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INTRODUCTION 2

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2009 OPIC annual repo

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 introduction
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It is in times of economic uncertainty that the role 

of the Overseas Private Investment Corporation 

becomes even more relevant and important. As the 

primary government agency supporting U.S. private

sector investment overseas, OPIC is playing a critical 

role by helping U.S. businesses during a time of

severe retrenchment and global uncertainty. As an 

international development agency and an instrument 

of U.S. foreign policy, OPIC management and staff

worked tirelessly in 2009 to address the global 

challenges confronting the United States

To support the President’s initiative, announced at 

the Summit of the Americas, to “create a broader

foundation for prosperity that builds new markets 

and powers new growth for all peoples in the 

[Western] Hemisphere,” OPIC partnered with the

Inter-American Investment Corporation and the 

Inter-American Development Bank’s Multilatera

Investment Fund to establish the new Microfinanc

Growth Fund. Secretary of the Treasury Timot

Geithner specifically commended OPIC for helping the

Administration to restart lending to Latin American 

and Caribbean micro and small businesses and for 

the agency’s “timely support in turning this concept 

into reality.”

When President Obama announced in Cairo that 

the United States would launch a new fund “to

support technological development in Muslimmajority countries, and to help transfer ideas to the

marketplace so they can create more jobs,” he was 

speaking of the OPIC-financed Global Technology

and Innovation Fund, to be seeded with $25 million

to $150 million in OPIC capital. The fund is part of 

a larger call for proposals that could ultimately 

result in multiple new investment funds that support 

technological growth.

And to help U.S. businesses, particularly small

businesses, continue to grow through overseas 

investment even in a time of shrinking credit and 

political volatility, OPIC expanded its outreach efforts. 

OPIC served as a collaborating partner for several 

important conferences, including working with the 

California-based Center for International Trade 

Development to support the pioneering Renewable 

Energies in Emerging Markets conference in Sa

Francisco. OPIC also organized two workshops

targeting minority and women-owned small 

businesses. The result of these efforts was that 

business plan summaries submitted for initial 

consideration for OPIC’s SME financing were up 15

percent over the same period in 2008.

Wherever and whenever U.S. private capital and

enterprise can support U.S. policy and help to

realize an Administration’s vision, OPIC is there 

to make it happen.

OPIC is an independent U.S. government agency

whose mission is to mobilize and facilitate the 

participation of U.S. private capital and skills in the

economic and social development of less-developed 

countries, and countries in transition from non-market 

to market economies. More importantly, there is no

other program in the U.S. government or the private

sector with a developmental purpose and tools equal 

to those of OPIC.

OPIC helps U.S. enterprises participate in overseas

markets by making direct loans, issuing loan 

OPIC: Even More relevant a
2009 OPIC annual repo

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4

guaranties and underwriting political risk insurance 

for developmental projects, and by establishing and 

investing in private equity funds created to finance 

projects in specific regions, markets or sectors. Since

OPIC does not compete with the private sector, OPIC 

support is unnecessary for projects that can be 

privately financed or insured.

But in uncertain times and in challenging markets,

private capital can be difficult to obtain, if it is available 

at all. OPIC’s readiness to provide support has often 

been the deciding factor in determining whether 

certain investments even take place. The private 

sector, in turn, works with OPIC, helping the agency to 

channel private investment into areas that are most in 

need, supporting host countries’ development and our 

nation’s foreign policy priorities.

And make no mistake, supporting economic 

development in the world’s emerging economies is 

central to U.S. international objectives. At the G-2

summit in Pittsburgh, President Obama expressed the 

U.S. commitment to work with all developed nations

to build new markets and help the world’s most 

vulnerable citizens climb out of poverty. The President 

also called for “a new era of engagement that yields 

real results for our people -- an era when nations live 

up to their responsibilities, and act on behalf of our 

shared security and prosperity.”

It was a founding principle of OPIC in 1971 that private 

investment is a powerful catalyst for engagement, 

economic growth and poverty reduction. By focusing

on private investment, OPIC demonstrates that 

entrepreneurial initiative and national economic 

development are not mutually exclusive. Indeed, they 

are mutually beneficial. In the agency’s 38-year 

history, OPIC has supported $188 billion worth of 

investments that have helped developing countries to 

generate over 830,000 host-country jobs. The very 

prospect of these investments, and the OPIC support 

that made them possible, have contributed to the 

development of free market reforms and democratic 

institutions on which further investment, opportunity 

and personal liberty depend. OPIC investments have 

also supported $72 billion in U.S. exports and more

than 273,000 American jobs.

By charging market-based fees for its products,

OPIC operates on a self-sustaining basis, at no net 

cost to the American taxpayer. Through prudent risk 

management, OPIC has accumulated reserves of 

over $5 billion. In sum, OPIC is an effective tool for 

responsible economic development, and a good deal 

for the American taxpayer.

But with limited resources and just over 200

employees, OPIC must, of necessity, be highly 

selective in the projects it chooses to support each 

year. The agency is obligated to ensure that its 

projects confer on host communities as many 

positive developmental benefits as possible. Ideally, 

they should also provide a platform for subsequent 

economic growth.

Projects receiving OPIC support in 2009 demonstrated 

the many and varied ways that the agency can fulfill 

its developmental mission. New OPIC-supported 

projects will develop host countries’ physical 

infrastructure by expanding electric power capacity 

or rebuilding war ravaged cities. Other projects are 

designed to strengthen financial infrastructures at 

the national, local or micro-financing level. OPIC is 

promoting development of human capital by funding 
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WWW.OPIC.GOV 5

the construction of elementary and secondary schools 

and supporting projects that provide technical training 

and professional jobs. And OPIC-supported projects 

are helping to meet basic human needs, by providing 

clean water, healthy food and affordable housing.

Because the earth’s resources are limited, OPIC

in 2009 extended its commitment to supporting 

environmentally-sustainable development by 

financing projects which make use of renewable 

energy and green technologies. An OPIC loan helped 

to construct a solar power plant in India that sells 

clean, sustainably generated electricity to the grid. 

Another outstanding example is a biomass project 

that is converting waste rice husks into clean 

electricity for thousands of Indian villagers who 

currently rely on fossil fuel generators or who have no 

power at all.

This project is also a great example of OPIC’s 

successful outreach to and support of U.S. small

businesses. In this case the OPIC loan came about 

because an agency officer directly contacted the 

Virginia-based company to offer support. Widerranging outreach to the small business community

in 2009 included two more presentations of OPIC’s 

successful Expanding Horizons workshops, which

have now educated more than 1,000 minority and 

women business owners across the United States

about OPIC products and services.

While OPIC continually strives to better fulfill its mission, 

the agency recognizes that in an operational sense it can 

always do better. One area in which OPIC was proud to 

make improvement in 2009 was transparency.

In response to President Obama’s call for increased 

openness and accountability in government decisionmaking, OPIC implemented new transparency 

measures that are opening to the public an 

unprecedented breadth of information about OPICsupported projects and enabling more meaningful 

public comment and participation in the OPIC decisionmaking process. The OPIC Board of Directors meeting

in September 2009 was the first ever at which detailed

information on the most environmentally- and sociallysensitive proposed projects -- as well as summary 

information on every project to be voted on by the 

Board -- was posted on the OPIC Web site at least five

weeks before the meeting. It is no overstatement to 

say that OPIC is today operating more transparently 

than it has since the agency’s founding.

OPIC’s success as an agency, of course, depends on 

the success of its people. In that regard, OPIC is proud 

to have placed second in a ranking of the Best Places

to Work in the U.S. government among agencies

with fewer than 2,000 employees. OPIC has worked 

hard to establish a workplace that is both welcoming 

and challenging, one that equally values individual 

performance and the sense of teamwork that is 

necessary to execute complex projects in emerging 

and developing economies.

As Vice President Biden said in helping to honor thos

employees presented with service awards in 2009, 

“The OPIC family is a testament to how commitment 

and teamwork can mobilize U.S. private capital, help

support sustainable development in new markets 

overseas and create jobs here in the United States.

The recipients of this award are a shining example 

of how Americans willing to answer the call of public 

service can truly improve our nation and help build a 

stronger world.” 
2009 OPIC annual repo

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 commi tte

transpar
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Because transparency in government is critical in

securing both fiscal accountability and public trust, 

one of President Obama’s first acts in office was to call 

on all federal agencies to open their decision-making 

processes and increase public access to useful 

information. OPIC responded by announcing new 

transparency measures that make publicly available 

an unprecedented volume and breadth of information 

about OPIC-supported projects, and encourage a new 

level of public involvement in their development.

OPIC now posts to the agency Web site brief 

summaries of the most environmentally- or sociallysensitive projects at least 60 days before making 

a decision to support them. Detailed summaries for 

all projects scheduled for Board of Directors action

are posted at least five weeks in advance of Board

meetings. Summaries include information such as

project costs and potential environmental, social 

and economic impacts; assessment standards 

and mitigation measures; and where to obtain 

environmental and social project information. Also 

available now are summaries of the findings of thirdparty audits and quarterly listings of sub-projects of 

OPIC-supported investment funds.

Posting so much information so early increases public 

participation by allowing OPIC to invite and consider 

public comments. in advance of any decisions by 

the Board -- comments which are themselves also

posted on OPIC’s Web site. OPIC also announced that 

it will publish an OPIC Environmental and Social Policy

Statement to replace its environmental handbook, last

updated in 2004.

These new measures build on transparency initiatives 

of recent years in which OPIC had already enhanced 

its internal due diligence procedures, encouraged 

project sponsors to engage in meaningful, inclusive 

and culturally appropriate consultation with 

local stakeholders during all phases of project 

development, and to require such consultation on 

projects with significant social impacts.

The result of all these efforts is that today OPIC is 

operating more transparently than at anytime in the 

agency’s 38-year history.

MORE OPEN AND AC

As do all of the world’s major international finance and development institutions, OPIC recognizes its obligation to be accountable to t

people affected by the projects it supports.

Putting action to this commitment, and following the guidance of Congress, the OPIC Board of Directors created an Off

Accountability (OA) in 2005 to provide an independent forum where people affected by OPIC-supported projects can voice and reso

problems and to help assure that OPIC meets its own policy requirements concerning the environment, social impacts and worker a

human rights. As an independent ombudsman and compliance review office, OA enhances OPIC’s mission effectiveness by assur

affected communities and project sponsors alike that their complaints, concerns or requests for assistance will be handled with fairness, 

objectivity and transparency.

Several measures were taken in 2009 to strengthen and enhance the Office of Accountability. And in a four-year report on its activities

OA documented that it exists not just to handle problems, but to improve outcomes

Institutionalizing a mechanism of 
2009 OPIC annual repo

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 suppor

small busin
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U.S. small businesses looking to participate in

the global marketplace may well see themselves 

surrounded by insurmountable obstacles to potential 

opportunities. OPIC brings those opportunities 

within reach by providing eligible small businesses 

with project financing and political risk insurance 

generally not available to them through the private 

markets. With affordable rates, flexible coverages 

and streamlined approvals, OPIC’s approach to small 

business is as innovative and entrepreneurial as the 

businesses themselves. Projects approved for support 

in 2009 again demonstrated the job-creating knowhow that U.S. small businesses bring to the world’s

developing economies.

For example, in Uganda, where only five percent of the

population has bank accounts, a U.S. small business

is using an OPIC loan to deploy transformational 

financial infrastructure that will provide up to two 

million unbanked citizens with access to state-of-theart banking services. In partnership with the national 

government, MAPswitch Uganda is applying its

integrated biometric identification and mobile financial 

technology to overcome the lack of access that 

hampers economic progress in so many developing 

countries.

Georgian dairy operator Sante GMT Products, wh

used an OPIC loan in 2007 to establish new milk 

collection centers, received a $10 million loan in 2009 

to further expand collection, manufacturing, packaging 

and distribution operations at what has become 

Georgia’s largest producer of dairy and juice products

bringing u.s. entrepreneurship t

If any one constituency can be deemed a major beneficiary of OPIC resources, support and outreach, it is U.S. small businesse

growing Enterprise Development Network (EDN) and OPIC Partners Program enlist outside organizations to improve the access

small and medium-sized enterprises to political risk insurance to help protect their investments and to the overseas financial support they 

often find difficult to obtain.

To increase opportunities for women- and minority-owned businesses, OPIC in 2009 again offered its highly-successful Expand

Horizons workshops tailored especially for these entrepreneurs. Workshops in Boston and St. Louis drew attendees from across the

and as far away as England. This year’s events featured a new session about OPIC support for renewable and clean energy technol

projects, a new area of focus for the agency. More than 1,000 woman and minority business owners have now learned firsthand how O

and other government agencies can help them compete overseas.

Extending opportunities to small

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With its focus on long-term development, OPIC works 

to support projects that tie economic viability to a 

sustainable economic future. Today, that often means 

powering growth with alternative energies and newer, 

cleaner technologies.

Acting on President Obama’s pledge of U.S. support

to increase economic opportunity and job creation 

in Muslim-majority countries, OPIC issued a call for

proposals to manage one or more private equity 

investment funds that will promote the growth of 

technology in the Middle East, Asia and Africa. In

October 2009, OPIC also committed $100 million 

to the new Virgin Green Fund, one of six priva

equity funds approved in September 2008 designed

to leverage $505 million of OPIC financing to 

complement the fund’s investments in clean and 

renewable energy projects worldwide.

To build awareness of the potential returns on 

alternative energy investments, OPIC co-sponsored 

the Renewable Energy in Emerging Markets (REEM09

conference with the Centers for International Trade 

Development. Participants gathered in San Francisc

to learn of the challenges, solutions and successes 

in implementing and sustaining renewable energy 

infrastructures in the developing world.

In addition to these global initiatives, OPIC reached 

out on a personal level to U.S. entrepreneurs to help

them bring their solutions to waiting markets. After 

reading how Charlottesville, Virginia-based Hus

Power Systems (HPS) had brought electricity to fi

rural villages in India using a biomass process fueled 

by rice husks left over from milling, an OPIC Senior

Manager offered the company financing to expand

to hundreds of villages. HPS’s OPIC loan is fundin

36 rice husk-powered generators, each serving a 

village of about 600 households -- roughly 21,000 

households in total, representing 110,000 people. For

many residents, the carbon-neutral energy will be 

their first-time electricity or replacement of power 

from more expensive diesel generators.

Another great example, also in India, is OPIC’s support 

to Azure Power Punjab Ltd, also founded by a U.S.

entrepreneur. With a loan from OPIC the company 

successfully constructed and is operating a 2 MW

photovoltaic solar power plant near the city of Amritsar 

-- the first private megawatt-scale Solar Independent

Power Plant in India selling clean, sustainably 

generated electricity to the grid. The plant employs 

advanced solar photovoltaic technology to power 4,000 

rural homes, proving that it is possible to distribute 

solar power generation at the tail end of the grid. It is 

providing power to communities in rural India for the 

first time and enhancing the lives of tens of thousands 

of people.

investing with an eye to t

Improving energy efficiency is critical to reducing worldwide emissions of greenhouse gases (GHG) and increasing global energy security

Demonstrating the Administration’s commitment to that goal, OPIC settled a six-year lawsuit over climate change issues and reaffirmed 

previously-announced intent to increase investment in clean energy projects and to reduce the greenhouse gas emissions in the projects it funds.

“Between the new GHG Initiative and more aggressive investment focus, OPIC’s GHG emissions are capped and will go down, w

positive investments in clean energy are skyrocketing,” wrote John D. Sohn on the Climate Change Insights blog of McKenna L

Aldridge. “It’s a great story that the Obama Administration should let people know more about. OPIC is quietly going about its busin

turning a healthy profit for U.S. taxpayers, leveraging private sector capital and mitigating climate change

promoting green t

SUPPORrING OUR NA11

ION"S srrRKrl �GIC OBJECr

rIVES 

Genuine economic opportunit4. fueled b4 privote 

investment. is one of the most powerful tools in 

the struqqle oqoinst internotionol terrorism. Where 

economic despoir breeds support for extremist 

orqonizotions. economic opportunit4 con provide the 

foundotion for peoce. hope ond stobilit4. But privote 

investment depends on investor confidence. o 

requirement thot con be hord to come b4 in notions 

ot the forefront of the effort to defeot extremism. 

Enter OPlC. One of the first institutions to finonce 

projects in post-Tolibon Afqhoniston. OPI( in 2000 

continued to provide loons. quoronties ond politico! risk 

insuronce to support much-needed privote investment 

in this rebuildinq ond stroteqicollwimportont notion. 

□Pl( souqht out ond estoblished o relotionship

with the

ENHANCING PRIVATE SECTOR CAPAC1Tll 

-Consistent with U.S. ond OPI( polic4 to expond

the economic opportunities for oil seqments of o host

countr4's populotion.

-ln lorqe port becouse of the notion's securit4

chollenqes.

OPIC investments in Afghanistan demonstrate bow tbe agency rulftlls its mission lo add value by making possible transactions wbicb 

would be impossible or unlikely without OPIC. 'l'bis 1ldditionality" is critical because wilbout it, OPIC would be crowding out private sector 

fmancing, insurance and investment. Through additionality, OPIC expands development by supporting unique investment projects. 

OPIC bas bad procedures in place since lbe beginning of lbis decade lo ensure tbat eacb and every new project submitted for consideration 

is open to participation by private insw-ers, thereby complementing tbe private market ratber lban competing witb it. Project sponsors 

must in fact first seek insw·ance from private insurance companies before tbey apply for OPIC coverage. 

,. Information has been Redacted in accordance with the two principled exceptions of the Foreign Aid Transparency and Accountability Act 

(FATAA) of 2016; including the health and security of implementing partners, as well as national interest of the United States.. 

PAGE 

13 
2009 OPIC annual repo

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 believi

the middl
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Throughout the Middle East, OPIC support of

developmental projects advances U.S. policy, as

articulated by President Obama, to bring to the region 

the benefits sought by people everywhere: an end 

to terror, access to basic services, the opportunity to 

live their dreams, and the security that can only come 

with the rule of law.

OPIC-supported projects announced or committed 

in 2009 included support for significant private 

investment in the continuing reconstruction efforts 

for two nations recovering from war. In Iraq, OPIC 

will provide a direct loan and political risk insurance 

to support the construction and operation of an 

international business-class hotel. The project is 

expected to generate positive foreign exchange 

earnings as well as permanent well-paying jobs. In 

Lebanon, OPIC has loaned $261 million to the nation’s 

banking sector under two risk-sharing framework 

agreements with Citibank. In 2009, OPIC signed a 

new $34 million loan with Byblos Bank and provide

a $55 million guaranty for Citi’s lending to Bank

Audi, both of which will support loans for small and 

medium-sized enterprises, individual mortgages 

and consumer finance. OPIC is also providing $7.5 

million in political risk insurance to support the project. 

Supporting transparent institutions like Bank Aud

increases the likelihood of positive project outcomes, 

given the borrower’s support for community outreach 

and service programs.

In another demonstration of its ability to encourage 

private investment in this challenging region, OPIC 

has agreed to reinsure the coverages provided to 

U.S. investors by IGI Insurance Limited in Pakistan

OPIC insurance support will expand the ability of 

IGI Insurance, as well as the Pakistani insurance

sector more broadly, to provide coverage for political 

violence, expropriation and currency inconvertibility in 

a risky market. The non-profit International Executive 

Service Corps, an insurance originator in OPIC’s

Enterprise Development Network, helped bring this 

relationship about by introducing IGI to OPIC and

facilitating discussions.

And OPIC loans totaling $250 million -- all under 

the sponsorship of U.S.-based CHF International,

nonprofit organization -- will enable three Jordanian 

banks -- Cairo Amman Bank, Arab Bank Plc, an

Housing Bank for Trade and Finance -- to expa

homeownership for low-income families, in support 

of the National Housing Initiative announced by

King Abdullah.

working towad a futures of peace an

The provision of an adequate supply of water is one of the most important developmental challenges any nation faces. In a water-scarc

country such as Jordan, it is especially difficult. OPIC is helping Jordan to alleviate its water shortage through a $250 million investme

guaranty and up to $150 million of political risk insurance to support the historic Disi Water Conveyance Proje

The centerpiece of the $1 billion project being built by GAMA Energy A.S., a company owned by GAMA Holding A.S. and GE Ener

Financial Services, is a 325-kilometer pipeline that will pump more than 100 million cubic meters of water a year from the Disi aquifer 

Mudawarra to the capital of Amman. It is the largest such privately-financed water project in the region

priming the develop
2009 OPIC annual repo

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 focus

afri
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Global economic downturns are never welcome.

But in Africa, which had been steadily building

the foundations for higher growth, lower poverty 

and economic reform, the financial crisis of 2009 

overturned years of progress, swept away jobs, 

revenues and livelihoods, and produced an 18-percent 

drop in foreign direct investment.

Reversing that trend is much more than any one 

nation or organization can do alone. That is why in 

2009 OPIC forged important partnerships with African 

and U.S. investment-related agencies and private

capital markets in order to encourage investment 

and promote growth by increasing access to finance, 

insurance and other services for the continent’s most 

vulnerable sectors.

With $227 million in OPIC support, three new private 

equity funds will leverage up to $680 million in 

conventional and creative financing for medium-sized 

businesses, pan-African companies and reformfocused countries across the continent. Moreover, OPIC

signed a new agreement with Africa’s only multilateral 

investment and credit insurer -- the African Trade 

Insurance Agency (ATI) to renew its cooperation and 

to work together more closely to share information 

about products and services, to consider opportunities 

for reinsurance in Africa, and to work with ATI to build 

enhanced capabilities and capacity in offering political 

risk insurance. OPIC and ATI will soon begin reaching 

out to companies and investors in Africa during a 

business development tour and through technical 

capacity-building efforts targeting African banks, 

insurers and insurance brokers.

In Liberia, OPIC has provided financing to Buchanan

Renewables for two investments in the renewable 

energy sector. Buchanan Renewables Fuel receive

a $15 million loan from OPIC to establish a business 

harvesting wood chips from abundant and sustainable 

rubber trees from plantations for export to biomass 

power plants. OPIC also committed $111.7 million in 

financing to Buchanan Renewables Monrovia Power t

build a 36 MW biomass power plant near Monrovia t

be fueled by rubber wood chips. The biomass power 

plant will have an enormous impact in a country that 

currently has less than 10 MW of installed generation

capacity, using expensive diesel fuel. 

bringing economic growh to a reg

Recognizing and reinforcing nearly two decades of working together to facilitate U.S. private sector investment in Africa

presented its first-ever Partnership Award to the Corporate Council on Africa (CCA). Established in 1993, CCA works closely

governments, multilateral groups and business to improve Africa’s trade and investment climate, and to raise the profile of Africa in 

the U.S. business communit

“Business linkages generated by the partnership between CCA and OPIC have resulted in a significant number of inves

opportunities for CCA members, which in turn have created economic growth throughout Africa. We look forward to continuing o

close partnership with OPIC, to the benefit of entrepreneurs across Africa,” said CCA President Stephen Hayes in accepting the 

OPIC created the OPIC Partnership Award in 2009 to recognize organizations for exceptional support and dedication in he

OPIC to encourage American investment in emerging markets, by disseminating information about OPIC products and ser

to their constituencies.

honoring a long-standing 

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2009 investment activ

US Sponsor/Insured Investor Project Name Project Descripti

AFRA 

Angol

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$812,603 Insurance

Tivannah USA, Inc. Tivannah Global, Lda Expansion of building materials 

manufacturing operation

$5,919,783 Finance

Cameroo

Citibank, N.A. Agence de Credit Pour l’Entreprise Priv* Expansion of microfinance portfolio $1,166,550 Finance

Congo, Democratic Republ

Seaboard Overseas Limited Minoterie de Matadi, S.A.R.L. Cargo handling facility $6,459,027 Insurance

Ethiop

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$28,566 Insurance

Gab

Overseas Development and Investment 

Company, Inc.

American Dream Home, S.C.I. Housing construction $990,000 Insurance

Gh

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$86,196 Insurance

Microvest I, LP Sinapi Aba Trust Microfinance on-lending $1,000,000 Insurance

Sandy Osei-Agyeman Slid Industries, Ltd Expansion of hair care manufacturing company $1,000,000 Finance

Ir

Dar Es Salaam Insurance Company Dar Es Salaam Insurance Company Facultative reinsurance for hotel $24,750,000 Insurance

Diana Dane Dajani Revocable Trust/Robert K. 

Kelley

Summit Hotels Limited/Summit Global Group International business-class hotel $50,000,000 Finance

Iraq Middle Market Development Foundation Iraq Middle Market Development Foundation Expansion of SME lending portfolio $19,000,000 Finance

Isra

Corporation Sole Episcopal Church of Jerusalem & 

the Middle East

Mixed-use building $4,500,000 Finance

Jord

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$252,500 Insurance

CHF International Arab Bank PLC Origination of low-income mortgages $100,000,000 Finance

CHF International Cairo Amman Bank Origination of low-income mortgages $50,000,000 Finance

CHF International Housing Bank for Trade & Finance Origination of low-income mortgages $100,000,000 Finance

General Electric Capital Corporation Disi Water PSC Water conveyance system $250,000,000 Finance

General Electric Capital Corporation Disi Water PSC Water conveyance system $150,000,000 Insurance
2009 OPIC annual repo

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20

US Sponsor/Insured Investor Project Name Project Descripti

Keny

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$182,040 Insurance

Citibank, N.A. Kenya Women Finance Trust Ltd* Expansion of microfinance portfolio $7,221,500 Finance

Leban

Citibank N.A. Bank Audi Sal-Audi Saradar Group* Loans to SME’s/low & middle income mortgages/

consumer loans

$55,000,000 Finance

Citibank, N.A. Byblos Bank SAL* Loans to SME’s/low & middle income mortgages/

consumer loans

$34,000,000 Finance

National City Bank Bank Audi Sal-Audi Saradar Group Low and middle-income mortgages, SME and 

consumer loans

$7,500,000 Insurance

Liber

Board of Directors of AISM American International School of Monrovia Inc Renovation & expansion of K-8 grade school $1,600,000 Finance

Christopher Jorgensen & James Steele Buchanan Renewables (Monrovia) Power Inc 35 Megawatt rubber wood fired electric 

generation facility

$111,700,000 Finance

James Steele & Christopher Jorgensen Buchanan Renewables Fuel Inc Process of unproductive rubber trees into 

wood chips

$15,000,000 Finance

RLJ Companies, LLC RLJ Liberia, LLC Hotel construction and operation $9,260,000 Finance

RLJ Liberia US, LLC RLJ Liberia, LLC Hotel construction and operation $2,781,000 Insurance

Ma

American International School of Bamako 

Foundation

American International School of Bamako Expansion & relocation of Pre-K-12 school $6,800,000 Finance

Moro

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$187,500 Insurance

Mozambiq

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$370,326 Insurance

Niger

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$732,795 Insurance

Citibank, N.A. American International School Lagos* Development & construction of new 

high school facility

$13,500,000 Finance

ContourGlobal Solutions North America LLC ContourGlobal Solutions (Nigeria) Ltd. Electric services $5,850,000 Insurance

Eligible US Investors Capital Alliance Property Investment Co., LP Closed-end investment fund $50,000,000 Investment 

Funds

South Afr

AIG Global Emerging Markets Fund II LP Blue Financial Services Ltd. Finance expansion of SME loan portfolio $70,000,000 Finance

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$66,691 Insurance

Tanz

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$13,678 Insurance

Tog

ContourGlobal LLC ContourGlobal Togo 100 MW power-generating facility $146,250,000 Finance

ContourGlobal Togo LLC ContourGlobal Togo S.A. 100 MW power-generating facility $25,575,940 Insurance

Ug

Michael Landau/Eli Popack Mapswitch Uganda Ltd Expansion of financial-telecom services business $3,800,000 Finance

West Bank 

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$276,052 Insurance

Cooperative Housing Foundation AMAL-Bank of Palestine Mortgage Corp I Develop low & middle-income housing 

finance program

$59,690,000 Finance

Cooperative Housing Foundation AMAL-Bank of Palestine Mortgage Corp II Develop low & middle-income housing 

finance program

$99,490,000 Finance

Cooperative Housing Foundation AMAL-Cairo Amman Bank Mortgage Corp I Develop low & middle-income housing 

finance program

$119,390,000 Finance

Cooperative Housing Foundation AMAL-Cairo Amman Bank Mortgage Corp II Develop low & middle-income housing 

finance program

$46,430,000 Finance

Zam

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$299,843 Insurance
PAGE

WWW.OPIC.GOV 21

US Sponsor/Insured Investor Project Name Project Descripti

Africa and the Middle Ea

Eligible US Investors Millennium Global Africa Opportunities Fund Direct equity fund $100,000,000 Investment 

Funds

Emerging Capital Partners LLC ECP Africa FIII Investment LLC Direct equity fund $60,000,000 Investment 

Funds

Greylock Capital Associates, LLC Greylock Africa Opportunity Fund I Direct equity fund $67,000,000 Investment 

Funds

ShoreBank International Ltd. BRAC Africa Microfinance, Ltd (Class A & B) Lending to BRAC-owned microfinance institutions $28,000,000 Finance

AS AND 

Afghanist

Bangla

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$548,040 Insurance

In

Citibank, N.A. Asa Grama Vidiyal Trust* Expansion of microfinance portfolio $2,333,100 Finance

Citibank, N.A. Bhartiya Samruddhi Finance Ltd* Expansion of microfinance portfolio $3,888,500 Finance

Citibank, N.A. Friends of Women’s World Banking* Expansion of microfinance portfolio $3,888,500 Finance

Citibank, N.A. Grameen Financial Services Private Ltd* Expansion of microfinance portfolio $2,333,100 Finance

Citibank, N.A. SKS Microfinance PVT Ltd* Expansion of microfinance portfolio $3,888,500 Finance

Citibank, N.A. Spandana Sphoorty Financials Ltd* Expansion of microfinance portfolio $16,665,000 Finance

Citibank, N.A. Spandana Sphoorty Financials Ltd* Expansion of microfinance portfolio $3,888,500 Finance

First Carlyle Growth VI Repco Home Finance Limited Mortgage finance facility $30,000,000 Finance

Charles Ransler, IV Husk Power Systems, Inc Biomass waste to energy $750,000 Finance

Saratoga Partners IV, L.P. Cema Electric Lighting Products India PVT Ltd Expansion & operation of lighting 

production facility

$10,000,000 Finance

Mr.Inderpreet Wadhwa Azure Power Punjab Private Limited 2MW photovoltaic solar power project $6,230,000 Finance

Mongol

Wallace M. Mays IKH Tokhoirol XXK Development of gold mine $10,000,000 Finance

Philippine

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$468,647 Insurance

Microvest I, LP Seedfinance Corporation Microfinance on-lending $1,000,000 Insurance

Sa

Citibank N.A. Digicel (Samoa) Limited* Expansion of cellular telephone network $2,778,750 Finance

Vietna

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$171,315 Insurance

WM Capital Australis Aquaculture LLC Expansion of barramundi fish 

aquaculture operations

$5,400,000 Finance

EURP

Armeni

Bankworld, Inc. Ardshininvestbank CJSC Expansion of Ardshininvestbank’s SME 

loan portfolio

$9,750,000 Finance

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$4,441 Insurance

Azerbai

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$416,556 Insurance

Financial Services Volunteer Corps Turanbank OJSC Expansion of SME lending portfolio $7,312,500 Finance

Microvest I, L.P. Inkishaf unchun Maliyye (“FinDev”) Microfinance on-lending $1,000,000 Insurance

Microvest I, L.P. Norwegian Microcredit LLC (“Normicro”) Microfinance on-lending $750,000 Insurance

Microvest I, L.P. Credagro Microfinance on-lending $3,000,000 Insurance

Bosnia and Herz

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$979,386 Insurance

Microvest I, L.P. Mikrokreditna Organizacija MI-BOSPO Microfinance on-lending $1,263,436 Insurance

*

,. Information has been Redacted in accordance with the two principled exceptions of the Foreign Aid Transparency and Accountability Act 

(FATAA) of 2016; including the health and security of implementing partners, as well as national interest of the United States.. 
2009 OPIC annual repo

PAGE

22

US Sponsor/Insured Investor Project Name Project Descripti

Georg

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$183,972 Insurance

Citibank, N.A. Joint Stock Company TBC Bank* Loans to SME’s/low & middle income mortgages/

consumer loans

$40,000,000 Finance

Citibank, NA Joint Stock Company TBC Bank Fund low & middle income mortgages, SME & 

consumer loans

$4,276,360 Insurance

Firebird Management, LLC Joint Stock Company Bank of Georgia Funding of tier II capital (subordinated loan) $10,000,000 Finance

Firebird Management, LLC Joint Stock Company Bank of Georgia Expansion of residential mortgage portfolio $29,000,000 Finance

Firebird Avrora Advisors LLC Joint Stock Company SB Iberia Construction of moderate income apartments $6,300,000 Finance

Firebird Avrora Advisors LLC Joint Stock Company Iberia Real Estate Construction of apartment housing projects $10,000,000 Finance

Edward & Kay Sturdivant/Jerome T. Jerome/

Jerome Baruffi

Sante GMT Products LLC Expansion of dairy manufacturing facility $10,000,000 Finance

Sterling Crum and Family/Rick Dortch/Keith 

Barnes

GMT Mtatsminda, LLC Renovation & restoration of multifunctional 

business complex

$10,000,000 Finance

Sterling Crum and Family/Rick Dortch/Keith 

Barnes

GMT Real Estate, LLC Mixed-use building complex $40,000,000 Finance

Kazakh

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$39,872 Insurance

Citibank, N.A. Joint Stock Company Bank Centercredit* Expansion of low & middle-income 

mortgage portfolio

$30,000,000 Finance

Citibank, N.A. Joint Stock Company Halyk Savings Bank* Expansion of low & middle-income 

mortgage portfolio

$30,000,000 Finance

Mol

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$190,201 Insurance

Western NIS Enterprise Fund Banca de Finante si Comert S.A. Expansion of FinComBank’s SME lending $6,000,000 Finance

Pol

Amtech U.S., Inc Amtech SP.ZO.O Construction of green housing units $2,000,000 Finance

Roma

Cooperative Housing Foundation Express Finance-Institutie Financiara Neban Expansion of microfinance & SME lending portfolio $10,000,000 Finance

Dorian Klein Verida Credit IFN S.A. Funding mortgage loans for purchase of 

residential housing

$30,000,000 Finance

Romanian American Enterprise Fund Capa Finance S.A. Expansion of microfinance & SME lending portfolio $25,000,000 Finance

Russ

Peter E. Gerwe Zao Star Networks Expansion of internet service business $28,000,000 Finance

Western Retail Development LLC PJ Development LLC Building 26 Papa John pizza stores in Moscow $10,000,000 Finance

Turk

Mr. Tunga Arcan Celengil/Mr. Tugrul Celengil Fersan Fermantasyon Urun San. ve Tic.A.S Expansion of canned fruit & vegetable 

production facility

$9,750,000 Finance

Chinook Sciences International LLC DT Metal Geri Kazanim Teknolojileri Sanayi Aluminum recycling plant $30,000,000 Finance

General Electric Company Turkiye Garanti Bankasi A.S. Expansion of SME lending portfolio $100,000,000 Finance

Paladin Realty Partners, LLC Paladin Realty Eurasia Investors, L.P. Affordable housing development fund $35,000,000 Investment 

Funds

Uzbekis

Erik Brooks Owen O&S Consulting, LLC Remodeling of 3 hotels $840,000 Finance

Europe and Eurasia 

CSI Leasing, Inc. CSI Leasing Polska SP.Z.O.O et al Expansion of IT leasing activities $20,000,000 Finance

LATINME

Boli

Microvest I, LP Fundación Boliviana Para El Desarrollo De 

La Mujer

Microfinance on-lending $500,000 Insurance

Microvest I, LP Fundación Boliviana Para El Desarrollo De 

La Mujer

Microfinance on-lending $250,000 Insurance

Braz

CSI Latina Financial, Inc. CSI Latina Financial, Inc/CSI Latina Arrenda Expansion of IT leasing activities $10,000,000 Finance

Chile

Driscoll Strawberry Associates, Inc. TB-Driscoll Strawberry Associates, Inc Expansion of blueberry production $21,000,000 Finance
PAGE

WWW.OPIC.GOV 23

US Sponsor/Insured Investor Project Name Project Descripti

Colombi

Sharon Parks Gurtler and Charles Daniel Parks Parko Services, S.A.. Drilling of 20 oil wells $2,800,000 Finance

Dr. Sadanand Joshi/Claudette Joshi Joshi Technologies International Inc Drilling of 20 oil wells $8,000,000 Finance

Costa 

The Alta Group, LLC Banco Improsa S.A. Finance expansion of SME lease portfolio $9,750,000 Finance

General Electric Company Banco Bac San Jose, S.A. (Tranche A) Expansion of low & middle-income 

mortgage lending

$50,000,000 Finance

General Electric Company Banco Bac San Jose, S.A. (Tranche B) Expansion of SME lending portfolio $10,000,000 Finance

Ecu

Microvest I, LP D-Miro, Misión Alianza-Ecuador, 

Vía Perimetral, Isla

Microfinance on-lending $1,000,000 Insurance

Microvest I, LP D-Miro, Misión Alianza-Ecuador, 

Vía Perimetral, Isla

Microfinance on-lending $1,000,000 Insurance

Microvest I, LP D-Miro, Misión Alianza-Ecuador, 

Vía Perimetral, Isla

Microfinance on-lending $500,000 Insurance

Microvest I, LP D-Miro, Misión Alianza-Ecuador, 

Vía Perimetral, Isla

Microfinance on-lending $250,000 Insurance

Microvest I, LP D-Miro, Misión Alianza-Ecuador, 

Vía Perimetral, Isla

Microfinance on-lending $500,000 Insurance

El Sa

General Electric Company Banco de America Central, S.A. (Tranche A) Expansion of low & middle-income 

mortgage lending

$35,000,000 Finance

General Electric Company Banco de America Central, S.A. (Tranche B) Expansion of SME lending portfolio $12,500,000 Finance

Guate

General Electric Company Banco de America Central, S.A. (Tranche A) Expansion of low & middle-income 

mortgage portfolio

$30,000,000 Finance

General Electric Company Banco de America Central, S.A. (Tranche B) Expansion of SME lending portfolio $5,000,000 Finance

Hai

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$94,282 Insurance

Seaboard Overseas Limited Les Moulins D’Haiti S.E.M. (LMH) Expansion of flour mill $6,594,818 Insurance

Hondu

Citibank, N.A. Digicel Honduras S.A. de CV* Cellular telecommunications network $15,000,000 Finance

General Electric Company Banco de America Central Honduras, 

S.A.(Tranche A)

Expansion of low & middle-income 

mortgage lending

$20,000,000 Finance

General Electric Company Banco de America Central Honduras, 

S.A.(Tranche B)

Expansion of SME lending portfolio $17,500,000 Finance

Jam

American International School of Kingston 

Foundation, Inc.

American International School of Kingston Relocation & expansion of campus for K-12 school $3,150,000 Finance

Mexi

The Alta Group, LLC Docuformas S.A.P.I. de C.V. Expansion of SME leasing portfolio $7,800,000 Finance

Cambridge Liquidity Partners, Inc. & Omidyar

Tufts Microfinance Fund

Vehiculos Liquidos Financieros Sapi de C.V. 

Sofom E.N.R

Liquidity to non-bank institutions for 

micro & SME loans

$25,000,000 Finance

CSI Latina Financial, Inc. CSI Latina Financial, Inc/CSI Leasing Mexic Expansion of IT leasing activities $10,000,000 Finance

MBIA Insurance Corporation Promotora de Infraestructura Registral, S.A. Local capital markets bond issuance $250,000,000 Finance

Nica

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$38,212 Insurance

General Electric Company Banco de America Central, S.A. (Tranche A) Expansion of low & middle-income 

mortgage lending

$10,000,000 Finance

General Electric Company Banco de America Central, S.A. (Tranche B) Expansion of SME lending portfolio $2,500,000 Finance

Microvest I, L.P. Fondo Nicaraguense para el Desarrollo 

Comunitario

Microfinance on-lending $750,000 Insurance

Pa

Citibank, N.A. Digicel Panama S.A.* Greenfield mobile telecom company $15,000,000 Finance

General Electric Company International Bank, Inc (Tranche A) Low & middle-income mortgage lending $5,000,000 Finance

General Electric Company International Bank, Inc (Tranche B) Expansion of SME lending portfolio $2,500,000 Finance

Para

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$67,815 Insurance
2009 OPIC annual repo

PAGE

24

US Sponsor/Insured Investor Project Name Project Descripti

Per

Chemonics International Chemonics Global program of emerging market technical 

assistance contracts

$2,857,300 Insurance

Michael Deutschman & Gino Picasso Globokas Peru, S.A.C. Expansion of financial-telecom services business $2,500,000 Finance

GTV GloboKasNet LLC GloboKas Peru S.A.C. Correspondent agent network to provide electronic 

financial services to rural & semi-urban population

$2,500,000 Insurance

Latin Americ

the Caribbean Regi

Alsis International Holdings, LLC Fondo Alsis Mexico de Vivienda de Interes SO Closed-end investment fund $50,000,000 Investment 

Funds

CSI Latina Financial, Inc. CSI Latina Financial, Inc/CSI Leasing de Cent Expansion of IT leasing activities $10,000,000 Finance

Global Partnerships Global Partnerships Microfinance Fund 

2008, LLC

Provide capital to expand MFI’s in Latin America 

(senior loan)

$1,500,000 Finance

Global Partnerships Global Partnerships Microfinance Fund 

2008, LLC

Provide capital to expand MFI’s in Latin America 

(subordinated loan)

$5,375,000 Finance

Paladin Realty Partners, LLC Paladin Realty Latin America Investors III Affordable housing development fund $65,000,000 Investment 

Funds

ALL O

Accion International Emergency Liquidity Facility, L.P. Expansion of emergency lending program to MFI’s $4,000,000 Finance

E+CO., Inc E+CO., Inc Loans to SMEs for small clean energy projects $10,000,000 Finance

MFX Solutions LLC MFX Solutions, Inc Guaranty to hedge provider to facilitate local 

currency lending to MFIs

$20,000,000 Finance

The Omidyar Network Microvest I, LP Fund medium & long-term senior loans to MFIs $10,000,000 Finance

VGF Advisers (US) LLC Virgin Green Fund Global I, L.P. Closed-end investment fund $100,000,000 Investment 

Funds

*Downstream transactions committed under framework agreements entered into during prior fiscal years.

FY2009 Investment Funds Portfolio

Fund Name Portfolio Company Description Country/Regio

Alsis Latin America Fund, L.P. BBVA-Bancomer NPL Portfolio Financial Services Mexico

Protexa Oil & Gas Maintenance Services Mexico

Asia Development Partners II, L.P. Orient Green Power Pte. Ltd. Renewable Energy India

ECP MENA Growth FII, LLC Agromed Agribusiness Tunisia

BACIM Financial Services Mauritania

Finaccess Holding Data & IT Services Morocco

North Africa Consumer Goods Consumer Products - Personal Care Tunisia

Société SHORESAL Real Estate Algeria

Paladin Realty Latin America Investors II, L.P. Arinpa Homebuilding Platform Housing Mexico

Botafogo Trade Center Real Estate Brazil

P2K Homebuilding Platform Housing Chile

Paladippsa Homebuilding Platform Housing Mexico

PM Homes Homebuilding Platform Housing Brazil

REDI Homebuilding Platform Housing Mexico

Tucan Homebuilding Platform Housing Peru

Russia Partners II O Series, L.P. Gameplay.tv Media Russia

Southeast Europe Equity Fund II, L.P. Ana Gida Consumer Products - Edible Oil Turkey
PAGE

WWW.OPIC.GOV 25

opic countries and eas   As of Sept

AFRA 

Algeria 

Angola 

Bahrain 

Benin 

Botswana 

Burkina Faso 

Burundi 

Cameroon 

Cape Verde 

Central African Republic 

Chad 

Comoros 

Congo 

Congo, Democratic Republic of 

Côte d’Ivoire 

Djibouti 

Egypt 

Equatorial Guinea 

Eritrea 

Ethiopia 

Gabon 

Gambia 

Ghana 

Guinea 

Guinea-Bissau 

Iraq 

Israel 

Jordan 

Kenya 

Kuwait 

Lebanon 

Lesotho 

Liberia 

Madagascar 

Malawi 

Mali 

Mauritania 

Mauritius 

Morocco 

Mozambique 

Namibia 

Niger 

Nigeria 

Oman 

Rwanda 

São Tomé and Príncipe 

Senegal 

Sierra Leone 

Somalia 

South Africa 

Swaziland 

Tanzania 

Togo 

Tunisia 

Uganda 

West Bank and Gaza 

Yemen 

Zambia 

Zimbabwe

Asia and the P

Afghanistan 

Bangladesh 

Cambodia 

Cook Islands 

East Timor 

Fiji 

India 

Indonesia 

Kiribati 

Laos 

Malaysia 

Marshall Islands 

Micronesia, Federated States of 

Mongolia 

Nepal 

Pakistan 

Palau 

Papua New Guinea 

Philippines 

Samoa 

Singapore 

South Korea 

Sri Lanka 

Taiwan 

Thailand 

Timor-Leste 

Tonga 

Vietnam 

Europe and Eu

Albania 

Armenia 

Azerbaijan 

Bosnia and Herzegovina 

Bulgaria 

Croatia 

Cyprus 

Czech Republic 

Estonia 

Georgia 

Greece 

Hungary 

Ireland 

Kazakhstan 

Kosovo 

Kyrgyzstan 

Latvia 

Lithuania 

Macedonia 

Malta 

Moldova 

Montenegro 

Northern Ireland 

Poland 

Portugal 

Romania 

Russia 

Serbia 

Slovakia 

Slovenia 

Tajikistan 

Turkey 

Turkmenistan 

Ukraine 

Uzbekistan

Latin America and

Caribbea

Anguilla 

Antigua and Barbuda 

Argentina 

Aruba 

Bahamas 

Barbados 

Belize 

Bolivia 

Brazil 

Chile 

Colombia 

Costa Rica 

Dominica 

Dominican Republic 

Ecuador 

El Salvador 

French Guiana 

Grenada 

Guatemala 

Guyana 

Haiti 

Honduras 

Jamaica 

Mexico 

Netherlands Antilles 

Nicaragua 

Panama 

Paraguay 

Peru 

St. Kitts and Nevis 

St. Lucia 

St. Vincent and the Grenadines 

Suriname 

Trinidad and Tobago 

Turks and Caicos 

Uruguay 

OPIC services encourage U.S. private investment in some 150

countries and areas around the world, contributing to economic 

growth at home and abroad.

OPIC services are generally available in the countries and areas 

listed below. From time to time, statutory and policy constraints

may limit the availability of OPIC services in certain countries, or 

countries where services were previously unavailable may become 

eligible. Investors are urged to contact OPIC directly or check the 

website: www.opic.gov/doing-business/where-we-work for upto-date information regarding the availability of OPIC services in 

specific countries, as well as information on the availability of OPIC 

services in countries not listed.
 

KPMG LLP 

2001 M Street, NW 

Washington, DC 20036 

Independent Auditors’ Report on Financial Statements 

To the Board of Directors 

Overseas Private Investment Corporation: 

We have audited the accompanying balance sheets of the Overseas Private Investment Corporation (OPIC) 

as of September 30, 2009 and 2008, and the related statements of income, capital and retained earnings, 

and cash flows for the years then ended. These financial statements are the responsibility of OPIC’s 

management. Our responsibility is to express an opinion on these financial statements based on our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of 

America; the standards applicable to financial audits contained in Government Auditing Standards, issued 

by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 

No. 07-04, Audit Requirements for Federal Financial Statements, as amended. Those standards and OMB 

Bulletin No. 07-04 require that we plan and perform the audits to obtain reasonable assurance about 

whether the financial statements are free of material misstatement. An audit includes consideration of 

internal control over financial reporting as a basis for designing audit procedures that are appropriate in the 

circumstances, but not for the purpose of expressing an opinion on the effectiveness of OPIC’s internal 

control over financial reporting. Accordingly, we express no such opinion. An audit also includes 

examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 

assessing the accounting principles used and significant estimates made by management, as well as 

evaluating the overall financial statement presentation. We believe that our audits provide a reasonable 

basis for our opinion. 

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of the Overseas Private Investment Corporation as of September 30, 2009 and 2008, and 

the results of operations, and its cash flows for the years then ended in conformity with U.S. generally 

accepted accounting principles. 

In accordance with Government Auditing Standards, we have also issued our reports dated November 12, 

2009, on our consideration of OPIC’s internal control over financial reporting and our tests of its 

compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. 

The purpose of those reports is to describe the scope of our testing of internal control over financial 

reporting and compliance and the results of that testing, and not to provide an opinion on the internal 

control over financial reporting or on compliance. Those reports are an integral part of an audit performed 

in accordance with Government Auditing Standards and should be read in conjunction with this report in 

assessing the results of our audits. 

November 12, 2009 

KPMG LLP, a U.S. limited liability partnership, is the U.S. 

member firm of KPMG International, a Swiss cooperative. 
PAGE

WWW.OPIC.GOV 27

Assets 2009 2008

Fund Balance with U.S. Treasury (notes 2 and 4) $ 549,470 $ 554,818

U.S. Treasury securities, at amortized cost plus related receivables (notes 2 and 7) 4,898,512 4,767,168

Direct loans outstanding, net (notes 2 and 10) 808,363 617,356

Accounts receivable resulting from investment guaranties, net (notes 2 and 11) 50,523 56,786

Assets acquired in insurance claims settlements, net (notes 2 and 11) 40,946 65,355

Guaranty receivable (notes 2 and 18) 233,959 152,485

Accrued interest and fees and other 25,496 22,734

Furniture, equipment and leasehold improvements at cost less accumulated 

 depreciation and amortization of $14,566 in FY2009 and $14,263 in FY2008 (note 2) 4,069 2,399

 Total assets $ 6,611,338 $ 6,239,101

Liabilities, Capital, and Retained Earni

Liabilities:

 Reserve for political risk insurance (note 9) $ 300,000 $ 300,000

 Reserve for investment guaranties (note 10) 676,422 625,291

 Accounts payable and accrued expenses 5,986 5,572

 Guaranty liability (notes 2 and 18) 233,959 152,485

 Customer deposits and deferred income 40,517 37,145

 Borrowings from U.S. Treasury, and related interest (note 6) 1,006,520 861,286

 Unearned premiums 10,590 12,600

 Deferred rent & rent incentives from lessor of $4,975 and $4,449 net of 

 accumulated amortization of $1,709 and $1,357 in FY2009 and FY2008 (note 14) 3,266 3,092

 Total liabilities 2,277,260 1,997,471

Contingent liabilities (notes 2 and 17)

Capital and retained earnings:

 Contributed capital $ 50,000 $ 50,000

 Credit funding (note 5) 111,056 115,765

 Interagency transfers (note 2) 10,810 19,499

 Retained earnings and reserves:

 Insurance (notes 9 and 12) 839,271 1,049,510

 Guaranty (notes 10 and 12) 3,322,941 3,006,856

4,334,078 4,241,630

 Total liabilities, capital, and retained earnings $ 6,611,338 $ 6,239,101

See accompanying notes to financial statements.

BALANCE

Overseas Private Investment Corporation—September 30, 2009 and 2008 ($ in thousands)
2009 OPIC annual repo

PAGE

28

Revenues 2009 200

Political risk insurance premiums and fees (note 9) $ 17,415 $ 18,770

Investment financing interest and fees 149,053 184,495

Interest on finance program deposits 20,197 21,855

Other operating income — 1

Interest on U.S. Treasury securities 202,781 220,231

 Total revenues 389,446 445,352

Expense

Provisions for reserves:

 Political risk insurance (notes 2 and 9) $ (944) $ (15,169)

 Investment financing (notes 2, 10 and 11) 32,683 197,334

Salaries and benefits (note 15) 28,844 27,470

Rent, communications and utilities (note 14) 7,501 7,361

Contractual services 23,401 13,001

Travel 3,051 3,202

Interest on borrowings from U.S. Treasury (note 6) 50,356 43,669

Depreciation and amortization (note 2) 303 364

Other general and administrative expenses 1,698 1,619

 Total expenses 146,893 278,851

 Net income $ 242,553 $ 166,501

See accompanying notes to financial statements.

statements of 

Overseas Private Investment Corporation—Years ended September 30, 2009 and 2008 ($ in thousands)
PAGE

WWW.OPIC.GOV 29

Equity reserve

Contributed

capital

Credit

funding

Interagenc

transfers

Insurance

(notes 9 & 12)

Guaranty

(notes 10 & 12)

Retained

earnings Tota

Balance, Sept. 30, 2007   50,000   109,641 $ 11,472 $ 1,321,128 $ 3,058,454   — $ 4,550,6

Net income — — — (250, 091) 416,592 — 166,501

Return credit funding

 to U.S. Treasury — (3,700) — — (552,259) — (555,959)

Credit funding received from:

 Accumulated earnings — 52,000 — (23,500) — (28,500) —

 Credit appropriations — 70,393 — — — — 70,393

Credit funding used — (112,569) — — 84,069 28,500 —

Interagency transfers — — 8,027 1,973 — — 10,000

Balance, Sept. 30, 2008   50,000   115,765 $ 19,499 $ 1,049,510 $ 3,006,856   — $ 4,241,6

Net income — — — (161,928) 404,481 — 242,553

 Return credit funding

 to U.S. Treasury — (18,370) — — (223,122) — (241,492)

Intraagency transfers (30,000) 30,000 —

Credit funding received from:

 Accumulated earnings — 59,360 — (29,000) — (30,360) —

 Credit appropriations — 89,387 — — — — 89,387

Credit funding used — (135,086) — — 104,726 30,360 —

Interagency transfers — — (8,689) 10,689 — — 2,000

Balance, Sept. 30, 2009   50,000   111,056 $ 10,810 $ 839,271 $ 3,322,941   — $ 4,334,0

See accompanying notes to financial statements.

statements of capital and ret

Overseas Private Investment Corporation—Years ended September 30, 2009 and 2008 ($ in thousands)
2009 OPIC annual repo

PAGE

30

2009 2008

Cash flows from operating activities:

 Net income $ 242,553 $ 166,501

 Adjustments to reconcile net income to net cash provided by operating activities:

 Provisions for:

 Political risk insurance (944) (15,169)

 Investment financing 32,683 197,334

 Amortization of premiums on U.S. securities 13,268 7,663

 Accretion of discounts on U.S. securities (11,733) (14,460)

 Amortization of deferred rent and rental incentives 169 248

 Increase in rent incentives 5 21

 Depreciation and amortization 303 364

 (Increase) decrease in operating assets:

 Accrued interest and fees and other 4,742 10,573

 Guaranty receivable (81,474) 15,995

 Assets acquired in insurance claims settlements (206) (1,980)

 Recoveries on assets acquired in insurance claims settlements 25,559 25,858

 Assets acquired in finance claims settlements (11,654) (51,455)

 Recoveries on assets acquired in finance claims settlements 11,895 12,364

 Increase (decrease) in operating liabilities:

 Accounts payable and accrued expenses 414 48

 Customer deposits and deferred income 3,372 (5,390)

 Guaranty liability 81,474 (15,995)

 Unearned premiums (2,010) (727)

 Cash provided by operating activities 308,416 331,793

Cash flows from investing activities:

 Sale and maturity of U.S. Treasury securities 1,231,877 1,013,194

 Purchase of U.S. Treasury securities (1,372,260) (1,234,400)

 Repayment of direct loans 104,603 92,051

 Disbursement of direct loans (271,139) (77,628)

 Acquisition of furniture and equipment (1,973) (732)

 Cash used in investing activities (308,892) (207,515)

Cash flows from financing activities:

 Return credit funding to U.S. Treasury (241,493) (555,959)

 Interagency transfers 2,000 10,000

 Credit appropriations 89,387 70,393

 Credit reform borrowings from U.S. Treasury 145,234 67,742

 Cash used in financing activities (4,872) (407,824)

Net decrease in cash (5,348) (283,546)

Fund Balance with U.S. Treasury at beginning of year 554,818 838,364

Fund Balance with U.S. Treasury at end of year $ 549,470 $ 554,818

See accompanying notes to financial statements.

Statements of C

Overseas Private Investment Corporation—Years ended September 30, 2009 and 2008 ($ in thousands)
PAGE

WWW.OPIC.GOV 31

Notes to Financial sttements  September 30, 20

(1) Statement of Corpor

The Overseas Private Investment Corporation (OPIC) is a selfsustaining U.S. Government corporation created under the Foreign Assistance Act of 1961 (FAA), as amended. OPIC facilitates 

U.S. private investment in developing countries and emerging 

market economies, primarily by offering political risk insurance, 

investment guaranties, and direct loans. As a government corporation, OPIC is not subject to income tax.

(2) Summary of Signi

Accounting Polici

Basis of Presentation  These financial statements have bee

prepared to report the financial position, results of operations, and 

cash flows of OPIC. OPIC’s accounting policies conform to accounting principles generally accepted in the United States of America. 

OPIC’s financial statements are presented on the accrual basis 

of accounting. Under the accrual basis, revenues are recognized 

when earned, and expenses are recognized when a liability is 

incurred, without regard to receipt or payment of cash.

Fund Balance with U.S. Treasry:  Substantially all of OP

receipts and disbursements are processed by the U.S. Treasury 

which, in effect, maintains OPIC’s bank accounts. For purposes of 

the Statement of Cash Flows, Fund Balance with U.S. Treasury is 

considered cash.

Investment in U.S. Treasury Securites:  By statute, OPI

authorized to invest funds derived from fees and other revenues 

related to its insurance and preinvestment programs in U.S. 

Treasury securities. Investments are carried at face value, net of 

unamortized discount or premium, and are held to maturity. OPIC 

has the ability and intent to hold its investments until maturity or 

until the carrying cost can be otherwise recovered.

Assets Acquired in Investment Guaranty and Insuran

Claims Settlements: Assets acquired in claims settlements are

valued at the lower of management’s estimate of the net realizable value of recovery or the cost of acquisition. 

OPIC acquires foreign currency in settlement of inconvertibility 

claims when an insured foreign enterprise is unable to convert 

foreign currency into U.S. dollars, as well as in some direct loan and 

investment guaranty collection efforts. The initial U.S. dollar equivalent is recorded and revalued annually until the foreign currency is 

utilized by OPIC or other agencies of the United States Government, 

or until it is exchanged for U.S. dollars by the foreign government.

Allowances: The allowances are based on management’s 

periodic evaluations of the underlying assets. In its evaluation, 

management considers numerous factors, including, but not 

limited to, general economic conditions, asset composition, prior 

loss experience, the estimated fair value of any collateral, and the 

present value of expected future cash flows.

Depreciation and Amortization: OPIC capitalizes property and 

equipment at historical cost for acquisitions exceeding $5,000. 

Depreciation and amortization of fixed assets, leasehold improvements, and lease incentives are computed using the straight-line 

method over the estimated useful life of the asset or lease term, 

whichever is shorter, with periods ranging from 5 to 15 years. 

Reserves for Political Risk Insurance and Invest

Guaranties: The reserves for political risk insurance and investment guaranties provide for losses inherent in those operations

using the straight-line method. 

These reserves are general reserves, available to absorb losses 

related to the total insurance and guaranties outstanding, 

which are off-balance-sheet commitments. The reserves are 

increased by provisions charged to expense and decreased for 

claims settlements. The provisions for political risk insurance 

and investment guaranties are based on management’s evaluation of the adequacy of the related reserves. This evaluation 

encompasses consideration of past loss experience, changes in 

the composition and volume of the insurance and guaranties 

outstanding, worldwide economic and political conditions, and 

project-specific risk factors. Also, in the political risk insurance 

reserve evaluation, OPIC takes into consideration losses incurred 

but not yet reported.

FASB Accounting Standards Codification Topic 460 for

Guarantee Topic (FASB ASC 460): FASB ASC 460 requires

upon issuance of a guaranty, the guarantor must disclose and 

recognize a liability for the fair value of the obligation it assumes under that guaranty. The initial recognition and measurement requirement of FASB ASC 460 applies only to guaranties 

issued or modified after December 31, 2002. OPIC’s initial 

guaranty obligation reported, represents the fair value of the 

investment guaranties. This obligation is reduced over the term 

of the investment guaranty agreements, as OPIC is released 

from its obligation.

Revenue Recognition  Facility fees are received in advance an

recognized as deferred income, then amortized over the applicable 

loan period using the straight-line method. Interest on loans and 

guaranty fees on investment guaranties are accrued based on the 

principal amount outstanding. Revenue from both loan interest 

payments and guaranty fees that is more than 90 days past due 

is recognized only when cash is received. Revenue from political 

risk insurance premiums is recognized over the contract coverage 

period. Accretion of premium and discount on investment securities is amortized into income under a method approximating the 

effective yield method.

Interagency transfers: OPIC periodically receives funding from

other U.S. Government agencies to be used to support various 

programs and initiatives.
2009 OPIC annual repo

PAGE

32

Use of Estimates  The preparation of financial statements require

management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent 

assets and liabilities at the date of the financial statements, and 

the reported amounts of revenue and expenses during the reporting 

period. Actual results could differ from these estimates.

Commitments and Contingencies: Liabilities from loss contingencies, other than those related to political risk insurance 

and investment guaranties, arising from claims, assessments, 

litigation, fines and penalties, and other sources, are recorded 

when it is probable that a liability has been incurred and the 

amount of the assessment and/or remediation can be reasonably 

estimated. Loss contingencies that do not meet these criteria, but 

are reasonably possible and estimable are not accrued, but are 

disclosed in Note 17.

(3) Intragovern

Financial Activi

OPIC, as a U.S. Government corporation, is subject to financial 

decisions and management controls of the Office of Management 

and Budget. As a result of this relationship, OPIC’s operations may 

not be conducted, nor its financial position reported, as they would 

be if OPIC were not a government corporation. Furthermore, in 

accordance with international agreements relating to its programs, 

foreign currency acquired by OPIC can be used for U.S. Government expenses. This constitutes an additional means, which would 

otherwise be unavailable, by which OPIC can recover U.S. dollars 

with respect to its insurance and investment financing programs.

(4) Fund Balance with U.

OPIC is restricted in its uses of certain cash balances, as described 

below. The Fund Balance with U.S. Treasury as of September 30, 

2009 and 2008 consists of the following (dollars in thousands):

2009 2008

Restricted:

Pre-Credit reform $ 1,537 7

Credit reform 541,965 544,549

Interagency fund transfers 1 1

Unrestricted 5,967 10,261

Total $ 549,470 554,818

The Federal Credit Reform Act of 1990 established separate 

accounts for cash flows associated with investment financing activity approved prior to implementation of the Act and 

investment financing activity subject to the Act. With the advent 

of Credit Reform, OPIC is not permitted to invest its pre-Credit 

Reform cash balances. These balances grow over time, and when 

they are determined to be no longer needed for the liquidation 

of the remaining pre-Credit Reform direct loans and investment 

guaranties, they are transferred to OPIC’s unrestricted noncredit 

insurance account. In 2008, OPIC transferred $625,000 to the 

noncredit insurance account. There was no transfer in 2009. 

Credit Reform balances are also maintained in the form of uninvested funds. The U.S. Treasury pays OPIC interest on those cash 

balances except for undisbursed credit funding. 

(5) Credit Fundng  OPIC’s finance activities are subject to the Federal Credit Ref

Act of 1990, which was implemented as of October 1, 1991. Credit 

Reform requires agencies to estimate the long-term cost to the 

government of each fiscal year’s new credit transactions and 

to obtain funding through the appropriations process equal to 

the net present value of such costs at the beginning of the year. 

OPIC’s credit funding is available for three years. In addition, the 

Act requires the administrative costs related to its credit program 

to be displayed.

In fiscal year 2009, OPIC’s appropriations legislation authorized the 

corporation to use $29 million of its accumulated earnings to cover 

the future costs of credit transactions committed in fiscal years 

2009 through 2011. In fiscal year 2008, OPIC was authorized to use 

$23.5 million to cover commitments in fiscal years 2008 through 

2010. In addition to the credit funding allocated directly to OPIC 

through the appropriations process, OPIC has received a total of 

$67 million in net transfers from other agencies to be used exclusively to finance projects in the New Independent States (NIS).

The following table shows the status of funding for credit activities (dollars in thousands):

2009 2008

Balance carried forward $ 115,765 109,641

Upward reestimates 89,387 70,393

Transferred from earnings 59,360 52,000

Expired credit funding (18,370) (3,700)

Credit funding used (135,086) (112,569)

Credit funding remaining $ 111,056 115,765

Changes in financial and economic factors over time can affect 

the subsidy estimates made at the time of loan and guaranty 

commitments. Therefore, in accordance with OMB guidelines, 

OPIC reestimates subsidy costs for each group of loans and 

guaranties obligated in a given fiscal year to account for those 

changing factors. Reestimates that result in increases to subsidy 

costs are funded with additional appropriated funds that are 

made automatically available, while decreases to subsidy costs 

result in excess funds that are transferred to the U.S. Treasury. 

OPIC incurred increased subsidy costs of $89.4 million and $70.4 

million and decreases in subsidy costs of $175.7 million and 

$504.9 million in fiscal years 2009 and 2008, respectively.

(6) Borrowings From the U.

In accordance with the Federal Credit Reform Act of 1990, the 

portion of investment financing activities not funded through the 
PAGE

WWW.OPIC.GOV 33

appropriations process must be funded by borrowings from the 

U.S. Treasury. Borrowings for Credit Reform financings totaled 

$335.4 million in 2009 and $258.8 million in 2008, all of which 

have been disbursed. OPIC paid a total of $50.4 million and 

$43.7 million in interest to the U.S. Treasury during fiscal years 

2009 and 2008, respectively. Repayments of borrowings from the 

U.S. Treasury totaled $190.2 million in 2009 and $190.7 million 

in 2008. Future payments for borrowing outstanding at September 30, 2009 are as follows (dollars in thousands):

Payment due in

Fiscal Year 2010 $ 16,020

Fiscal Year 2011 40,465

Fiscal Year 2012 49,095

Fiscal Year 2013 42,641

Fiscal Year 2014 55,863

Thereafter 802,436

Total $ 1,006,520

(7) Investment in U.S. Treasur

The composition of investments and related receivables at September 30, 2009 and 2008 is as follows (dollars in thousands):

2009 2008

Investments, amortized cost $ 4,857,835 4,718,986

Interest receivable 40,677 48,182

Total $ 4,898,512 4,767,168

The amortized cost and estimated fair value of investments in 

U.S. Treasury securities are as follows (dollars in thousands):

 Sept. 30, 2009 Sept. 30,

Gross amortized cost $ 4,857,835 4,718,986

Gross unrealized gains 342,457 293,977

Gross unrealized losses (651) (207)

Estimated fair value $ 5,199,641 5,012,756

At September 30, 2009, the securities held had an interest range 

of .875% to 10.6% and a maturity period from one month to 

almost 19 years.

OPIC holds its securities to maturity. The amortized cost and estimated fair value of U.S. Treasury securities at September 30, 2009, 

by contractual maturity, are shown below (dollars in thousands):

Amortized Estimated

cost fair value

Due in one year or less $ 1,141,732 1,159,360

Due after one year through five years 2,796,459 2,910,165

Due after five years through 10 years 614,813 733,430

Due after 10 years 304,831 396,686

Total $ 4,857,835 5,199,641

(8) Statutory Limitations

Issuance of Insurance a

OPIC issues insurance and financing under a single limit for both 

programs, currently $29 billion, fixed by statute in the FAA. At 

September 30, 2009, OPIC’s insurance and finance programs have 

collectively utilized $13.3 billion.

(9) Political Risk Ins

Insurance revenues include the following components for the years 

ended September 30 (dollars in thousands):

2009 2008

Political risk insurance premiums $ 17,411 19,633

Misc. insurance income (expense) 4 (863)

Total insurance revenue $ 17,415 18,770

OPIC’s capital, allowance, retained earnings, and reserves available 

for insurance at September 30, 2009 and 2008 totaled $1.2 billion 

and $1.4 billion, respectively. Charges against retained earnings 

could arise from (A) outstanding political risk insurance contracts, 

(B) pending claims under insurance contracts, and guaranties issued in settlement of claims arising under insurance contracts. 

(a) Political Risk Insuran

OPIC insures investments for up to 20 years against three 

different risks: inconvertibility of currency, expropriation, 

and political violence. Insurance coverage against inconvertibility protects the investor from increased restrictions on the 

investor’s ability to convert local currency into U.S. dollars. 

Inconvertibility insurance does not protect against devaluation of a country’s currency.

Expropriation coverage provides compensation for losses 

due to confiscation, nationalization, or other governmental 

actions that deprive investors of their fundamental rights in 

the investment.

Insurance against political violence insures investors against 

losses caused by politically motivated acts of violence (war, 

revolution, insurrection, or civil strife, including terrorism 

and sabotage).

Under most OPIC insurance contracts, investors may obtain 

all three coverages, but claim payments may not exceed the 

single highest coverage amount. Claim payments are limited 

by the value of the investment and the amount of current 

coverage in force at the time of the loss and may be reduced 

by the insured’s recoveries from other sources. In addition, in 

certain contracts, OPIC’s requirement to pay up to the single 

highest coverage amount is further reduced by stop-loss and 

risk-sharing agreements. Finally, losses on insurance claims 

may be reduced by recoveries by OPIC as subrogee of the 

insured’s claim against the host government. Payments made 
2009 OPIC annual repo

PAGE

34

under insurance contracts that result in recoverable assets 

are reported as assets acquired in insurance settlements.

OPIC’s Maximum Contingent Liability at September 30, 2009 

and 2008 was $2.7 billion and $2.9 billion, respectively. 

This amount is OPIC’s estimate of maximum exposure to 

insurance claims, which includes standby coverage for which 

OPIC is committed but not currently at risk. A more realistic 

measure of OPIC’s actual exposure to insurance claims is the 

sum of each single highest “current” coverage for all contracts in force, or Current Exposure to Claims (CEC). OPIC’s 

CEC at September 30, 2009 and 2008 was $1.9 billion and 

$2.2 billion, respectively.

(b) Pending Claims

At both September 30, 2009 and 2008 OPIC had no material 

pending insurance claims. In addition to requiring formal applications for claimed compensation, OPIC’s contracts generally 

require investors to notify OPIC promptly of host government action that the investor has reason to believe is or may become a 

claim. Compliance with this notice provision sometimes results 

in the filing of notices of events that do not mature into claims.

OPIC does not record a specific liability related to such 

notices in its financial statements, due to the highly speculative nature of such notices, both as to the likelihood that the 

events referred to will ripen into any claims, and the amounts 

of compensation, if any, that may become due. Any claims 

that might arise from these situations are factored into the 

reserves for political risk insurance.

Changes in the reserve for political risk insurance during fiscal 

years 2009 and 2008 were as follows (dollars in thousands):

2009 2008

Beginning balance $ 300,000 315,000

Amount charged off (206) —

Increase (decrease) in provisions (944) (15,169)

Transfers from other reserves 1,150 169

Ending balance $300,000 300,000

(10) Investment Fi

OPIC is authorized to provide investment financing to projects 

through direct loans and investment guaranties. Project financing 

provides medium- to long-term funding through direct loans and 

investment guaranties to ventures involving significant equity 

and/or management participation by U.S. businesses. Project 

financing looks for repayment from the cash flows generated by 

projects, and as such, sponsors need not pledge their own general 

credit beyond the required project completion period.

Investment funds use direct loans and investment guaranties to 

support the creation and capitalization of investment funds that 

make direct equity and equity-related investments in new, expanding, or privatizing companies in emerging market economies. 

The fund managers, selected by OPIC, are experienced, private 

investment professionals. OPIC’s participation in a fund takes 

the form of long-term, secured loans and loan guaranties that 

supplement the fund’s privately raised equity. OPIC’s guaranty 

may be applied only to the debt portion of the fund’s capital and, 

for certain funds, to accrued interest on that debt. OPIC does not 

guaranty any of the fund’s equity, and all equity investments in 

OPIC-backed funds are fully at risk.

OPIC’s authorization to make direct loans and investment guaranties can be found in sections 234(c) and 234(b) of the FAA, 

respectively. Direct loans and investment guaranties are committed in accordance with the Federal Credit Reform Act of 1990, 

pursuant to which loan disbursements and any claim payments 

for these commitments have been funded through appropriations 

actions, borrowings from the U.S. Treasury, and the accumulation 

of earnings or collection of fees. In fiscal years 2009 and 2008, 

$29 million and $23.5 million was made available for credit 

funding costs. OPIC is in compliance with all relevant limitations 

and credit funding appropriations guidance. OPIC’s capital, allowances, retained earnings, and reserves available for claims on 

its investment financing at September 30, 2009 and 2008 totaled 

$4.1 billion and $3.8 billion, respectively.

Direct Loans: Direct loans are made for projects in developing and 

other eligible countries involving U.S. small business or cooperatives, on terms and conditions established by OPIC. Direct loan 

exposure at September 30, 2009 totaled $2.4 billion, of which approximately $929 million was outstanding. Direct loan exposure at 

September 30, 2008 totaled $1.2 billion, of which approximately 

$766 million was outstanding. Interest income is not accrued 

on direct loans that have payments that are more than 90 days 

past due. Loans with payments more than 90 days past due 

totaled $115.2 million at September 30, 2009 and $147.7 million 

at September 30, 2008. If interest income had been accrued on 

those loans, it would have approximated $4.6 million during fiscal 

year 2009 and $3.5 million during fiscal year 2008. Interest collected on delinquent loans and recorded as income when received 

amounted to $17.7 million and $6.9 million for fiscal years 2009 

and 2008, respectively.

Direct loans outstanding were as follows (dollars in thousands):

2009 2008

Direct loans outstanding $ 928,589 765,748

Allowance for uncollectible loans (120,226) (148,392)

Direct loans outstanding, net $808,363 617,356

Changes in the allowance for uncollectible loans during fiscal 

years 2009 and 2008 were as follows (dollars in thousands):
PAGE

WWW.OPIC.GOV 35

2009 2008

Beginning balance $ 148,392 153,151

Amounts charged off (5,065) (13,077)

Recoveries 1,513 163

(Decrease) increase in provisions (24,470) 9,344

Provision for capitalized interest (144) (1,189)

Ending balance $ 120,226 148,392

Investment Guaranties: OPIC’s investment guaranty covers the 

risk of default for any reason. In the event of a claim on OPIC’s 

guaranty, OPIC makes payments of principal and interest to the 

lender. These payments are recorded as accounts receivable 

resulting from investment guaranties. The loans that are guaranteed can bear either fixed or floating rates of interest and are 

payable in U.S. dollars. OPIC’s losses on payment of a guaranty 

are reduced by the amount of any recovery from the borrower, the 

host government, or through disposition of assets acquired upon 

payment of a claim. Guaranties extend from 5 to 21 years for 

project finance and from 10 to 18 years for investment funds.

Credit risk represents the maximum potential loss due to possible 

nonperformance by borrowers under terms of the contracts. 

OPIC’s exposure to credit risk under investment guaranties, 

including claim-related assets, was $8.2 billion at September 30, 

2009, of which $5 billion was outstanding. Of the $8.2 billion 

of exposure, $6 billion was related to project finance and $2.2 

billion was related to investment fund guarantees. Of the $5 

billion outstanding, $4.3 billion related to project finance and 

$700 million related to investment fund guaranties. Included in 

the $2.2 billion of investment fund exposure is $328 million of 

estimated interest that could accrue to the guaranty lender. This 

interest generally accrues over a 10-year period, payable upon 

maturity. Upon complete nonperformance by the borrower, OPIC 

would be liable for principal outstanding and interest accrued on 

disbursed investment funds. At September 30, 2009, $76 million 

of the $328 million had actually accrued to the guaranteed lender 

on disbursed investment funds; the remainder represents an 

estimate of interest that could accrue to the guaranteed lender 

over the remaining investment fund term.

At September 30, 2008, OPIC’s exposure to credit risk under 

investment guaranties, including claim-related assets, was $7.2 

billion, of which $4.8 billion was outstanding. Of the $7.2 billion 

of exposure, $5.5 billion was related to project finance and $1.7 

billion was related to investment fund guarantees. Of the $4.8 

billion outstanding, $4.2 billion related to project finance and 

$600 million related to investment fund guaranties. Included in 

the $1.7 billion of investment fund exposure is $299 million of 

estimated interest that could accrue to the guaranty lender. This 

interest generally accrues over a 10-year period, payable upon 

maturity. Upon complete nonperformance by the borrower, OPIC 

would be liable for principal outstanding and interest accrued on 

disbursed investment funds. At September 30, 2008, $43 million 

of the $299 million had actually accrued to the guaranteed lender 

on disbursed investment funds; the remainder represents an 

estimate of interest that could accrue to the guaranteed lender 

over the remaining investment fund term.

Changes in the reserve for investment guaranties during fiscal 

years 2009 and 2008 were as follows (dollars in thousands): 

2009 2008

Beginning balance $ 625,291 486,304

Amount charged off — (51,455)

Recoveries 1,098 —

Increase (decrease) in provisions 50,033 190,442

Ending balance $ 676,422 625,291

Mindful that uncertainty in the global economy and volatility in 

world financial markets can affect loan repayments, it is OPIC 

policy to regularly review reserve adequacy. Accordingly, to provide 

for potential future impact to the portfolio OPIC set aside an 

additional prudential reserve in fiscal year 2009. This reserve is 

reflected in the above $50 million “Increase in provisions”.

(11) Accounts Receivablefrom  Investment Guarant

Acquired in Insurance 

Settlements (Claim-Re

Claim-related assets may result from payments on claims under 

either the investment financing program or the insurance program. Under the investment financing program, when OPIC pays 

a guaranteed party, a receivable is created. Under the insurance 

program, similar receivables reflect the value of assets, generally 

shares of stock, local currency, or host country notes, that may be 

acquired as a result of a claim settlement. These receivables are 

generally collected over a period of 1 to 15 years. 

Accounts receivable resulting from investment guaranties were as 

follows (dollars in thousands):

2009 2008

Accounts receivable resulting from

investment guaranties $ 71,806 70,949

Allowance for doubtful recoveries (21,283) (14,163)

Accoounts receivable, net $ 50,523 56,786

Changes in the allowance for doubtful recoveries for assets resulting from investment guaranties during fiscal years 2009 and 

2008 were as follows (dollars in thousands):

2009 2008

Beginning balance $ 14,163 16,477

Increase (decrease) in provisions 7,120 (2,452)

Recoveries — 138

Ending balance $ 21,283 14,163
2009 OPIC annual repo

PAGE

36

Assets acquired in insurance claims settlements were as follows 

(dollars in thousands):

2009 2008

Assets acquired in insurance

claims settlements $ 43,819 69,378

Allowance for doubtful recoveries (2,873) (4,023)

Accounts receivable, net $ 40,946 65,355

Changes in the allowance for doubtful recoveries for assets 

acquired in insurance claims settlements during fiscal years 2009 

and 2008 were as follows (dollars in thousands):

2009 2008

Beginning balance $ 4,023 4,192

Amounts charged off — —

Transfers to other reserves (1,150) (169)

Ending balance $ 2,873 4,023

(12) Reserves and Full Faith

Section 235(c) of the FAA established a fund which shall be 

available for discharge of liabilities under insurance or reinsurance or under similar predecessor guaranty authority. This fund 

consists of the Insurance Reserve and the Guaranty Reserve for 

the respective discharge of potential future liabilities arising 

from insurance or from guaranties issued under Section 234(b) 

of the FAA. These amounts may be increased by transfers from 

retained earnings or by appropriations. In fiscal years 2009 and 

2008, OPIC’s retained earnings were allocated to these reserves 

on the basis of maximum exposure outstanding for insurance 

and guaranties respectively, thereby reflecting OPIC’s increased 

ability to absorb potential losses without having to seek appropriated funds.

All valid claims arising from insurance and guaranties issued 

by OPIC constitute obligations on which the full faith and credit 

of the United States of America is pledged for full payment. At 

September 30, 2009 and 2008, the Insurance Reserve totaled 

$839 million and $1 billion, and the Guaranty Reserve totaled 

$3.3 billion and $3 billion, respectively. Should funds in OPIC’s 

reserves not be sufficient to discharge obligations arising under 

insurance, and if OPIC exceeds its $100 million borrowing authority authorized by statute for its insurance program, funds would 

have to be appropriated to fulfill the pledge of full faith and 

credit to which such obligations are entitled. Standing authority 

for such appropriations is contained in Section 235(f) of the FAA. 

The Federal Credit Reform Act of 1990 authorizes permanent, 

indefinite appropriations and borrowings from the U.S. Treasury, 

as appropriate, to carry out all obligations resulting from the 

investment financing program. 

(13) Disclosures About Fair Va

Financial Instr

The estimated values of each class of financial instrument for which 

it is practicable to estimate a fair value at September 30, 2009 are 

as follows (dollars in thousands):

Carrying amount Fair val

Financial Assets:

Cash $ 549,470 549,470

U.S. Treasury securities 4,857,835 5,199,641

interest receivable on securities 40,677 40,677

Direct loans 808,363 808,363

Accounts receivable 

 from investment guaranties 50,523 50,523

Assets acquired in 

 insurance claims settlements 40,946 40,946

Financial Liabilities: 

Borrowing from the U.S. Treasury $ 1,006,520 1,599,705

The methods and assumptions used to estimate the fair value of 

each class of financial instrument are described below:

Cash: The carrying amount approximates fair value because of 

the liquid nature of the cash, including restricted cash.

U.S. Treasury Securitis:  The fair values of the U.S. Treas

securities are estimated based on quoted prices for Treasury 

securities of the same maturity available to the public. OPIC is 

not authorized, however, to sell its securities to the public, but is 

instead restricted to direct transactions with the U.S. Treasury. 

Interest receivable on the securities is due within 6 months and 

is considered to be stated at its fair value.

Direct Loans, Accounts Receivable Resulting from Investm

Guaranties, and Assets Acquired in Insurance Claims Settlement:  These assets are stated on the balance sheet at t

present value of the amount expected to be realized. This value 

is based on management’s quarterly review of the portfolio and 

considers specific factors related to each individual receivable 

and its collateral. The stated value on the balance sheet is also 

management’s best estimate of fair value for these instruments.

Borrowings from the U.S. Treasuy:  The fair value of borrowings from the U.S. Treasury is estimated based on the face va

of borrowings discounted over their term at year-end rates. 

These borrowings were required by the Federal Credit Reform 

Act, and repayment terms are fixed by the U.S. Treasury in accordance with that Act.

Investment Guaranties Committed and Outstandin:  OPIC

investment guaranties are intended to provide a means of 

mobilizing private capital in markets where private lenders would 

be unwilling to lend without the full faith and credit of the U.S. 
PAGE

WWW.OPIC.GOV 37

Government. Given the absence of a market for comparable 

instruments, OPIC determined that the fair value is the present 

value of future fees expected to be collected.

(14) Operat

OPIC negotiated a new building lease during fiscal year 2004. 

Under the lease terms, OPIC received interest-bearing tenant 

improvement allowances for space refurbishment. Total incentives 

offered by the lessor to cover these costs were $3.4 million. The 

value of these incentives is deferred in the balance sheet and is 

amortized to reduce rent expense on a straight-line basis over the 

15-year life of the lease.

Rental expense for fiscal years 2009 and 2008 was approximately 

$4 million and $3.8 million, respectively. Minimum future rental 

payments under the 15-year lease at 1100 New York Avenue, N.W. 

are approximately $4.4 million annually, with additional adjustments tied to the consumer price index. 

(15) Pension

OPIC’s permanent employees are covered by the Civil Service 

Retirement System (CSRS) or the Federal Employee Retirement 

System (FERS). For CSRS, OPIC withheld 7.0% of employees’ 

gross 2009 earnings and contributed 7.0% of employees’ 2009 

gross earnings. The sums were transferred to the Civil Service 

Retirement Fund from which this employee group will receive 

retirement benefits. 

For FERS, OPIC withheld 0.80% of employees’ gross earnings. 

OPIC transferred this sum to the FERS fund from which the employee group will receive retirement benefits. An additional 6.2% 

of the FERS employees’ gross earnings is withheld, and that, plus 

matching contributions by OPIC, are sent to the Social Security 

System from which the FERS employee group will receive social 

security benefits. OPIC occasionally hires employees on temporary 

appointments, and those employees are covered by the social 

security system under which 6.2% of earnings is withheld and 

matched by OPIC.

FERS and CSRS employees may elect to participate in the Thrift 

Savings Plan (TSP). In January 2006 the TSP contributions limits 

were eliminated. In 2009 both CSRS and FERS employees could 

elect to contribute up to $16,500, the IRS elective deferral limit 

for the tax year. FERS employees receive an automatic 1% 

contribution from OPIC. Amounts withheld for FERS employees are 

matched by OPIC, up to an additional 4%, for a total of 5%.

Although OPIC funds a portion of employee pension benefits under 

the CSRS, the FERS, and the TSP, and makes necessary payroll 

withholdings, it has no liability for future payments to employees under these programs. Furthermore, separate information 

related to OPIC’s participation in these plans is not available 

for disclosure in the financial statements. Paying retirement 

benefits and reporting plan assets and actuarial information is 

the responsibility of the U.S. Office of Personnel Management and 

the Federal Retirement Thrift Investment Board, which administer 

these plans. Data regarding the CSRS and FERS actuarial present 

value of accumulated benefits, assets available for benefits, and 

unfunded pension liability are not allocated to individual departments and agencies.

(16) Concentration of

OPIC is subject to certain risks associated with financial instruments not reflected in its balance sheet. These financial instruments include political risk insurance, loan guaranties, and 

committed-but-undisbursed direct loans. 

With respect to political risk insurance, OPIC insures against 

currency inconvertibility, expropriation of assets, and political 

violence. Additionally, OPIC provides investment financing through 

direct loans and investment guaranties.

OPIC’s credit policy is to take a senior security position in the 

assets of the projects or transactions it guaranties. The nature 

and recoverable value of the collateral pledged to OPIC varies from 

transaction to transaction and may include tangible assets, cash 

collateral or equivalents, and/or a pledge of shares in the project 

company as well as personal and corporate guaranties. OPIC takes 

all necessary steps to protect its position in such collateral and 

retains the ability to enforce its rights as a secured lender if such 

action becomes necessary.

The following is a summary of OPIC’s off-balance-sheet risk at 

September 30, 2009 and 2008 (dollars in thousands):

2009  Total Outstanding Unused commitm

Guaranties $ 8,162,644 4,919,118 3,243,526

Undisbursed direct loans 1,483,239 — 1,483,239

Insurance 2,688,916 1,945,076 743,840

2008 

Guaranties $ 7,081,511 4,731,719 2,349,792

Undisbursed direct loans 453,076 — 453,076

Insurance 2,921,905 2,245,473 676,432
2009 OPIC annual repo

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OPIC’s off-balance-sheet finance and insurance exposure involves 

coverage outside of the United States. The following is a breakdown of such total commitments at September 30, 2009 by major geographical area (dollars in thousands): 

 Loan Undisbursed porti

 guaranties of direct loans  Insuran

Africa $ 1,273,105 288,659 555,676

Asia 385,472 106,450 501,703

Europe 797,458 118,375 95,635

Latin America 3,027,558 161,260 433,236

Middle East 1,423,736 644,379 792,432

NIS (New Independent States) 894,954 109,532 328,871

Worldwide 360,361 54,584 —

Insurance stop-loss adjustment — — (18,637)

 $ 8,162,644 1,483,239 2,688,916

OPIC has several client-specific contracts with stop-loss limits that 

are less than the aggregate coverage amounts. The insurance stoploss adjustment represents the difference between the aggregate 

coverage amount and OPIC’s actual exposure under these contracts. 

At September 30, 2009, OPIC’s largest finance and insurance exposure was in the following countries and sectors (dollars in thousands):

(17) Other Contin

OPIC is currently involved in certain legal claims and has received 

notifications of potential claims in the normal course of business. 

There are substantial factual and legal issues that might bar any 

recovery in these matters. It is not possible to evaluate the likelihood of any unfavorable outcome, nor is it possible to estimate 

the amount of compensation, if any, that may be determined to be 

owed in the context of a settlement. Management believes that 

the resolution of these claims will not have a material adverse 

impact on OPIC.

(18) Accounting and Disclosure Require- ments fo

In FY 2009 and FY 2008 pursuant to the requirement of FASB 

ASC 460, OPIC recognized a guaranty liability and a guaranty fee 

receivable of $234 million and $152.5 million, respectively. OPIC 

collected $63.9 million and $51 million of guaranty fees in FY 

2009 and FY 2008, respectively, on the investment guaranties 

issued since December 31, 2002.

(19) Statutory Cove

OPIC’s enabling statute stipulates both operating and financial 

requirements with which OPIC must comply. In management’s 

opinion, OPIC is in compliance with all such requirements.

Country

Mexico $ 1,010,158

Jordan 781,598

Russia 658,235

Nigeria 626,168

Turkey 610,076

Secto

Financial services $ 6,539,867

Power generation 1,770,198

Oil and gas services 1,406,255

Services 1,025,851

Manufacturing 751,574
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