FOR IMMEDIATE RELEASE
September 19, 2002

(Printer-friendly version)

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

OPIC INSURES U.S. SMALL BUSINESS FOR EXPANSION IN PAKISTAN

WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) announced today that it would provide political risk insurance for the expansion of a U.S. small business in Pakistan, OPIC’s first project in a frontline state in the international war against terrorism.

Avaz Networks, Inc. of Irvine, CA, will use up to $8.8 million in OPIC insurance to cover expansion of its software development branch in Islamabad, Communications Enabling Technologies, Pakistan (CETP). The expansion will include the purchase and upgrade of equipment, office renovation, and the hiring of additional employees. By the fifth year of the project, CETP will employ and train approximately 250 employees.

Avaz develops semiconductor, hardware and software products that enhance and cost-reduce service deployment over cable and telecom networks. Avaz established its Islamabad office in 1998 for the design of its software and hardware.

“This project reflects several OPIC and Bush Administration priorities, including support for the economic development of frontline states in the international war against terrorism, and gaining U.S. small businesses access to emerging markets,” said OPIC President and CEO Dr. Peter Watson. “OPIC is assisting a small business that had been unable to find political risk insurance on the private market, in a project that will accelerate Pakistan’s growth in a sector with a great future.”

Safi Qureshey, CEO of Avaz, said, “We are very pleased with the insurance support OPIC is providing to Avaz. Avaz is developing exciting next generation cable and datacom solutions and our Pakistan operations provide us with competitive advantage.”

John C. Marsha, area vice president of Arthur J. Gallagher & Co. of Miami, a broker which concluded the transaction, said, “the international risk management needs of our clients in the current political risk insurance climate are undoubtedly more challenging than in the recent past. OPIC's overwhelming support of broker represented clients allowed for a viable and timely solution for our client.”

OPIC was established as an 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 more than 150 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.