Innovative Solutions. By helping U.S. investors mitigate political risks, OPIC insurance means more time to concentrate

on business. In addition to standard coverage for equity and parent company debt investments, OPIC offers coverages tailored for U.S.

contractors and exporters.

OPIC AND U.S. CONTRACTORS AND EXPORTERS

OPIC’s Insurance Program for Contractors and Exporters

May 2005

OPIC Highlights is published by Overseas Private Investment Corporation  1100 New York Avenue, N.W.  Washington, D.C. 20527

Insuring U.S. Investments

OPIC provides innovative

political risk insurance coverage for U.S. investments in new

projects, expansions of existing

operations, acquisitions with

positive developmental effects,

and privatizations located in

any of the 140 developing

countries where OPIC operates.

OPIC's political risk insurance covers against the following

risks: inconvertibility, expropriation and political violence. Eligible investors may purchase

one or a combination of these

coverages. OPIC can provide

up to $250 million in coverage

per project and can cover equity

investments, parent company

debt, third party loans, loan

guaranties, technical assistance

agreements and cross-border

leases. 

Coverage is also available

for U.S. contractors and

exporters, including certain

breaches by the foreign buyer

of the contractual dispute

resolution procedure, wrongful

calling of bid, performance,

advance payment and other

guaranties posted in favor of

foreign buyers. 

The insurance provided by

OPIC does not cover the commercial risks of a project. 

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 over $164 billion worth of investments

that will generate $69 billion in U.S. exports and support more than 264,000 American jobs. For general information, contact OPIC InfoLine at

(202) 336-8799. For information via the Internet and to subscribe to OPIC News, please go to http://www.opic.gov. 

Who Benefits?

Contractors and exporters insurance is typically

issued when the U.S. company has a contract

with a foreign government buyer. The insurance

provides security to U.S. exporters of goods or

services or U.S. contractors against a variety of

political risks in emerging markets.

Disputes Coverage

OPIC can insure a U.S. contractor or exporter

against contractual disputes that might arise during the performance of a contract. If the contract

is with a private sector party, OPIC will pay

compensation under disputes coverage only if

the problem is caused directly by the host government. Disputes coverage is not offered unless

a project has secure and adequate funding. 

Customs Bonds Coverage

Customs bonds are required when a foreign government wants assurances that a company will

re-export machinery or equipment temporarily

moved into the country rather than selling it

locally. OPIC provides compensation for loss

resulting from the wrongful calling by a foreign

government of a standby letter of credit issued as

a customs bond.

Assets Coverage

U.S. contractors and exporters with physical

assets overseas can insure their project assets

against currency inconvertibility, confiscation

and damage resulting from political violence.

Bid, Performance, Advance Payment or Other

Guaranties Coverage 

Bid, performance, advance payment or other

guaranties issued on behalf of a U.S. exporter of

goods and services or a contractor in favor of a

foreign buyer, governmental or private, can be

covered against the risk of wrongful calling. If

the buyer is a private entity, OPIC compensation

would be payable only if the wrongful calling

were directly caused by the host government.

For More Information 

For more information about OPIC's Insurance

Program for Contractors and Exporters, please

call OPIC’s Insurance Department at 202-336-

8400. For general information, contact OPIC

InfoLine at 202-336-8799. For information via

the Internet go to http://www.opic.gov. 

Supporting U.S. Contractors and Exporters

OPIC's political risk insurance can protect U.S. companies acting as contractors in international

construction, sales or service contracts and U.S. exporters of heavy machinery, turbines, computers,

medical equipment and other goods. 

OPIC Products

Office of External Affairs

1100 New York Avenue, NW

Washington, DC 20527

202-336-8400

www.opic.gov

OVERSEAS PRIVATE INVESTMENT CORPORATION