FOR IMMEDIATE RELEASE
August 29, 2002

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

FOUR OPIC PROJECTS IN AFRICA WILL HELP MEET DEVELOPMENTAL NEEDS

WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) will provide financing to four projects designed to help the sub-Saharan African nations of South Africa, Mozambique, Malawi and Ghana meet critical long-term developmental needs, OPIC President and CEO Dr. Peter Watson announced today at the World Summit on Sustainable Development.

In South Africa, in its first housing initiative in Africa, OPIC will provide a $15 million loan guaranty to help build 90,000 homes for low-income families, providing shelter for up to half a million people.

In Mozambique, OPIC intends to support a project that would extend the Vilanculos Coastal Wildlife Sanctuary by 17,000 hectares – more than 50 percent – and develop its tourism potential through the addition of new lodging. The sanctuary is home to several endangered species. Later this year, indigenous species such as buffalo and hippo will be reintroduced to the reserve. The project will also support the local community through the provision of jobs, a clinic, school and housing for local staff.

Also in Mozambique, a pending $22 million OPIC loan will help contribute to the rehabilitation of an existing rail and port system operating in the Nacala Corridor between Mozambique and Malawi. The project would enable those countries to reduce the cost of transporting petroleum and much-needed food, as well as exports. It would also help Mozambique to restore its physical infrastructure, much of which was destroyed during a two-decade civil war.

Pending OPIC financing will enable a Texas-based company, Living Water International (LWI), to drill dozens of wells in Ghana, providing local communities with safe drinking water. The project would essentially duplicate a current OPIC/LWI partnership in Kenya, whereby rates of waterborne diseases have dropped from 95 percent to less than five percent in communities where LWI has provided clean water. Dr. Watson said the partnership would likely extend to other African countries in the near future.

"These four OPIC projects will help South Africa, Mozambique, Malawi and Ghana meet basic developmental needs of their populations – the delivery of housing, clean drinking water and food foremost among them – which in turn will help those countries prepare for future economic growth," said Dr. Watson. "They demonstrate the Bush Administration’s commitment to supporting economic development in Africa that both protects the environment and maximizes local participation in the economy."

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.

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 $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.