Examples of insured projects include: private power generation, mining, petroleum, telecommunications, commercial bank, oil and gas processing equipment, construction, food processing, equipment leasing, etc.
Since 1971, OPIC, a self-sustaining agency, has supported more than $164 billion in U.S. investment overseas that will generate $69 billion in U.S. exports and support more than 264,000 American jobs. Additionally, OPIC has benefited the more than 150 countries in which it has operated or is currently operating, supporting sustainable development and international trade while solidifying free markets.
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.
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.
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.
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.
Aplication and Award Process
This program is excluded from coverage under E.O.
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.
Insurance is issued directly to the applicant by OPIC, or through a broker if the investor so chooses.
Registration must be made prior to making an irrevocable commitment to invest. The registration remains active at OPIC for 2 years.
Foreign Assistance Act of 1969, Title IV, Section 234(a), Public Law 91-175, 22 U.S.C. 2191, et seq.
Range of Approval/Disapproval Time
Will vary depending on size and complexity of project.
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.
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
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.
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.
(Insurance Issued) (Aggregate Maximum Insured Amount) FY 07 $1,200,000,000; FY 08 est not available; and FY 09 est not reported.
Range and Average of Financial Assistance
Up to $250,000,000; $12,244,695.
Regulations, Guidelines, and Literature
"OPIC Program Handbook," free.
Regional or Local 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: firstname.lastname@example.org .
Criteria for Selecting Proposals
See USES AND USE RESTRICTIONS and ELIGIBILITY REQUIREMENTS.
Greenchar, a social enterprise led by Tom Osborn, provides eco-friendly, smokeless, high energy and quality charcoal briquettes and clean cook stoves that allow individuals to save time, money and energy. Greenchar is an alternative energy source to charcoal and firewood used for cooking.