Press Release
Wednesday, March 5, 2008
OPIC SUPPORTS RENEWABLE ENERGY INVESTMENT FUND FOR EMERGING MARKETS
WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) has announced a call for proposals that will result in up to $500 million in financing to new private equity investment funds designed to invest in companies or projects in the renewable energy sector in emerging markets worldwide – the first OPIC-supported investment fund of its kind and the latest agency initiative to support renewable energy development.
OPIC President and CEO Robert Mosbacher, Jr. announced a global call for proposals to manage the fund at the Washington International Renewable Energy Conference.
Through a competitive selection process, OPIC will choose fund managers with the best strategies for identifying optimal investments in renewable energy projects. Such investments could include solar thermal; wind power; small hydroelectric; geothermal; and biomass, including energy from waste.
In addition, the fund could also invest in related sectors in the field of energy and environmental sustainability, including energy efficiency systems and equipment, and water, waste and emissions control and treatment. OPIC will consider proposals from funds focused globally, or regionally in OPIC-eligible countries in Asia, Eurasia, Central Asia, the Middle East or Latin America. OPIC participation in any single fund would be limited to $100 million, or one third of the capital per fund.
“The Global Renewable Energy Fund Call represents an important milestone in OPIC’s effort to promote renewable technology. Making greater and more efficient use of renewable energy sources is both a means to reduce greenhouse gas concentrations and the ideal way to help emerging markets meet their growing energy demands,” Mosbacher said.
“OPIC believes it is important to lead by example and to adopt policies that inform good development decisions. Establishment of these funds, which complements previous OPIC policy commitments to greenhouse gas reductions in its portfolio and increased focus on clean technologies, will have a lasting impact on how OPIC does business – and hopefully a positive impact on America’s capacity to support the development of renewable energy resources in emerging markets overseas,” Mosbacher added.
OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.
OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency’s 35-year history, OPIC has supported $177 billion worth of investments that have helped developing countries to generate over $13 billion in host-government revenues and create over 800,000 host-country jobs. OPIC projects have also generated $71 billion in U.S. exports and supported more than 271,000 American jobs.