Arbitral Award Default
OPIC can provide arbitral award default (AAD) and denial of justice coverage for US debt and equity investors. AAD protects the insured from non-payment of an arbitral award by a host country government. Please see Specialty Products Disputes Coverage for more information. OPIC is also willing to consider coverage for losses that result from host country government corruption.
Project Profile: OPIC Insurance for a Solar Project in South Asia
OPIC provided political risk insurance for a small-scale photovoltaic solar project in South Asia. The project was developed under a long-term power purchase agreement (PPA) between a U.S. solar power developer and a state government utility. OPIC protected the power developer against a variety of risks including government default on an arbitral award and government interference with the dispute resolution process provided under the PPA. In addition, because the project is expected to generate carbon credits under the UN’s Clean Development Mechanism, OPIC protected the investor against government interference in the generation or sale of carbon credits, including breaches of the carbon credit provision of the PPA or arbitrary changes in law that impair the value of the carbon credits.