FOR IMMEDIATE RELEASE
Friday, March 15, 2002

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For further information, contact:
Lawrence Spinelli (202) 336-8690
Timothy Harwood (202) 336-8744

U.S. AND PALAU SIGN INVESTMENT AGREEMENT

President of Palau Tommy Remengesau, Jr. and OPIC President and CEO Dr. Peter Watson sign a bilateral investment agreement between the U.S. and Palau.

WASHINGTON, D.C. – During a visit by Palauan President Tommy E. Remengesau, Jr., the Overseas Private Investment Corporation (OPIC) today concluded a bilateral investment incentive agreement between the United States and the Republic of Palau. OPIC President and CEO Dr. Peter Watson signed the agreement on behalf of the U.S. government. 

The agreement – the first between the U.S. and Palau, which achieved independence in 1994 – enables OPIC to make available all its products and services to the Pacific island nation.

The agreement affirms a “common desire to encourage economic activities in the Republic of Palau that promote the development of the economic resources and productive capacities of the Republic of Palau,” recognizing that that objective can be promoted by OPIC, “in the form of investment insurance and reinsurance, debt and equity investments and investment guaranties.”

Dr. Watson noted that Palau, formerly a UN Trust Territory of the Pacific under U.S. administration, had witnessed considerable economic growth during the past decade, due largely to an expanding tourism sector, and presented good opportunities for U.S. investors. 

“Palau’s impressive economic growth since independence sends a strong signal to the U.S. private sector that American investors should find ample opportunity to conduct profitable business there, and at the same time help the Palauan economy develop further. OPIC looks forward to supporting that process,” Dr. Watson said.

OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in 140 emerging markets and developing nations worldwide. Over the agency’s 30-year history, OPIC has supported $138 billion worth of investments that have helped developing countries to generate over $10 billion in host-government revenues and create nearly 668,000 host-country jobs. OPIC projects have also generated $63.6 billion in U.S. exports and create nearly 250,000 American jobs.