OPIC Press Release 2-04: 2/04/02

FOR IMMEDIATE RELEASE Wednesday, April 24, 2002 (Printer-friendly version) For further information, contact: Lawrence Spinelli (202) 336-8690 Timothy Harwood (202) 336-8744 U.S. SMALL BUSINESS TO USE OPIC INSURANCE FOR ELECTRICITY PROJECT IN NICARAGUA First U.S. investment in remote area will provide reliable energy source WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) announced today that it would provide $2 million in political risk insurance to a U.S. small business for the development of a diesel-fired power plant in northeastern Nicaragua – the first U.S. investment in that remote region of the country. American & Caribbean International Corporation, an engineering firm from Pinecrest, FL, will use the OPIC coverage for construction and operation of a 4.5-megawatt power plant near Puerto Cabezas, a two-phased project that will serve as the sole source of energy for the city. The first phase will involve installation and start-up of a 1.5 MW unit; the second phase will see installation of two additional 1.5 MW units. Electricity generated by the plant will be sold to the Nicaraguan national electricity company, ENEL. Nicaragua, the largest country in Central America, currently has one of the lowest levels of electricity usage in the region: only 51 percent of the country’s population has access to electricity, and the supply is unreliable, resulting in frequent brownouts. Nicaragua’s Energy Institute expects power demand to grow by six percent annually over the next 20 years, requiring $1.8 billion in investment to boost capacity by nearly 1,200 MW. The country began to privatize the sector in 1996. “Reliable electrical service is a vital ingredient for economic growth in developing countries. This project will enable a remote region of Nicaragua to enjoy multiple developmental benefits, including improved infrastructure and industrial output,” said OPIC President and CEO Dr. Peter Watson. “At the same time, OPIC is pleased to support a U.S. small business with political risk insurance it would not be able to find in the private sector.” 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 more than $142 billion worth of investments that have helped developing countries to generate over $11 billion in host-government revenues and create over 673,000 host-country jobs. OPIC projects have also generated more than $64 billion in U.S. exports and create nearly 250,000 American jobs.

First U.S. investment in remote area will provide reliable energy source

WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) announced today that it would provide $2 million in political risk insurance to a U.S. small business for the development of a diesel-fired power plant in northeastern Nicaragua – the first U.S. investment in that remote region of the country.

American & Caribbean International Corporation, an engineering firm from Pinecrest, FL, will use the OPIC coverage for construction and operation of a 4.5-megawatt power plant near Puerto Cabezas, a two-phased project that will serve as the sole source of energy for the city. The first phase will involve installation and start-up of a 1.5 MW unit; the second phase will see installation of two additional 1.5 MW units. Electricity generated by the plant will be sold to the Nicaraguan national electricity company, ENEL.

Nicaragua, the largest country in Central America, currently has one of the lowest levels of electricity usage in the region: only 51 percent of the country’s population has access to electricity, and the supply is unreliable, resulting in frequent brownouts. Nicaragua’s Energy Institute expects power demand to grow by six percent annually over the next 20 years, requiring $1.8 billion in investment to boost capacity by nearly 1,200 MW. The country began to privatize the sector in 1996.

“Reliable electrical service is a vital ingredient for economic growth in developing countries. This project will enable a remote region of Nicaragua to enjoy multiple developmental benefits, including improved infrastructure and industrial output,” said OPIC President and CEO Dr. Peter Watson. “At the same time, OPIC is pleased to support a U.S. small business with political risk insurance it would not be able to find in the private sector.”

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 more than $142 billion worth of investments that have helped developing countries to generate over $11 billion in host-government revenues and create over 673,000 host-country jobs. OPIC projects have also generated more than $64 billion in U.S. exports and create nearly 250,000 American jobs.

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