www.opic.gov 

table of contents

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 opic • 2006 annual rep

	 s the primary U.S. govern-	

	 ment agency focused on

	 supporting U.S. private sec-	

	 torinvestment in the devel-	

oping world, OPIC remains as important

as ever. In every region of the world, we

see new examples of the catalytic role

that investment and economic development plays in improving the quality of

life for people, encouraging the growth

of democratic institutions and the rule of

law, and in fostering political stability. At

the same time, helping U.S. businesses,

particularly small and medium-sized

businesses, to grow by investing overseas,

continues to bring benefits here at home.

I am pleased to report that in 2006, OPIC

was an even more effective instrument of

U.S. foreign policy and enabler of global

economic development. By working

in closer collaboration with other U.S.

government agencies to bring economic

development to emerging or underserved

markets, OPIC better focused its resources and efforts. By enhancing transparency

and fighting corruption, OPIC worked

to level the playing field for U.S. businesses as they participate in international

commerce. By reaching out in more ways

to U.S. small businesses and minorityand women-owned enterprises, OPIC

ensured greater access to opportunity for

more. By identifying and supporting projects that extend significant developmental

benefits to the widest possible audiences,

OPIC fulfilled its mission throughout the

world. And by charging market-based

fees for its products, OPIC continued to

meet these responsibilities as a self-	

sustaining agency, operating at no net

cost to taxpayers and returning money to

the U.S. Treasury.

While OPIC’s finance and political risk

insurance products make us unique

among federal agencies, we recognize

the importance of collaboration. I used

the occasion of my first overseas visit

as OPIC president to demonstrate that

greater cooperation with other U.S.

government agencies can help OPIC to

maximize its own impact. Last October,

I joined U.S. Secretary of Commerce

Carlos Gutierrez on the first U.S. business

development mission to Central America

since enactment of the Central AmericaDominican Republic-United States Free

Trade Agreement (CAFTA-DR). Visiting

the region three times last year, I announced OPIC support for new Central

American private equity investment funds

and signed agreements for over $300 million in finance and insurance for housing,

energy, microfinance and small business projects. These investments, like all

A

president’s let

In every region of the world, we see new 

examples of the catalytic role that investment 

and economic development plays in improving 

the quality of life for people, encouraging the 

growth of democratic institutions and the rule 

of law, and in fostering political stability.

 opic • 2006 annual rep

building reforms which in turn lead to

more private investment.

OPIC was in fact the pioneer in creating

the government-backed financial products and services that encourage private

investment in countries where perceived

risks outweighed potential rewards.

We continue to lead and innovate. Our

new Rapid Economic Development

Initiative, created in conjunction with

other U.S. government agencies, is

kick-starting developmental investment

in Lebanon, Liberia, and other high

priority countries where visible economic progress is critical to maintaining

political stability.

Each passing year underscores the

importance of OPIC to the fulfillment of

our nation’s commitment to help create

economic hope and opportunity around

the world. I look forward to working

with all of OPIC’s stakeholders to make

that better world possible.

Robert Mosbacher, Jr.

President and CEO

These included Expanding Horizons, a

series of workshops on overseas investment opportunities for minority- and

women-owned enterprises. Increasing

their participation in global markets

remains a primary OPIC objective. To

that end, attendees in Atlanta, Chicago,

and Los Angeles learned of support available from OPIC and other government

agencies, and made important contacts

with financial institutions and potential

project partners. We are already planning

to hold more workshops during 2007.

In May, I was pleased to welcome a capacity crowd of more than 270 from the

United States, Europe, and 21 African

countries to Housing Africa, an international conference organized by OPIC

in Cape Town, South Africa. Intended

to increase housing-related investment

throughout the continent, Housing Africa

showcased opportunities for American

construction companies, banks, investment firms and suppliers to partner with

their nascent African counterparts in all

segments of the housing industry.

Following the conference, OPIC focused

its housing initiative on establishing

innovative financing and infrastructuredevelopment models that can be applied

essentially anywhere. OPIC-supported

projects that will create a reliable land

records system in Kenya or make it possible for low and moderate income home

buyers in Honduras to secure fixed rate

mortgages are just two of many replicable concepts that can increase homeownership by expanding the foundations on

which housing markets are built.

In choosing projects to support, OPIC

has a strong preference for those that

improve a developing country’s infrastructure, both physical and financial,

and provide local entrepreneurs access to

more affordable credit. Such projects are

more likely to stimulate the local economy and efficiently develop the structures

for sustained economic growth.

We at OPIC regard economic development not as a sequence of discrete steps

that add up to growth, but as a series

of building blocks that depend on and

strengthen each other. Through their interrelationships, they support the growth

of institutions, of investment, of skills,

and, ultimately, of markets.

The challenge that OPIC is uniquely

equipped to handle is that many host

countries need such developmental investment now, before they have been able

to establish a climate that fosters investor

confidence. OPIC investments, guaranties, and insurance accelerate confidencepresident’s let
www.opic.gov 

I am pleased to report that in 2006, OPIC 

was an even more effective instrument 

of U.S. foreign policy and enabler of global 

economic development. 

www.opic.gov 

OPIC was created to mobilize and facilitate 

the participation of United States private 

capital and skills in the economic and social 

development of less developed countries 

and areas, and countries in transition from 

nonmarket to market economies.

www.opic.gov 

ith a mission to en-	

courage investment in

the most underserved

emerging markets in

the developing world, OPIC identifies

projects that stimulate local economic

growth by supporting the development

of a critical, and often missing, aspect of

a country’s economic infrastructure.

Improved transportation, clean	

water, affordable housing, expanded

energy supply, advanced medical equipment — projects can be in any sector,

and of any size, to fit OPIC’s concept of

development. And the developmental

impact of the project continues to be felt

in the host country long after the project

is initiated.

In 2002, South Africa’s ambitious program to construct 90,000 homes for lowincome citizens — in effect to transform

squatters into legitimate homeowners

— had bogged down because of homebuilders’ difficulty in obtaining affordable short-term construction financing.

The nation’s housing minister visited

OPIC and asked if there was any way the

agency could help. There was. In just 11

months, OPIC and the U.S. nonprofit

Open Society Institute arranged a $15

million loan guaranty which enabled

South Africa’s Rand Merchant Bank

to on-lend funds to private homebuilders through the National Urban

Reconstruction and Housing Agency.

W

OPIC Investment Funds generate 

developmental benefits.

Since making its first investment in 

1987, OPIC has supported professionally managed private equity funds as 

a way to leverage private investment 

in specific regions, nations, or sectors. 

An independent review by Cambridge 

Associates in 2006 confirmed the 

contribution of OPIC investment 

funds to the agency’s developmental 

mission. Fund investments strengthen 

host countries’ physical and financial 

infrastructure, improve regulatory 

environments, generate local employment and training, and furnish essential 

goods and services. Encouraged by 

their success, managers of the earliest 

OPIC funds have generated an ongoing 

multiplier effect by establishing new 

non-OPIC funds to attract investment 

from other sources.

With perceived risk removed from the

lending process, Rand Merchant Bank,

in three years has provided funds for

127 loans worth $26 million to housing

projects in eight of South Africa’s nine

provinces. Of these projects’ 51,000

planned homes, 29,700 have already

been built. With the majority of loans

going to black-owned construction companies, many of them with little capital

or lending experience, the project’s

catalytic effect on South Africa’s nascent

black homebuilding industry may prove

even more lasting.

While OPIC strives to deliver positive

developmental results in all eligible

countries, its new multi-agency Rapid

Economic Development Initiative targets

investment in nations whose security

urgently depends on near-term tangible

economic progress.

To aid Lebanon’s economic recovery,

OPIC and Citigroup Corporate and

Investment Bank are already working

together to mobilize private capital

through Lebanese banks for home

reconstruction, mortgage financing, and

small and medium-sized enterprises.

After years of civil war and corrupt

rule, Liberia is in desperate need of

infrastructure development at all levels.

Senior OPIC teams have visited Liberia

to identify and assess the opportunities

for short and long-term investment.

www.opic.gov 

Increasing access to opportunity through 

outreach to OPIC’s many different audiences.

www.opic.gov 1

	 n one of the agency’s most impor-	

	 tant new outreach initiatives,

	 OPIC’s Expanding Horizons work-	

shop series helped hundreds of

U.S. minority and women business

owners learn how OPIC can help them

apply their competitive advantages

in emerging markets. Wide-ranging

one-day programs in Atlanta, Chicago,

and Los Angeles increased participants’

understanding of overseas investment

opportunities and challenges, financial

issues such as political risk insurance

and access to capital, and of OPIC and

other federal assistance available to minority- and women-owned businesses.

Part of OPIC’s commitment to public

service, Expanding Horizons was held in

cooperation with the U.S. Department

of Commerce’s Minority Business

Development Agency and the National

Women’s Business Council.

Among the outreach programs described to workshop attendees was

OPIC’s new Enterprise Development

Network, a strategic alliance among

financial institutions, brokers, and law

firms, which could ultimately administer $100 million in OPIC financing to

creditworthy U.S. small businesses for

projects in emerging markets.

OPIC’s Housing Africa conference in

Cape Town, South Africa, focused attention on the need for housing investment in Sub-Saharan Africa. More than

270 participants heard from experts on

current housing initiatives, construction, land development, legal issues,

infrastructure, mortgage financing,

capital markets, and private equity investment. Or, in the words of Hackman

Owusu-Agyemang, Housing Minister

of the Republic of Ghana: “You have

given us A to Z of houses. Everything

that has got to do with housing and

the opportunities that are out there for

all of us. I would like you to take the

thanks of all of us to your government

and the people of the United States for

sharing our aspirations for development of this continent.”

OPIC outreach within the federal

government in 2006 included a new

Strategic Alliance Memorandum between OPIC and the U.S. Small Business

Administration expanding the agencies’

collaboration to support U.S. small business investment overseas.

OPIC signed new investment incentive

agreements with the governments of El

Salvador, Honduras, Nicaragua, and the

Democratic Republic of the Congo,

officially making OPIC support available for projects in those countries.

Agreements with the Central American

nations will enlist their trade-related

agencies in OPIC’s outreach to U.S. businesses, expanding the network of professionals working to build awareness of

OPIC services.

Because someone is always working

somewhere, OPIC upgraded its web site

in 2006 to make it easier for entrepreneurs

and potential project sponsors to find

information and even begin the project

application process at any time of day.

Project profiles, conference and workshop

schedules, links to investment resources,

the new Anti-Corruption Handbook, and

guidance on preparing loan applications

can all be found at www.opic.gov.

Right-sized partners for 

emerging markets.

Employing more than 23 million 

workers and generating over $3 trillion in sales, minority- and womenowned U.S. businesses enjoy genuine 

competitive advantages for investing 

in emerging markets. They offer the 

flexibility, decision-making speed, and 

comfort and experience with diversity 

that their overseas counterparts are 

looking for in strategic partners. But 

lack of knowledge about assistance 

programs, scarcity of private capital, 

and concern over political risks have 

prevented them from realizing their 

full potential in developing countries. 

OPIC’s Expanding Horizons workshops 

armed hundreds of entrepreneurs with 

information and resources to prosper in 

new markets overseas.

I

www.opic.gov 1

Fighting corruption and ensuring 

transparency are deeply tied to OPIC’s 

developmental mission.

www.opic.gov 

	 hief among the reforms of

	 the Anti-Corruption and

	 Transparency Initiative is

	 OPIC’s endorsement of the

Extractive Industries Transparency

Initiative (EITI). EITI supports improved

governance in resource-rich developing

countries — and counters bribery, extortion, and coercion — through the full

publication and verification of company

payments and government revenues

from oil, gas, mining, and chemical ventures. Its goal is to ensure that

project benefits flow to host countries

and their populations. Participation in

EITI can reduce project risks, improve

the likelihood of project success, and

reduce costs. OPIC encourages sponsors

to agree to EITI guidelines on projects

receiving OPIC support.

OPIC has historically worked to ensure

that OPIC-supported projects are in full

compliance with the Foreign Corrupt

Practices Act (FCPA) and other anti-	

corruption laws. As another element of

the new initiative, OPIC has published

an Anti-Corruption Handbook describing in reader-friendly language the FCPA

and how it applies to OPIC-supported

projects and sponsors. For example, the

handbook clearly notifies sponsors of

their obligation to certify their compliance with anti-corruption laws at various

stages of the OPIC-supported project application, review, and approval process.

As a practical tool, the handbook provides project sponsors with easy-to-	

Welcomed and applauded 

support for the rule of law.

Transparency International-USA 

(TI-USA), part of the global civil 

society organization leading the 

worldwide fight against corruption, 

welcomed OPIC’s Anti-Corruption and 

Transparency Initiative as an important element of the Administration’s 

anticorruption agenda. “OPIC’s initiative recognizes the critical role of the 

private sector in reducing corruption 

and its provisions promise to enhance 

standards of international business 

conduct,” said TI-USA Chairman Alan 

Larson. “By taking these steps, OPIC 

will send a clear signal that bribery will 

not be tolerated in its projects.”

follow guidance on developing an effective compliance program and a comprehensive approach to fighting corruption.

Sponsors are cautioned that OPIC treats

seriously and investigates every allegation of fraud or corruption against OPICsupported projects. The handbook can

be downloaded from the OPIC web site

at www.opic.gov.

OPIC has also established an anti-corruption hotline, at 202-312-2153, which anyone can call to report potential irregularities in OPIC-sponsored projects. Project

participants may also use the hotline to

contact the Chief Compliance Officer for

answers to their compliance questions.

Among the improvements for increased

transparency of OPIC operations, the initiative provides new steps to identify and

make public potentially adverse project consequences earlier in the review

process. From now on, OPIC will require

enhanced consultation with locally-affected communities on what the agency

calls Category A projects — those with

the potential for significant environmental impact.

The agency has redesigned its web site to

increase and better organize the information available to the public. This includes

greater numbers of non-business confidential summaries of OPIC-sponsored

projects and non-business confidential

versions of certain environmental documents on Category A projects.

As the culmination of years of consultation with stakeholders in Congress

and the nongovernmental community,

the Anti-Corruption and Transparency

Intiative represents a significant step to

ensure that OPIC-supported projects

meet a higher standard. Speaking at

OPIC’s public announcement, Julian

Braithwaite, the British Embassy’s

Counsellor for Global Issues, said the

OPIC initiative “serves as a model for

government agencies and other institutions which appreciate the correlation

between lawful business practices and

sustainable development.”

C

www.opic.gov 1

OPIC continues to pursue its developmental 

mission in partnership with both the public 

and the private sectors.

www.opic.gov 2

A model of financiallysound development.

Microfinance institutions (MFIs) have 

in the past three decades emerged as 

an important engine of local economic growth — showing repayment rates 

better than formal financial sectors in 

most developing countries — and nowhere is that more true than in Central 

and Latin America, where the industry 

is growing 7-10 percent annually. 

Microfinance International (MFIC), 

a U.S. financial services company, is 

using a $4 million OPIC loan to connect MFIs to another lucrative market 

— the processing of remittances from 

the U.S. to families back in the region 

— as well as to expand MFI portfolios 

for housing and small business loans. 

MFIC will use proceeds of the OPIC 

loan to on-lend to qualified MFIs in 

Latin America, many of which are 

ideally positioned to accommodate 

remittance recipients, due to their location and customer focus. The OPIC 

loan is expected to generate hundreds 

of loans by regional MFIs during the 

next two years.

	 n the highest-level expression of

	 OPIC’s partnership approach to

	 Central America, OPIC’s new

	 President and CEO Robert

Mosbacher, Jr., visited the region three

times. The first of these international

trade missions, to promote developmental efforts in Guatemala, Honduras, and

El Salvador, came within weeks of his

assuming office in October 2005.

Memorandums of understanding signed

with national trade promotion agencies

in El Salvador and Honduras on a May

2006 visit — and with Nicaragua earlier

in the year — will facilitate OPIC support for U.S. investment. These agencies

have already developed sizable portfolios

of potential projects ready for presentation to potential U.S. investors. Training

by OPIC staff will equip their personnel

to inform far greater numbers of U.S.

small businesses about OPIC services

than OPIC could reach alone. OPIC

intends to increase this force multiplier

effect by concluding similar agreements

throughout the region.

Private equity funds provide another

mechanism for leveraging OPIC support into higher volumes of investment.

Early in 2006, for example, OPIC issued

a call for proposals to manage one or

more new private equity investment

funds designed specifically to stimulate

economic growth in Central America.

In April, OPIC’s board of directors

approved $45 million in financing for

the $90 million Darby ProBanco Fund

II, which will support investments in

companies in Central America, Mexico

and Colombia.

With $250 million in OPIC guaranties for a new global lending facility,

Wachovia Corporation will expand its

lending in emerging markets, with a

focus on Latin America and CAFTA-DR

countries. Wachovia will make loans

to partner banks, so they can lend to

small and medium-sized businesses,

homeowners, and consumers. This is

the third such global framework agreement that OPIC has completed with

Wachovia. A $350 million OPIC guaranty issued to National City Bank will

support increased lending for housing

construction, providing much-needed

credit to a sector vital to the region’s

economic growth.

OPIC is also working throughout the region to increase access to capital at all levels. Working with the U.S.-based pioneering microlender ACCION International,

OPIC is helping to finance an emergency

liquidity facility that will help microfinance lenders in Latin America and

the Caribbean. A $4 million loan to

Microfinance International (MFIC), a U.S.

company that provides remittance and

financial services in the U.S. in collaboration with microfinance institutions, will

be used to assist microfinance institutions

in several countries in the region, including El Salvador, Nicaragua and Honduras.

Beyond its collaboration with other agencies, nations, and institutions, OPIC will

be increasing its support in the form of

direct loans, guaranties, and political risk

insurance for U.S. and Central American

businesses involved in projects throughout the region.

I

www.opic.gov 23

Increasing small business participation in 

global markets is an ongoing goal at OPIC.



www.opic.gov 2

In funding, guaranteeing, or insuring 

housing-related projects, OPIC enables host 

countries to meet a pressing social need and 

helps to unleash the power of housing and 

mortgage markets to build domestic wealth 

and increase local savings.

www.opic.gov 29

Helping nations on the road 

to recovery.

Over the years, OPIC’s housing initiative has placed particular emphasis 

on rebuilding nations devastated by 

natural disaster, civil unrest, or war. 

The year 2006 was no exception, as 

OPIC announced a loan and small 

business political risk insurance 

“wrap” to Maskan Ltd., the subsidiary 

of a Maryland-based company, for the 

construction of three residential buildings in Kabul, along with related water, 

sewage, and backup electrical systems. 

This is the first phase in a development that will ultimately comprise 17 

much-needed residential and mixedused buildings in a city where Soviet 

occupation and Taliban rule left 80 

percent of residential and commercial 

structures damaged or destroyed.

	 n Africa, where many prospective

	 homeowners lack access to the

	 long-term financing that supports

	 well-paced housing construction, it

can take years to build a home. So more

important than the 5,000 homes being

constructed in the new Lilayi Estates

community near Lusaka, Zambia, is that

an OPIC loan to HFA Zambia, a Houses

for Africa company, is helping to create

one of the few markets for long-term

fixed-rate mortgages in all of Africa.

Another model aspect of this project is

modernization of Zambia’s titling and

deeds registry system, which will ensure

timely mortgage recording and delivery

of mortgage certificates. The U.S. Agency

for International Development is providing technical assistance for this important

component of housing infrastructure.

Improved land records are also the focus

of an OPIC-supported project in Malindi,

Kenya. As in many Kenyan municipalities, out-of-date, incomplete, or nonexistent records keep Malindi from

collecting a substantial proportion of its

property-related taxes. An $840,000 loan

to Geosurvey International LLC of Horse

Creek, Wyoming, will establish a modern

database-driven Land Information System

with the potential to increase municipal

tax collection by three to five times.

OPIC also provided political risk insurance for a U.S. construction materials factory and construction services

company in Angola. The project facilities

include a concrete batching plant, an

area for molding concrete blocks, several

stockpiles for storing aggregate, employee

housing, and a woodworking shop for

door manufacturing. This project will

provide an important source of construction materials for low-cost housing and

commercial buildings in Angola.

OPIC is providing Russian lenders access to U.S. capital markets by supporting one of the first public securitizations

of mortgage certificates in that country.

Connecticut-based Greenwich Financial

Services LLC used a $6 million OPIC

loan to purchase the mezzanine piece

of a securitization, which facilitated the

completion of a $72.6 million mortgage-backed securitization of residential mortgages originated primarily in

Moscow and St. Petersburg by a private

Russian Bank, CityMortgage Bank. The

project will open a new avenue of funding for Russian mortgage lenders and

the prospect of more affordable terms

for Russian homeowners.

Another promising housing project

involves the provision of OPIC political risk insurance to Enterprise Homes,

LLC for the construction of residential

housing developments near major cities

in Tanzania, amounting to about 5,000

homes over a period of five to seven years.

Each residential neighborhood will consist

of a cluster of single-family homes located

on a land plot situated within 20 miles of

the central business district.

Franchising is the very definition of a

model, and the basis of another OPIC

housing-related project in Russia. Olard

Trading Limited, a U.S.-owned small

business, will use its OPIC loan to franchise the Century 21 real estate brand in

Russia, helping to introduce standardized

practices to the country’s largely unregulated real estate market.

I
30 opic • 2006 annual rep

US Sponsor/Insured Investor Project Name  Projec

Afca 

Bu

International Rescue Committee	 International Rescue Committee, Inc	 Humanitarian services	 $1,534,584	 Insurance

Camer

Hubert Kepseu	 Natura Beverage, LLC	 Water bottling facility	 $591,340	 Finance

Natura Beverage, LLC	 Natura Beverage SARL	 Water bottling facility	 $177,390	 Insurance

Congo, Democratic Republi

Number One Contracting Corp	 Bureau of Infrastructure Contracts Coordination	 Water supply	 $214,893	 Insurance

Number One Contracting Corp	 Projects Coordination Division, Ministry of Finance	 Road rehabilitation	 $2,687,479	 Insurance

Number One Contracting Corp	 The Ministry of Urbanism	 Housing construction	 $1,468,660	 Insurance

Number One Contracting Corp	 The Ministry of Urbanism	 Housing construction	 $619,386	 Insurance

Number One Contracting Corp	 The Ministry of Urbanism	 Roads	 $553,441	 Insurance

Gabo

Alain ba Oumar	 Internet Gabon, SA	 Internet business expansion $3,000,000	 Finance

Gha

GHL-USA Investment Partners, LLC	 Ghana Home Loans (Fund 1) Limited	 Residential mortgage loans funding	 $30,000,000	 Finance

Three E Kumasi Investment Co, LLC	 International Community School Limited	 School campus expansion in Kumasi, Ghana	 $1,750,000	 Finance

Warren Development Corp	 Warren Development Company, Ltd	 Telecommunication and internet access center	 $1,350,000	 Insurance

Ir

Baltimore Dredges, LLC	 Ministry of Water Resources	 Bid bond/River dredges supply $153,000	 Insurance

Aziz Khudairi Khudairi Trading Company Ltd	 Construction equipment, generators, $6,003,000	 Insurance

transformer substations

United Marine Int’l, LLC	 Ministry of Water Resources	 Performance bond/Weed harvester	 $107,544	 Insurance

Keny

Living Water International	 Living Water International	 Potable-water wells drilling	 $500,000	 Finance

Namib

Lazare Kaplan International Inc	 LKI, International Diamond cutting and polishing operations	 $25,200,000	 Finance

Tanzani

Enterprise Homes, LLC	 Enterprise Homes Tanzania Limited, Housing development	 $12,420,000	 Insurance

Care of Ishengoma, Masha

2006 IN

32 opic • 2006 annual rep

Vietn

BMCC Inc	 VietnamNet Media Joint Stock Company	 Communication services	 $2,500,000	 Insurance

Kimberly-Clark Corporation	 Kimberly-Clark Vietnam Co., Ltd	 Feminine care manufacturing facility	 $16,459,200	 Insurance

Asia and the Pacific Regi

Financial Intermediary	 Asia Development Finance, LTD	 Financial Services	 —	 Investment Funds

Euo

Azerbaij

ShoreBank International Ltd	 Kredit Non-Banking Credit Organizati LLC	 SME and mortgage loan portfolio expansion $7,500,000	 Finance

Bulga

Wachovia Bank National Assoc.	 First Investment Bank Bulgaria*	 Retail loan portfolio expansion	 $10,000,000	 Finance

Financial Intermediary	 New Europe Directories Bulgaria EOOD	 National classified telephone directories	 —	 Investment Funds

(thru New Europe Directories, Sarl)	 producer	

Georg

Firebird Management	 Bank of Georgia (WBC)	 Residential mortgage portfolio expansion	 $9,750,000	 Finance

Dr. Ward Flad	 GAMA LTD	 Pharmaceutical manufacturing operation 	 $740,200	 Finance

expansion

James Gilson	 QSI International School of Tbilisi International K-12 school	 $1,000,000	 Finance

Zavod Za Izobrazevanje 	 Union “QSI International School of Tbilisi”	 International K-12 school	 $908,000	 Insurance

Southeastern Export Corporation	 American Monolith LTD	 Cold storage warehouse	 $3,900,000	 Finance

Kazakhst

Citigroup Corporate and	 JSC Halyk Bank*	 SME loan portfolio expansion	 $22,500,000	 Finance	

Investment Bank

Mercy Corps	 Asian Credit Fund Credit Coop LLC	 Microfinance/SME lending portfolio $1,500,000	 Finance

Senior and Subordinated Debt expansion

Wachovia Bank National Assoc.	 Alliance Bank*	 SME retail loan portfolio expansion	 $16,000,000	 Finance

Wachovia Bank National Assoc.	 Bank Centercredit*	 Retail loan portfolio expansion	 $9,000,000	 Finance

Kosovo

Service Group International LLC	 International Village Pristina Constuction and sale/lease of 110 detached $4,000,000	 Finance

and apartment units	

Kyrgyzs

Microvest I, LP	 Kompanion Financial Group	 Microfinance on-lending	 $700,000	 Insurance

Moldov

Vaja Jhashi	 Kelly Grains Corporation SRL (WBC)	 Grain loading terminal and oilseed crushing facility	 $9,750,000	 Finance

Romani

Sanjay Bhasin	 Netmaster Communications SRL	 Telecommunications	 $2,880,000	 Insurance

The Cooperative Housing

Foundation	 The Cooperative Housing Foundation	 Loans to micro-lenders for SMEs $2,500,000	 Finance
www.opic.gov 33

Russi

Capital International Private ZAO Europlan Portfolio expansion of leased equipment $100,000,000	 Finance

Equity Fund IV and vehicles to SMEs

Dialog International, Inc	 ZAO Aires (WBC)	 Family entertainment center business expansion	 $7,507,500	 Finance

Firebird Management LLC	 SDM BANK (WBC)	 Bank’s SME loan portfolio expansion	 $7,312,500	 Finance

Greenwich Financial Securities, LLC	 Greenwich Financial Services, LLC	 Residential mortgage-backed securities 	 $5,974,180	 Finance

securitization

National City Bank GFA I	 NBD Bank, Joint-Stock Company*	 SME loan portfolio expansion	 $3,000,000	 Finance

National City Bank GFA 2	 Absolut Bank*	 Consumer finance portfolio expansion	 $20,000,000	 Finance

National City Bank GFA 2	 JSC Promsvyazbank*	 Consumer and retail loan portfolios expansion	 $25,000,000	 Finance

James M. Quinn and Century 21 Russia	 Establish Century 21 real estate franchise	 $3,600,000	 Finance

Robert W. Courtney

Wachovia Bank National Assoc.	 Sibacadembank*	 SME retail loan portfolio expansion 	 $20,000,000	 Finance

Melvin Andrew Welch	 ZAO Aston	 Residential, office and retail complex	 $6,500,000	 Finance

Financial Intermediary	 Stack Group	 Data warehousing facilities	 —	 Investment Funds

Financial Intermediary	 ZAO AIST Regional telecommunications provider	 —	 Investment Funds

Financial Intermediary	 PSL Leasing	 Financial leasing services	 —	 Investment Funds

T

Wachovia Bank National Assoc.	 Anadolubank*	 Retail loan portfolio expansion	 $5,000,000	 Finance

Wachovia Bank National Assoc.	 Tekstil Bankasi, AS* Retail loan portfolio expansion	 $10,000,000	 Finance

Wachovia Bank National Assoc.	 Denizbank, Istanbul*	 Retail loan portfolio expansion	 $25,000,000	 Finance

Wachovia Bank National Assoc.	 Tekfenbank* SME loan and/or mortage portfolio expansion	 $5,000,000	 Finance

Wachovia Bank National Assoc.	 Asya Katalim*	 Retail loan portfolio expansion	 $5,000,000	 Finance

Wachovia Bank National Assoc.	 Turk Ekonomi Bank* Retail loan portfolio expansion	 $20,000,000	 Finance

LatiA

Argenti

Arnaldo Rodriguez	 De Sarrollos de Los Suenos, SA Development and operation of tourist lodge	 $1,100,000	 Finance

in Bariloche

Beliz

Vistas Construction of Illinois, Inc	 Vistas Belize Ltd	 Construction of residential compound $13,570,000	 Finance

for US embassy

Bolivi

Delphos International Ltd	 AXS Bolivia SA	 Telecommunications	 $1,035,000	 Insurance

*

*Information has temporarily been redacted, including to protect the safety of implementing partners.
34 opic • 2006 annual rep

Braz

National City Bank GFA 2	 Banco Mercantil do Brasil SA*	 Automobile financing portfolio expansion	 $20,000,000	 Finance

Samba Inc	 Acai do Amapa Agroindustrial Ltda	 Construction of fruit processing plant $3,712,000	 Finance

Samba Inc	 Acai do Amapa Agroindustrial Ltda	 Construction of fruit processing plant $1,799,238	 Insurance

Financial Intermediary	 ALESAT Combustiveis SA	 Gasoline, diesel and alcohol distributor	 —	 Investment Funds

Costa Ric

Colite Outdoor, LLC	 Colite Costa Rica, SA	 Outdoor advertising/billboard leasing	 $279,537	 Insurance

Roberto Zamora Llanes	 Banco Lafise, SA Fixed-rate residential mortgage loan 	 $20,000,000	 Finance

program expansion

Dominic

Dominica Private Power Limited	 Dominica Electricity Services Ltd (“DOMLEC”)	 Electric services	 $3,033,000	 Insurance

Ecu

American Home Assurance Co	 Corporacion Quiport SA	 Airport	 $15,877,917	 Insurance

Guatem

Administradora de Inversiones	 Administradora de Inversiones Peggy, SA	 Residential building	 $617,022	 Insurance

Peggy, SA

Colite Outdoor, LLC	 Colite Guatemala, SA	 Outdoor advertising/billboard leasing	 $279,291	 Insurance

David N. Warren, Jean B. 	 La Futura, SA	 Melon farming and packing facility	 $4,000,000	 Finance

Warren, Michael B. Warren

and Central American Produce, Inc

Haiti

Citigroup Corporate and	 Unigestion Holding SA (Digicel Haiti)*	 Construct/operate greenfield $1,200,000	 Finance

Investment Bank	 telecommunications operation

Hondu

Citigroup Corporate and	 Banco Mercantil, SA*	 SME and mortgage portfolios expansion $15,000,000	 Finance	

Investment Bank

M Homes, LLC	 Honduras Homes, SA	 Worker housing	 $1,125,000	 Insurance

Wachovia Bank National Assoc.	 Banco Atlantida* SME loan portfolio expansion	 $25,000,000	 Finance

Wachovia Bank National Assoc.	 Banco Financiera Comercial Hondurena* Residential mortgage lending portfolio expansion	 $10,000,000	 Finance

Roberto J. Zamora	 Banco Lafise Honduras, SA	 Long-term, fixed-rate USD residential mortgage $10,000,000	 Finance

portfolio funding

Mexic

Azmex Land, LLC	 Salvatierra Desarrollos Urbanos, SA de CV	 Land urbanization for resale to affordable $3,009,300	 Finance

housing builders

Bravo Energy Latin America LLC	 Bravo Energy Mexico SRL de CV	 Used lubricating oil refining facility $6,990,000	 Finance

Citigroup Corporate and	 Credito Inmobilario SA de SV*	 Construction of low-income housing	 $20,769,802	 Finance

Investment Bank	

Inter. Entertainment Holding Corp	 Xtreme Cinemas, S de Rl/Xtreme del Poniente Cinema theatre complexes expansion	 $5,000,000	 Finance

MoladiAmericas, Inc	 Monolithic Housing SA (WBC)	 Construction of 800 affordable residential $7,653,750	 Finance

housing units
www.opic.gov 35

Ocean Farmers, LLC	 Maricultura del Norte, S de RL de CV (WBC)	 Fresh and frozen yellowfish tuna processing 	 $9,652,500	 Finance

expansion

Arnold Rojas Rivas and Corporativo Papelero Y de Suministros BA (WBC)	 Production and distribution of paper products 	 $9,750,000	 Finance

Frank Rojas Rivas expansion

Wade Rain Inc	 Wade Rain de Mexico, S de RL de CV	 Agricultural equipment distribution business	 $2,000,000	 Insurance

Nicara

Riverside Coffee, LLC	 Rio Verde, SA	 Leatherleaf ferns	 $1,467,000	 Insurance

Carlos Rondon, Melva Rondon, 	 Rio Verde, SA Leatherleaf ferns	 $6,040,000	 Finance

Spencer Manners and Melvin Winger

Carlos Rondon J. and Melva Rondon	 Rio Verde, SA	 Leatherleaf ferns	 $733,500	 Insurance

Seminole Tribe of Florida	 Seminole, SA	 Hotel	 $2,200,000	 Insurance

Southern Coastal Properties, LLC	 Southern Coastal Properties Nicaragua, SA	 Resort development	 $4,500,000	 Insurance

Roberto Zamora	 Banco de Credito Centroamericano, SA	 Fixed-rate, USD long-term residential 	 $20,000,000	 Finance

mortgages expansion

Pana

Colite Outdoor, LLC	 Colite Panama, SA	 Outdoor advertising/billboard leasing	 $147,038	 Insurance

Wachovia Bank NA	 Banco Uno SA* Modernize technology and expand credit card 	 $5,000,000	 Finance

portfolio

P

Citigroup Corporate and	 Corporacion Jose R. Lindley, SA-2*	 Coca-Cola distribution plant and $7,352,940	 Finance	

Investment Bank facilities expansion

Phelps Dodge Corporation	 Sociedad Minera Cerro Verde, SAA	 Copper ore mining	 $142,000,000	 Insurance

Latin America and the Caribbean 

14 US Citizens	 Microfinance International Corporation	 On-lending to microfinance institutions in 	 $4,000,000	 Finance

Latin America

Conduit Capital Partners, LLC	 Latin Power Trust III, LP	 Private equity investment fund focused on 	 $60,000,000	 Investment Funds

power sector

Darby Overseas Investments, Ltd	 Darby ProBanco Fund II	 Private equity investment fund	 $45,000,000	 Investment Funds

AllOPIC C

Citibank Corporate and	 Global Framework Facility II	 Framework Agreement	 $150,000,000	 Finance

Investment Bank

Developing World Markets 	 Microfinance Securities XXEB SA Senior, 	 Microfinance project	 $18,600,000	 Finance

Microfinance, LLC Mezzanine and Junior Notes

National City Bank Global Framework Facility III	 Framework Agreement	 $350,000,000	 Finance

Wachovia Bank NA Global Framework Facility III	 Framework Agreement	 $250,000,000	 Finance

*Downstream transactions committed under framework agreements entered into during prior fiscal years.
36 opic • 2006 annual rep

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. 

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 web site www.opic.gov/doingbusiness/ourwork/index.asp 

for up-to-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.

OPIC CO

(As of September 30, 2006)
www.opic.gov 

3

Af

Algeria

Angola

Bahrain

Benin

Botswana

Burkina Faso

Burundi

Cameroon

CapeVerde

Central African Republic

Chad

Congo

Congo, Democratic Republic of

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 As

Afghanistan

Bangladesh

Cambodia

Cook Islands

EastTimor

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 Tonga

Vietnam Euo

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 Lati

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 andTobago

Turks and Caicos

Uruguay
 
www.opic.gov 39

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, 2006 and 2005, 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. 06-03, Audit Requirements 

for Federal Financial Statements. Those standards and OMB Bulletin No. 06-03 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, 2006 and 2005, and the results of its 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 14, 2006, 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 14, 2006

INDEPENDENT AUDITORS’ REPORT ON FINANCIAL STATEMENTS




44 opic • 2006 annual report

(1) Statement of Corporate Purpose

The Overseas Private Investment Corporation (OPIC) is a self-sustaining 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 Significant Accounting Policies

Basis of Presentation: These financial statements have been 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. Treasury: Substantially all of OPIC’s 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 Securities: By statute, OPIC is 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 Insurance 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 straightline 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 Investment Guaranties: The reserves for 

political risk insurance and investment guaranties provide for losses inherent in those 

operations. 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 Interpretation No. 45: In November 2002 the Financial Accounting Standards 

Board (FASB) issued Interpretation No. 45, Guarantor’s Accounting and Disclosure 

No

Overseas Private Investment Corporation — September 30, 2006 and 
www.opic.gov 45

Requirements for Guaranties, Including Indirect Guaranties of Indebtedness of Others (FIN 

45). FIN 45 requires that 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 FIN 45 applies only to 

guaranties issued or modified after December 31, 2002. OPIC’s initial guarantee obligation reported represents the fair value of the investment guaranties. This obligation 

is reduced over the term of the investment guarantee agreements, as OPIC is released 

from its obligation. 

Revenue Recognition: Facility fees are received in advance and 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.

Use of Estimates: The preparation of financial statements requires 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 the loss contingencies, other than 

those related to political risk insurance and investment guaranties, arising from the 

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) Intragovernmental Financial Activities

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, as well as internal U.S. 

Government operating procedures, foreign currency acquired by OPIC can be used 

for U.S. Government expenses. This facility 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.S. Treasury

OPIC is restricted in its uses of certain cash balances, as described below. The fund 

balance with U.S. Treasury as of September 30, 2006 and 2005 consists of the following (dollars in thousands):

2006 2005

Restricted

 Pre-Credit reform   311   2

 Credit reform 852,408 877,82

 Interagency fund transfers 1 

Unrestricted 21,889 14,75

TOTAL $ 874,609 $ 892,823

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 
46 opic • 2006 annual report

guaranties, they are transferred to OPIC’s unrestricted noncredit insurance account. 

In 2006 and 2005, OPIC transferred $1.2 million and $4 million, respectively, to the 

noncredit insurance account. 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 Funding 

OPIC’s finance activities are subject to the Federal Credit Reform 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 

two years. In addition, the Act requires the administrative costs related to its credit 

program to be displayed.

In fiscal year 2006, OPIC’s appropriations legislation authorized the corporation 

to use $20.1 million of its accumulated earnings to cover the future costs of credit 

transactions committed in fiscal years 2006 and 2007. In fiscal year 2005, OPIC was 

authorized to use $23.8 million to cover commitments in fiscal years 2005 and 2006. 

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):

2006 2005

Balance carried forward $ 171,432 $ 173,238

Upward reestimates 134,603 120,41

Transferred from earnings 45,438 49,33

Expired credit funding (45,605) 

Interagency transfers (net) (1,000) 

Credit funding used (181,611) (171,555

CREDIT FUNDING REMAINING   123,257   171,4

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 $134.6 million and $120.4 million and decreases in subsidy costs of $258.8 million and $446.9 million in fiscal years 2006 and 2005, respectively. 

The way in which OPIC calculates the subsidy cost of its loans and guaranties for 

Credit Reform purposes differs from the way it calculates its loss reserves and net 

finance income in accordance with GAAP for financial statement purposes. 

(6) Borrowings From the U.S. Treasury

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

financing activities not funded through the appropriations process must be funded by 

borrowings from the U.S. Treasury. Borrowings for Credit Reform financings totaled 

$210.1 million in 2006 and $152.4 million in 2005, all of which have been disbursed. OPIC paid a total of $41.3 million and $37.2 million in interest to the U.S. 

Treasury during fiscal years 2006 and 2005, respectively. Repayments of borrowings 

from the U.S. Treasury totaled $93.4 million in 2006 and $74.8 million in 2005. 

Future payments for borrowings outstanding at September 30, 2006 are as follows 

(dollars in thousands):

Payment due in

 Fiscal year 2007 $ 31,667

 Fiscal year 2008 21,676

 Fiscal year 2009 28,965

 Fiscal year 2010 57,123

 Fiscal year 2011 64,809

 Thereafter 584,01

TOTAL $ 788,255
www.opic.gov 47

(7) Investment in U.S. Treasury Securities

The composition of investments and related receivables at September 30, 2006 and 

2005 is as follows (dollars in thousands):

2006 2005

Investments, amortized cost $ 4,290,192 $ 4,074,40

Interest receivable 47,033 45,43

TOTAL $ 4,337,225 $ 4,119,837

The amortized cost and estimated fair value of investments in U.S. Treasury securities 

are as follows (dollars in thousands):

Gross

amortized 

cost

Gross

unrealized 

gains

Gross

unrealized 

losses

Estimated 

fair 

value

At September 30, 2006 $ 4,290,192 161,207 (34,041) 4,417,35

At September 30, 2005 $ 4,074,403 209,010 (30,872) 4,252,54

At September 30, 2006, the securities held had an interest range of 2.5% to 14% and 

a maturity period from one month to almost 22 years.

OPIC holds its securities to maturity. The amortized cost and estimated fair value of 

U.S. Treasury securities at September 30, 2006, by contractual maturity, are shown 

below (dollars in thousands):

Amortized 

cost

Estimated 

fair value

Due in one year or less $ 690,258 $ 685,219 

Due after one year through five years 2,229,070 2,223,242 

Due after five years through 10 years 849,002 875,421 

Due after 10 years 521,862 633,476 

TOTAL $ 4,290,192 $ 4,417,358

8) Statutory Limitations on the Issuance of Insurance 

and Finance

OPIC issues insurance and financing under a single limit for both programs, currently $29 billion, fixed by statute in the FAA. At September 30, 2006, OPIC’s insurance 

and finance programs have collectively utilized $11.3 billion.

(9) Political Risk Insurance 

Insurance revenues include the following components for the years ended September 

30 (dollars in thousands):

2006 2005

Political risk insurance premiums $ 22,341 $ 30,711

Miscellaneous insurance income 2,330 71

TOTAL INSURANCE REVENUE $ 24,671 $ 30,78

OPIC’s capital, allowance, retained earnings, and reserves available for insurance at 

both September 30, 2006 and 2005 totaled $1.7 billion. Charges against retained 

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

(B) pending claims under insurance contracts, and (C) guaranties issued in settlement 

of claims arising under insurance contracts. 

(a) Political Risk Insurance

 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.
48 opic • 2006 annual report

 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 

under insurance contracts that result in recoverable assets are reported as 

assets acquired in insurance settlements.

 OPIC’s Maximum Contingent Liability at September 30, 2006 and 2005 was 

$3.7 billion and $4.5 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, 2006 and 2005 was $2.5 billion and $3.1 billion, respectively.

(b) Pending Claims

 At September 30, 2006 and 2005, the total amount of compensation formally requested in insurance claims for which no determination of specific 

liability had yet been made was approximately $3 million and $2.9 million, respectively. 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.

(c) Claims Settlement Guaranties and Indemnities

 OPIC also has off-balance-sheet risk in connection with one claim settlement. OPIC settled a claim in 1991 through a guaranty of $30 million 

of host government obligations. Payments by the host government have 

reduced OPIC’s exposure to $1.4 million and $3.6 million at September 30, 

2006 and 2005, respectively. Any claims that might arise from this settlement are factored into the nonspecific reserve for political risk insurance. 

 Changes in the reserve for political risk insurance during fiscal years 2006 

and 2005 were as follows (dollars in thousands):

2006 2005

Beginning balance $ 315,000 $ 270,000

Amounts charged off (166) 

Increase (decrease) in provisions (23,709) 11,367

Transfers from other reserves 23,875 33,633

ENDING BALANCE $ 315,000 $ 315,00

(10) Investment Financing

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 
www.opic.gov 49

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 2006 

and 2005, $20.1 million and $23.8 million, respectively, 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, 2006 and 

2005 totaled $3.6 billion and $3.3 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, 2006 totaled $1.2 billion, of which $729 million was outstanding. Direct loan exposure at September 30, 

2005 totaled $1.2 billion, of which $619 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 $138.5 million at September 30, 2006 and $51.2 million at September 30, 2005. If interest income had been 

accrued on those loans, it would have approximated $3.6 million during fiscal year 

2006 and $2.1 million during fiscal year 2005. Interest collected on delinquent loans 

and recorded as income when received amounted to $3.5 million and $1.1 million 

for fiscal years 2006 and 2005, respectively.

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

2006 2005

Direct loans outstanding $ 728,827 $ 619,225

Allowance for uncollectible loans (133,327) (127,655

DIRECT LOANS OUTSTANDING, NET $ 595,500 $ 491,57

Changes in the allowance for uncollectible loans during fiscal years 2006 and 2005 

were as follows (dollars in thousands):

2006 2005

Beginning balance $ 127,655 $ 52,462

Amounts charged off (14,416) (324

Recoveries 8 3

Increase in provisions 20,080 75,09

Provision for capitalized interest — 38

ENDING BALANCE $ 133,327 $ 127,65

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 17 years for project finance and from 10 to 12 years for 

investment funds.
50 opic • 2006 annual report

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 $5.5 billion at September 30, 

2006, of which $3.4 billion was outstanding. Of the $5.5 billion of exposure, $3.5 

billion was related to project finance and $2 billion was related to investment fund 

guarantees. Of the $3.4 billion outstanding, $2.8 billion related to project finance 

and $686 million related to investment fund guaranties. Included in the $2 billion 

of investment fund exposure is $353 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, 2006, $186 million of the $353 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, 2005, OPIC’s exposure to credit risk under investment guaranties, 

including claim-related assets, was $7.2 billion, of which $3.7 billion was outstanding. Of the $7.2 billion of exposure, $5 billion was related to project finance and $2.2 

billion was related to investment fund guarantees. Of the $3.7 billion outstanding, 

$2.9 billion related to project finance and $782 million related to investment fund 

guaranties. Included in the $2.2 billion of investment fund exposure is $488 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, 2005, $274.5 million of 

the $488 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 2006 and 2005 

were as follows (dollars in thousands):

2006 2005

Beginning balance $ 625,000 $ 667,000

Amounts charged off — (87,455

Recoveries 9 3,18

(Decrease) increase in provisions (5,009) 42,275

ENDING BALANCE $ 620,000 $ 625,00

(11) Accounts Receivable from Investment Guaranties and Assets 

Acquired in Insurance Claims Settlements (Claim-Related Assets)

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 5 to 15 years.

Accounts receivable resulting from investment guaranties were as follows (dollars in 

thousands): 

2006 2005

Accounts receivable resulting from investment

guaranties $ 148,725 $ 101,834

Allowance for doubtful recoveries (25,213) (36,480

ACCOUNTS RECEIVABLE, NET $ 123,512 $ 65,35
www.opic.gov 51

Changes in the allowance for doubtful recoveries for assets resulting from investment 

guaranties during fiscal years 2006 and 2005 were as follows (dollars in thousands):

2006 2005

Beginning balance $ 36,480 $ 83,142

Amounts charged off (3,950) 

Decrease in provisions (8,049) (47,318)

Recoveries 732 65

ENDING BALANCE $ 25,213 $ 36,48

Assets acquired in insurance claims settlements were as follows (dollars in thousands):

2006 2005

Assets acquired in insurance claims settlements $142,685 $221,48

Allowance for doubtful recoveries (21,135) (50,898

ACCOUNTS RECEIVABLE, NET $121,550 $170,58

Changes in the allowance for doubtful recoveries for assets acquired in insurance 

claims settlements during fiscal years 2006 and 2005 were as follows (dollars in 

thousands):

2006 2005

Beginning balance $ 50,898 $ 98,609

Amounts charged off (5,888) (14,078

Transfers to other reserves (23,875) (33,633

ENDING BALANCE $ 21,135 $ 50,89

(12) Reserves and Full Faith and Credit 

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 FY2006 and FY2005, 

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 both September 30, 2006 and 2005, the Insurance Reserve 

totaled $1.3 billion, and the Guaranty Reserve totaled $2.8 billion at September 2006 

and $2.5 billion at September 30, 2005. 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.
52 opic • 2006 annual report

(13) Disclosures About Fair Value of Financial Instruments

The estimated values of each class of financial instrument for which it is practicable 

to estimate a fair value at September 30, 2006 are as follows (dollars in thousands):

Carrying 

amount

Fair 

value

Financial assets:

 Cash $ 874,609 $ 874,609

 U.S. Treasury securities 4,290,192 4,417,35

 Interest receivable on securities 47,033 47,033

 Direct loans 595,500 595,500 

 Accounts receivable from investment guaranties 123,512 123,512

 Assets acquired in insurance claims settlements 121,550 121,550

Financial liabilities:

 Borrowings from the U.S. Treasury   788,225   811,1

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 Securities: The fair values of the U.S. Treasury 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 Investment Guaranties, and Assets 

Acquired in Insurance Claims Settlements: These assets are stated on the balance 

sheet at the 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. Treasury: The fair value of borrowings from the U.S. Treasury is estimated based on the face value 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 Outstanding: OPIC’s 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. 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) Operating Lease 

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 2006 and 2005 was approximately $5.1 million and $4.9 million, 

respectively. Minimum future rental payments under the 15-year lease at 1100 New 

York Avenue, N.W. are approximately $4.1 million annually, with additional adjustments tied to the consumer price index. 

(15) Pensions 

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% of employees’ gross 2006 earnings and contributed 7% of employees’ 2006 

gross earnings. The sums were transferred to the Civil Service Retirement Fund from 

which this employee group will receive retirement benefits. 
www.opic.gov 53

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). 

Based on employee elections, 0% to 10% of gross CSRS earnings is withheld and $0 

to $15,000 of gross FERS earnings is withheld subject to 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 Risk

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, 2006 

and 2005 (dollars in thousands):

2006

Total Outstanding Unused 

commitments

Guaranties $ 6,259,122 $ 4,114,295 $ 2,144,82

Undisbursed direct loans 513,613 — 513,61

Insurance 3,679,952 2,490,365 1,189,58

2005

Total Outstanding Unused 

commitments

Guaranties $ 7,127,950 $ 3,594,490 $ 3,533,46

Undisbursed direct loans 568,863 — 568,86

Insurance 4,512,216 3,122,869 1,389,34
54 opic • 2006 annual report

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, 2006 by major geographical area (dollars in thousands): 

Loan 

guaranties

Undisbursed portion 

on direct loans Insurance

Africa $ 738,037 $ 123,390 $ 630,80

Asia 432,360 57,918 647,47

Europe 966,279 7,475 183,20

Latin America 1,971,807 169,626 1,319,7

Middle East 781,303 40,700 579,92

NIS (New Independ

 States) 1,061,939 77,840 332,237

Worldwide 307,397 36,664 

Insurance stop-loss

 adjustment — — (13,469)

$ 6,259,122 $ 513,613 $ 3,679,952

OPIC has several client-specific contracts with stop-loss limits that are less than the 

aggregate coverage amounts. The insurance stop-loss adjustment represents the difference between the aggregate coverage amount and OPIC’s actual exposure under 

these contracts.

At September 30, 2006, OPIC’s largest finance and insurance exposure was in the 

following countries and sectors (dollars in thousands):

Country Sector

Turkey $ 698,082 Financial services $ 3,800,37

Russia 697,653 Power generation 2,322,5

Columbia 677,315 Oil and gas services 180,6

Nigeria 608,317 Manufacturing 824,20

Venezuela 560,908 Construction 753,2

(17) Other Contingencies

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 Requirements for Guaranties

In FY 2006 and FY 2005 pursuant to the requirements of FIN 45, OPIC recognized a 

guaranty liability and a guaranty fee receivable of $167.3 million and $152.7 million, 

respectively. OPIC collected $28.4 million and $17.2 million of guaranty fees in FY 

2006 and FY 2005, respectively, on the investment guaranties issued since December 

31, 2002.

(19) Statutory Covenants

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.
www.opic.gov 55

Randall L. Tobias 

Administrator

U.S. Director of Foreign Assistanc

U.S. Agency for International Development

Ambassador Karan K. Bhatia 

Deputy U.S. Trade Representati

Office of the U.S. Trade Representative 

Robert Mosbacher, Jr. 

President & Chief Executive Offi

Overseas Private Investment Corporation 

Dr. David A. Sampson 

Deputy Secretary of Commerce

U.S. Department of Commerce 

Steven J. Law 

Deputy Secretary of Labor

U.S. Department of Labor 

Ambassador Josette Sheeran 

Under Secretary of State for Economic

Business & Agricultural Affair

U.S. Department of State 

Timothy D. Adams 

Under Secretary for International Affai

U.S. Department of the Treasury 

Samuel E. Ebbesen 

(General, USA, Re

President & Chief Executive Offi

Virgin Island Telephone Corporation 

St. Thomas, Virgin Islan

Collister Johnson, Jr. 

President–Federal Systems Division

AmCad LLC 

Reston, Virgini

Christopher J. Hanley 

General Secretary-Treasure

International Union of Operating Engineers 

Washington, 

Diane M. Ruebling 

President

The Ruebling Group 

Scottsdale, Arizona / Longville, Minneso

Ned L. Siegel 

President

The Siegel Group 

Boca Raton, Florida

C. William Swank 

Retired Executive Vice Presid

Ohio Farm Bureau Federation 

Westerville, Ohi

Sanford L. Gottesman

President

The Gottesman Company 

Austin, Tex

OPIC BOA
56 opic • 2006 annual report

Ofc

Robert Mosbacher, Jr.

President & Chief Executive Officer

John Simon

Executive Vice President

Joseph Flynn

Chief of Staff

Dulce Zahniser

Deputy Chief of Staff & 

Senior Advisor to the President

Vi

Edith Quintrel

Vice President

Insurance Department

Robert Drumheller

Vice President

Structured Finance Department

James Polan

Vice President

Small and Medium Enterprise Finance Department

Cynthia Hostetler

Vice President

Investment Funds Department

Daniel Nichols 

Vice President

Office of Economic Development

Howard Burris 

Vice President & Chief Financial Officer

Office of the Chief Financial Officer

Mark Garfinke

Vice President & General Counsel

Legal Affairs Department

Christopher Coughlin

Vice President

Office of External Affairs

Christine Emery

Vice President

Office of Investment Policy

OPIC E

PHOTOGRAPHY CREDI

Page 3 Martin Simon

Page 6 Edward W. Jackson,

Sweetwater International

Page 8 Carla Chissell, OPIC

Page 9 Karl Christensen, OPIC

Page 10 OPIC

Page 12 OPIC

Page 13 OPIC

Page 14 LaGray Chemical Compan

Page 16 Autopista Vespucio Norte (AV

Page 17 Edward W. Jackson,

Sweetwater International

Page 18 Edward W. Jackson,

Sweetwater International

Page 20 Dulce Zahniser, OPIC

Page 21 Dulce Zahniser, OPIC

Page 22 Dulce Zahniser, OPIC

Page 24 John Aldonas, OPIC

Page 25 Edward W. Jackson,

Sweetwater International

Page 26 National Urban 

Reconstruction and Housing

Agency (NURCHA)

Page 28 Thomas Debass, OPIC

Page 29 Maskan, Inc.