OPIC Board Approves Projects in Africa, Indo-Pacific, and Latin America
September 11, 2019
WASHINGTON – The Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, today approved financing for projects that advance global development by improving critical infrastructure, increasing energy supply, and supporting financing for small businesses.
“The Board approved projects today that will help address critical development challenges in countries around the world, creating opportunity and strengthening economies to grow and support communities,” said OPIC Acting President and CEO David Bohigian.
OPIC is preparing to transform into a new, modernized agency called the U.S. International Development Finance Corporation (DFC). Equipped with a total investment cap of $60 billion—more than double OPIC’s $29 billion investment cap—DFC will have more tools and resources to invest in developing countries around the world, providing businesses with the means to better manage risk, fostering economic development, and advancing U.S. foreign policy.
Read Acting President Bohigian’s report to the board here.
Projects approved today include:
- Support for marine conservation in Barbados: The Board approved $100 million in OPIC political risk insurance to support the first major effort to establish a long-term source of funding for critical marine conservation activities in Barbados, through The Nature Conservancy in coordination with the government and private sector stakeholders, designed to support the local economy.
- Increasing commerce and tourism in Senegal: The Board approved $64 million in OPIC financing to support the construction and operation of two hotels in Dakar, the Sheraton Dakar hotel and Aloft Dakar hotel. The project is expected to improve tourism and infrastructure, while reducing unemployment, particularly for women. Additionally, the project will help to grow local small and medium-sized enterprises as part of the hotels’ supply chain in Senegal.
- Providing financing for Small and Medium Enterprises in India: The Board approved $185 million in OPIC financing for Cholamandalam Investment and Finance Company Limited to provide critical funding to over 25,000 small and medium sized enterprises (SMEs) in low-income areas of India that lack access to financing options. Loans from Cholamandalam will help entrepreneurs secure financing necessary to purchase vehicles and equipment to expand their business.
- Support for two wind farms in Argentina: The Board approved $115.5 million in OPIC financing for the Energética Wind Project in Argentina to help address significant electricity supply shortages, expand power generation capacity through the development of affordable renewable energy, and diversify the country’s energy supply. The project will support the development, construction, and operation of a 100 megawatt wind power plant located near Tres Picos, Buenos Aires province. Additionally, the Board approved $122.6 million in OPIC financing for a second wind farm, the Vientos Neuqinos Wind Project. Vientos Neuqinos will develop, construct, and operate a 100.5 megawatt wind power plant located near Bajada Colorada, Neuquén province.
- Boosting economic growth through energy production in Argentina: The Board approved $300 million in OPIC financing for Vista Oil and Gas Argentina S.A.U. to catalyze investment in one of Argentina’s key industries. The project will support economic growth at a critical time for the country and increase energy independence. The Board also approved $150 million in financing to Aleph Midstream S.A. in Argentina to develop independent oil and gas transportation and processing infrastructure. The projects are expected to create local jobs, and generate demand for local services and goods.
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, and advocacy and by partnering with private equity 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.