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Press Release

Monday, April 23, 2007

Lease Agreement Signed on $60 Million OPIC Hotel Project in Afghanistan

KABUL, Afghanistan – A lease agreement between the government of Afghanistan and U.S. investors financed by the Overseas Private Investment Corporation (OPIC) in a landmark hotel project was executed today, OPIC President & CEO Robert Mosbacher, Jr., announced. The signing took place on the last day of Mosbacher’s most recent visit to Afghanistan to promote private sector investment in the country. Present at the ceremony was Minister of Commerce and Industry and Chairman of the High Commission on Investment, Dr. Mir Mohammad Amin Farhang.

OPIC’s board of directors approved $60 million in financing for construction of a 209-room, five-star hotel in Afghanistan in January 2007. The project will provide accommodation for foreign investors, an important boost to reconstruction efforts in the country, and a gateway for returning Afghan citizens who have spent time outside of their homeland.

General Systems International (GSI), a Delaware-based company, will build the hotel on a major road in Kabul, with easy access to the city’s airport and to major embassies and government offices. The hotel will provide a full range of facilities and services, including a communications and business center, seminar and meeting facilities. Once completed, it will be managed by Marriott International.

The project is expected to generate several million dollars annually in foreign exchange, as well as 270 permanent jobs for local Afghans, and Marriott will implement a training program for all hotel employees. Afghan suppliers will provide materials, equipment, supplies and services for the project. GSI expects to maximize use of Afghan expertise in construction management, architecture and specialty construction. The company sees the project as the first step of its involvement in helping the Afghan people rebuild their country.

“Today’s signing represents tangible progress in advancing this important hotel project, as well as our broader, continued commitment to Afghan reconstruction and renewal,” said OPIC President and CEO Robert Mosbacher, Jr.

U.S. Ambassador to Afghanistan William B. Wood described the Marriott project as a flagship investment. “This new, major American hotel will be a visible expression of confidence in the future of Afghanistan and the readiness of Afghanistan to promote and cooperate with private investment. Things are looking up,” said Wood.


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.