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Press Release

Monday, October 18, 2004

U.S. Small Business Uses OPIC Loan to Provide Fixed Wireless Service in Brazil

WASHINGTON, D.C - A U.S. small business will use a loan from the Overseas Private Investment Corporation (OPIC) to provide fixed wireless service at affordable rates to small cities in northeastern Brazil, OPIC President and CEO Dr. Peter Watson announced today.

OPIC will provide a $3.4 million loan to Ruralfone, Inc., a company majority-owned by U.S. citizens, for the installation and operation of a fixed wireless telecom system in small cities in northeastern Brazil. The company will initially serve customers in Ceará state, with additional service planned for customers in Pernambuco, Maranhão, Alagoas, and the north of Bahia. Ruralfone’s fixed wireless service will provide an attractive alternative to customers across various segments of the market by virtue of its lower cost, service range, and localized customer service.

“Increased access to wireless service for low-income residents in northeastern Brazil will provide many social benefits, and will likely generate additional economic activity in the region,” Dr. Watson said. “OPIC is pleased to work with a U.S. small business on such a valuable project.”

“I am very pleased to have OPIC as a partner for our project in Brazil,” said Denis Côté, President and CEO of Ruralfone, Inc. “Such a strong partner will help Ruralfone to attain its vision of becoming a major telecommunication player in remote communities; not only in Brazil, but also in other countries. Our innovative concept in Brazil will position us to replicate our experience in other countries.”

Dr. Watson noted that the project helped to fulfill OPIC’s October 2003 commitment to support information technology (IT) projects in Brazil, through the establishment of a $150 million support facility to promote IT partnerships between the U.S. private sector and Brazil.


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.