OPIC Offers Stand-Alone

Terrorism Insurance to

Protect U.S. Businesses

Overseas

OPIC announced in July 2003 that it would

offer stand-alone terrorism insurance to support the

international war against terrorism and further protect American businesses abroad. Previously, terrorism coverage was only available under OPIC’s

broader political violence coverage.

OPIC’s terrorism insurance will cover violent

acts with the primary intent of achieving a political

objective, undertaken by individuals or groups that

do not constitute a national or international armed

force. In addition, coverage will include protection

against threats posed by weapons of mass destruction, including chemical, biological, radiological

and nuclear. OPIC will offer tenors of up to 10

years and will cover countries for which private sector insurance is not readily available.

In an effort to provide the most comprehensive

coverage possible for U.S. investors, OPIC will

work with private insurers to ease gaps in existing

terrorism coverage.

Under the stand-alone terrorism insurance,

OPIC will provide assets coverage to compensate

for the loss of or damage to tangible property

caused by terrorism. Business income coverage

also will be provided to protect the investor’s share

of income losses resulting from damage to or loss

of use of the assets of the foreign enterprise caused

by terrorism.

WHAT IS OPIC?

The Overseas Private Investment

Corporation (OPIC) was established as an independent

agency of the U.S. government

in 1971. OPIC 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 marketbased fees for its products, it operates on a self-sustaining basis at

no net cost to taxpayers.

WHAT DOES OPIC

DO?

OPIC helps U.S. businesses compete in emerging markets and

meet the challenges of investing

overseas when private sector support is not available. OPIC offers up

to $250 million in long term financing and/or political risk insurance to

U.S. companies investing in over

140 emerging markets and developing countries. Backed by the

full faith and credit of the U.S.

government, OPIC advocates for

U.S. investment, offers experience

in risk management, and draws on

an outstanding record of success.

WHY IS OPIC

IMPORTANT?

OPIC mobilizes America's private

sector to advance U.S. foreign

policy and development initiatives. Projects supported by

OPIC expand economic development, which encourages political

stability and free market reforms.

OPIC supported projects also

support American jobs and

exports — 264,000 U.S. jobs and

$69 billion in exports since 1971.

OPIC promotes U.S. best practices by requiring projects to

adhere to international standards

on the environment, worker

rights, and human rights.

WHAT IS OPIC

POLITICAL RISK

INSURANCE?

OPIC insures U.S. investors, contractors, exporters, and financial

institutions against political violence, expropriation of assets by

foreign governments, and the

inability to convert local currencies into U.S. dollars. OPIC can

insure up to $250 million per project and has no minimum investment size requirements. Insurance

is available for investments in

new ventures, expansions of

existing enterprises, privatizations, and acquisitions with positive developmental benefits.

HOW DOES OPIC

HELP SMALL

BUSINESS?

Helping America's small businesses grow through investments

in emerging markets is an important OPIC priority. OPIC provides

direct loans to U.S. small businesses, and offers insurance products to meet the special needs of

small businesses. Other client

services include streamlined

applications and processing procedures, a web-based interactive

training program and, a small

business hotline. For more information, please call OPIC’s Small

Business Center at 800-225-5722.

May 2005

OPIC Products

Office of External Affairs

1100 New York Avenue, NW

Washington, DC 20527

202-336-8400

www.opic.gov

OVERSEAS PRIVATE INVESTMENT 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.