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Guinea President visits OPIC
Alpha Conde, President of the Republic of Guinea, met with OPIC President and CEO Elizabeth Littlefield and OPIC Executive Vice President Mimi Alemayehou on Aug. 1. Read more
Eikenberry visits Marriott Kabul project
U.S. Ambassador to Afghanistan Karl Eikenberry (pictured here at a ribbon-cutting ceremony) visited the construction site of the 209-room Kabul Marriott on June 6. The 5-star hotel, which is backed by an OPIC loan, has created more than 1,000 local jobs and represents one of the largest private-sector investments in the country to date. It is scheduled to open in late 2012.
For more photos, visit the Overseas Private Investment Corp. on Facebook.
"Huge challenge, huge opportunity"
OPIC President and CEO Elizabeth Littlefield spoke at the Center for Strategic & International Studies on June 2 about supporting the Arab Spring by mobilizing investment capital. In this audio clip, Littlefield describes her recent trip to Egypt and Tunisia with Secretary of State Hillary Clinton.
OPIC and IFC sign cooperation agreement
OPIC and the International Finance Corporation (IFC) announced on May 31, 2011 that OPIC has adopted IFC’s Master Cooperation Agreement, making it easier for both institutions to collaborate on private sector investments in emerging markets and particularly in the poorest countries.
The agreement standardizes steps that lenders take when joining IFC to co-finance projects, increasing efficiencies and cutting costs to borrowers and lenders throughout the life of a loan. Lenders who adopt the agreement benefit from IFC’s existing syndication platform, deal-structuring expertise, due diligence, and global presence.
“OPIC’s partnership with IFC rises to a new level with this agreement, by streamlining our mutual support for projects in sectors such as renewable energy and impact investment which are so vital to sustained economic growth in emerging markets,” said OPIC President and CEO Elizabeth Littlefield (pictured here with IFC Executive Vice President Lars Thunell at the signing ceremony).
IFC, a member of the World Bank Group, mobilizes funding from other financiers to meet the needs of private-sector clients in emerging markets.
Elizabeth Littlefield discusses highlights from Jakarta Conference
OPIC’s May 2011 conference in Jakarta, Indonesia, Access to Opportunity in Southeast Asia, drew more than 300 participants, among them U.S. and local businesses interested in investing in the region in ways that would deliver important developmental benefits, such as better utility services and improved agriculture.
Indonesian President Susilo Bambang Yudhoyono told American businesses that the country represented one of the most promising investing opportunities in the region.
Here, OPIC President and CEO Elizabeth Littlefield (pictured with U.S. ambassador to Indonesia, Scot Marciel and Indonesian President Susilo Bambang Yudhoyono) shares some conference highlights. 
Q. Why did OPIC select Jakarta as the site of this year’s international conference?
There are great opportunities in Southeast Asia thanks to increasing wealth, urbanization and a young population with rising income and consumption levels.
What are some of the investment opportunities in the region?
Energy is a big opportunity. Energy demand in ASEAN countries (Association of Southeast Asian Nations) is expected to increase 80% over the next 20 years and the International Energy Agency estimates that in order to keep up with the growth in energy demand, more than $1.1 trillion will need to be invested in the region’s energy infrastructure, much of that in renewable energy.
ASEAN leaders have set a goal of 15% of the total energy mix being comprised of renewable sources by 2015. Southeast Asia is blessed with abundant renewable resources and has great potential for geothermal, solar, wind, hydro and biomass projects.
In addition to geothermal power, which has significant potential, investors are also looking at projects in solar PV (photovoltaic) and CSP (concentrated solar power), small-scale hydro, waste-to-energy, sustainable forestry and smart grid technology.
What are the best ways to encourage such investments while also protecting the region's resources?
REDD initiatives can be and have been successful. REDD, which stands for Reducing Emissions from Deforestation and Forest Degradation, is a market-based system for reducing emissions. It has been used successfully in Kenya, Cambodia and other countries.
Infrastructure was a big theme of the conference. What are the investment opportunities in that sector?
In many countries in the region, infrastructure is inadequate, and this adds to the cost of doing businessand creates a big opportunity for U.S. companies, although investors need to be mindful that these deals take a lot of time and energy to develop. One of the ideas discussed during the conference was that of an “infrastructure bank,” which would lend in local currency, to protect against foreign exchange risk and capital controls, and offer government-to-government guarantees. This could help the region address the particularly acute need for logistics infrastructure, such as ports, railways, and road networks, which impact the supply chain for production and delivery of goods and services.
Can you touch on some of the other investment opportunities, such as information technology, that were discussed at the conference?
There are many opportunities in to invest in IT throughout the region, particularly in the VIP countries of Southeast Asia (Vietnam, Indonesia, and Philippines), where 80% of the region’s people reside. Opportunities include equipment manufacturing, social networking applications, and e-health. Expanding broadband into rural areas will be another opportunity for U.S. investors.
What about tourism?
The Southeast Asian travel industry is growing exponentially. Both economy hotels and super-deluxe, high-end resorts represent good investment opportunities.
What is the next frontier of investment opportunities in the region?
Finance is one emerging opportunity. Many of the governments in Southeast Asia are proactively reaching out for foreign investment. Improvements in the regulatory regime need to continue so that longer-term investments can be made in a predictable risk environment. In addition, public policies related to government investment need to be clarified and consistently applied.
President Obama Announces $1 Billion in New OPIC Support for Egypt
In his May 19 speech on the Middle East and North Africa, President Obama announced that OPIC would provide up to $1 billion in new financing to support infrastructure and job creation specifically in Egypt.
The OPIC financing will leverage additional private sector investment from both the United States and Egypt to support projects in sectors such as infrastructure, housing and consumer financing. The initiative builds upon OPIC experience in supporting private sector contributions to democratic reform.
OPIC will work with the Egyptian government, other U.S. government agencies, and U.S. and international private sector sources of capital to identify Egyptian parastatal institutions capable of originating loans for public-private partnerships that will promote growth in mutually agreed-upon sectors of the Egyptian economy.
Separately, on March 17, 2011, Secretary of State Hillary Clinton announced that OPIC will provide up to $2 billion in financial support to catalyze private sector investment in the Middle East and North Africa region. Intended to encourage partnerships between U.S. and Arab businesses in order to generate economic growth and job creation in the region, the MENA initiative will prioritize support for small- and medium-sized enterprises and provide projects with fast-track approval to mobilize capital quickly. OPIC will work to identify and encourage private businesses, especially U.S. businesses, to invest in the region by providing direct loans, guarantees and political risk insurance.
President Obama discussed OPIC’s MENA initiative with King Abdullah II of Jordan during a May 17 meeting at the White House, indicating that the U.S. had “mobilized several hundreds of millions of dollars through OPIC [for Jordan].” The OPIC financing is expected to leverage up to $1 billion of investment in Jordan.
OPIC supports U.S. investment in emerging markets worldwide, fostering development & the growth of free markets.