The Overseas Private Investment Corporation (OPIC) is providing $100 million in political risk insurance for commercial bank loans being made for the Baku-Tbilisi-Ceyhan (BTC) pipeline project, a network that extends from Azerbaijan and Georgia to Turkey.
The BTC pipeline will provide the infrastructure necessary to transport oil produced in the Caspian Sea over a distance of about 1,750 kilometers to the Mediterranean Sea, enabling Azerbaijan, Georgia and Turkey to realize a vital economic priority, said OPIC President and CEO Peter Watson.
The BTC pipeline will transport about one million barrels of oil per day, generate approximately $262 million in annual revenues for the three host countries, and will protect the Bosphorus Straits from additional oil tanker traffic. Construction of the pipeline is already underway, and is due to be completed in 2005.
The BTC pipeline is the largest foreign investment currently being undertaken in any of the three host countries. The project will generate nearly 9,800 local jobs at the peak of construction, as well as 700 full-time jobs once operation of the pipeline begins.
OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.
OPIC's political risk insurance and financing help US businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency's 32-year history, OPIC has supported $150 billion worth of investments that have helped developing countries to generate over 690,000 host-country jobs. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
