OPIC Board of Directors Approves $400 Million in Financing and Political Risk Insurance for Wind Power Project in Ukraine
December 14, 2017
WASHINGTON - The Board of Directors of the Overseas Private Investment Corporation (OPIC) today approved financing and political risk insurance to support construction of a wind farm in Ukraine that will significantly increase the country’s power generation capacity and bolster energy security.
OPIC, the U.S. Government’s development finance institution, approved up to $150 million in financing along with up to $250 million in political risk insurance and reinsurance to EuroCape Ukraine I, LLC, to support construction and operation of the first 225 MW phase of a planned 500 MW wind farm. By increasing Ukraine’s wind generation capacity by 40 percent, the project will strengthen energy security in Ukraine. The country currently depends on imports for about 40 percent of its total energy needs and is vulnerable to supply disruptions from its foreign suppliers. GE will supply and install 62 wind turbines for the project and provide long-term operations and maintenance services.
“This project will mobilize private capital to advance development in a region that is critical to American foreign policy,” said Ray W. Washburne, OPIC President and Chief Executive Officer. “It illustrates OPIC’s effectiveness in supporting major infrastructure projects.”
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.