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Press Release

Wednesday, July 21, 2004

OPIC Insurance Supports Power Project in Gaza

WASHINGTON, D.C. – Political risk insurance from the Overseas Private Investment Corporation (OPIC) will enable a U.S. company to help operate a power plant in the Gaza Strip, the first such plant under the regulatory control of the Palestinian Energy Authority (PEA), OPIC President and CEO Dr. Peter Watson announced today.

Because Israel, the West Bank and Gaza Strip are connected to a single electricity grid, the additional power capacity generated by the project will also benefit Israel, by freeing up generation capacity to meet growing demand in that country.

OPIC will provide $48 million in insurance to a subsidiary of Morganti Group, Inc., a Connecticut-based construction company, to help operate a 140 megawatt power plant in the Gaza Strip, the output of which will be sold to the PEA, the authorized utility in the West Bank and Gaza Strip. The plant began generating power in single cycle in June 2002, and reached full commercial operation in March 2004.

Dr. Watson said the project was also an important component in the development of water infrastructure in Gaza; the capacity generated by the project will help meet a critical need to develop new water resources to replace limited groundwater supplies.

“Full commissioning of this plant benefits people in the Gaza Strip by reducing dependence on imported power, and is an integral part of establishing regional linkages in electricity, water and natural gas infrastructure in the region,” Dr. Watson said.


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.