OPIC Supports U.S. Investment in North Africa

and the Middle East

Historically, OPIC has provided more than $5 billion in finance and insurance to support nearly

400 projects in the services, manufacturing and energy sectors. OPIC’s current investment portfolio provides more than $840 million to projects in the region.

OPIC Highlights

Office of External Affairs

1100 New York Avenue, NW

Washington, DC 20527

202-336-8400

www.opic.gov

OVERSEAS PRIVATE INVESTMENT CORPORATION

June 2005

OPIC Approves Desalination Project in

Algeria 

An OPIC loan to Hamma Water Desalination SpA, sponsored by Ionics Incorporated of Watertown, MA, is helping to bring urgently needed potable water to 25 percent

of the population in Algeria's capital city. Currently, half

of the city receives water only one out of every three

days. This project will enable distribution of potable

water to a higher proportion of the greater Algiers population on a more frequent and reliable basis. 

The OPIC loan of up to $200 million is being used for

the construction and operation of a reverse osmosis seawater desalination facility that will deliver 200,000 cubic

meters of potable water daily to Algiers through a joint

venture with the state-owned Algeria Energy Company.

This project is creating the first private reverse osmosis

potable water desalination plant in Algeria.

OPIC Insures Largest U.S. Investor in Egypt

OPIC is providing up to $300 million in political risk

insurance to a U.S. company that is helping Egypt shift

the emphasis of its energy

production from oil to

more environmentallyfriendly natural gas.

Houston-based Apache

Corporation, the largest

U.S. investor in Egypt, is

using the political risk

insurance to develop various oil and gas concessions in Egypt. Apache's

natural gas discoveries in

the Western Desert have

already played a significant role in helping

Egypt to convert

much of its thermal

power generation

capacity from oil to

natural gas, and in

providing the

resources necessary

to meet growing

local energy needs as well as expanding Egypt's hydrocarbon exports. Egypt's production of crude oil from

maturing oil fields is declining, while large discoveries of

gas have emerged in the Western Desert and Nile Delta. 

"Since 2000, Apache has doubled its production in Egypt

and has considerable running room for additional investment," said G. Steven Farris, Apache's president, chief

executive officer and chief operating officer. "With the

Egyptian General Petroleum Corporation as our partner

and now with OPIC's substantial support, we look forward to further developing Egypt's considerable hydrocarbon potential."

OPIC Supports Innovative Energy Project in

Morocco

OPIC is providing over $70 million in financing to CMS

Generation Company of Dearborn,

Michigan to help provide Morocco with

over half the country's annual domestic

electrical energy production. CMS and

its partner ABB Energy Ventures, are

privatizing and expanding the stateowned Jorf Lasfar power plant near

Casablanca, in what was named "Project

of the Year" by Project Finance

Magazine in 1998. "Jorf Lasfar is an

essential step to prove that Morocco is

serious about private projects and in creating terms and conditions that are good

for the market," said Joseph Tomasik,

CMS Vice President and Chief

Development Officer.

Apache Corporation, the largest U.S. investor in Egypt, is

using OPIC political risk insurance to develop various oil

and gas concessions in Egypt. Photos Courtesy of Apache

Corporation
OPIC is a U.S. government agency that 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. Since 1971, OPIC has supported more than $164 billion worth of investments that have generated over $69 billion in

U.S. exports and supported more than 264,000 American jobs. For more information please go to www.opic.gov.

OPIC Supports Power Project in Gaza

OPIC is providing $48 million in political risk

insurance to a subsidiary of Morganti Group, Inc., a

Connecticut-based construction company, to help

operate a power plant in the Gaza Strip, the first

such plant under the regulatory control of the

Palestinian Energy Authority (PEA).

This plant is expected to benefit people in the Gaza

Strip by reducing dependence on imported power,

and is an integral part of establishing regional linkages in electricity, water and natural gas infrastructure in the region.

OPIC and Citigroup Establish Lending

Facility to Revive SMEs in Iraq 

OPIC and Citigroup have established a $131 million

lending facility designed to revitalize small and

medium-sized enterprises (SMEs) in Iraq.

Arranged by OPIC, Citigroup Export and Agency

Finance and the Dubai-based Citigroup

Representative Office, the facility will provide loans

to Iraqi financial institutions, which in turn will lend

the funds to Iraqi SMEs to finance their investment

and working capital requirements. 

The project will comprise a $92.8 million facility

provided by Citigroup, backed by an investment

guaranty from OPIC; a $23.2 million grant from the

Coalition Provisional Authority and a $15 million

syndicated bank facility arranged by Citigroup. BNP

Paribas and HBK will participate in the syndicate

along with Citigroup. 

Nadeem Hussain, head of Citigroup's Iraq

Representative Office, said, "We are delighted to

contribute towards the re-establishment of small to

medium enterprises in Iraq and to provide working

capital for these corporations. OPIC's involvement

has been instrumental in finalizing the facility. We

look forward to concluding other deals in Iraq with

OPIC."

OPIC Helps Renovate American School in

Tunisia

OPIC is providing $4.5 million in political risk insurance to

the American Cooperative School of Tunis (ACST)

Association, a U.S. nonprofit corporation, for renovations

to an American school in Tunisia which provides primary

and secondary education to both American and Tunisian

students. 

The 46-year-old school offers an educational program

equivalent to an American university preparatory school,

from pre-kindergarten through grade twelve, for students of

all nationalities. Approximately one fourth of the student

population is American.

In addition to providing support to American expatriates

with dependent children living in Tunisia and providing

valuable educational opportunities to Tunisian children, the

school also generates local salaries, fees and expenses in

U.S. dollars, thereby bringing hard currency into Tunisia.

OPIC political risk insurance is being used for renovations

to an American school in Tunisia which provides primary

and secondary education to both American and Tunisian

students.