FOR IMMEDIATE RELEASE
Thursday, June 13, 2002

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

SMALL BUSINESS LOAN HELPS AIRLINE EXPAND SERVICE AFTER SEPTEMBER 11

WASHINGTON, D.C. – Helping a U.S. small business overcome the devastating effects of September 11 on regional tourism, the Overseas Private Investment Corporation (OPIC) announced today that it would provide a second loan for the expansion of air service between North America and the Caribbean island of Nevis.

The $1 million OPIC loan will enable Daystar Airways of Alaska – known regionally as Nevis Express – to lease an additional 19-seat aircraft to expand its route system, upgrade ground facilities at the San Juan airport, and improve liquidity. OPIC announced an initial $735,000 loan for Daystar in May 2001.

The company’s nonstop San Juan-Nevis route reduces travel time between the U.S. and Nevis by as much as three hours by eliminating a plane-change in St. Kitts.

OPIC President and CEO Dr. Peter Watson said the financing provided by OPIC was not available in private markets due to the negative effects of September 11 on tourism traffic and insurance rates, and would enable Daystar to benefit from a recent code share agreement between Nevis Express and U.S. Airways.

Total cost of the project is $1 million. The project will generate 25 new jobs, including 17 managerial positions, as well as a positive net impact on U.S. balance of payments of nearly $13 million. 

OPIC was established as an independent agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.

Over the agency’s 30-year history, OPIC has supported $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 $64 billion in U.S. exports and create more than 253,000 American jobs.