spelled out in each insurance contract.
FINANCIAL INFORMATION:
Account Identification: 71-4184-0-3-151.
Obligations: (Insurance Issued) (Aggregate
Maximum Insured Amount) FY 01 $2,202,000,000; FY 02 est $1,065,000,000; and FY
03 est $2,200,000,000.
Range and Average of Financial Assistance: $67,500 to $200,000,000.
Over the past 30 years, OPIC, a self-sustaining agency, has supported more
than $142 billion in U.S. investment overseas that will generate $64 billion
in U.S. exports and create more than 253,000 American jobs. In 2001, OPIC had
a net income of $215 million. Additionally, OPIC has benefited the 140
countries in which it has operated or is currently operating, supporting
sustained development and international trade while solidifying free markets.
Projects insured or financed in 2001 alone are expected to create nearly 5,562
direct jobs in developing and emerging markets, while generating $200 million
in host government revenues.
REGULATIONS, GUIDELINES, AND LITERATURE:
"OPIC Program Handbook," free.
INFORMATION CONTACTS:
Regional or Local Office: (1) Peter Ballinger,
Caspian Finance Center, American Embassy, 110 Attaturk Bulvari, 06100
Karaklidese, Ankara, Turkey - Phone: 90-312-468-6110 Fax: 90-312-466- 6082 (2)
John Moran, Zabreb Regional Office, American Embassy, The Commercial Service,
Andrije Hebrangaz, 10000, Zagreb, Croatia - Phone: 385-1-461-0777 Fax:
385-1-455-3126.
Headquarters Office: Information Officer,
Overseas Private Investment Corporation, 1100 New York Ave., NW., Washington,
DC 20527. Telephone: (202) 336-8799. For program information by electronic
mail: OPIC@opic.gov.
Web Site Address: http://www.opic.gov
EXAMPLES OF FUNDED PROJECTS:
Examples of insured projects include: private power
generation, mining, petroleum, telecommunications, commercial bank, oil and
gas processing equipment, construction, food processing, equipment leasing,
etc.
CRITERIA FOR SELECTING PROPOSALS:
See USES AND USE RESTRICTIONS and ELIGIBILITY
REQUIREMENTS.
