- No, not the oil cartel, that,s OPEC (although it wouldn,t
be a bad idea to abolish that as well). OPIC is the little known government
agency Overseas Private Industry Corporation. Its charter is to use millions
of the taxpayers, dollars to help American companies create jobsin foreign
countries. Although structured like a corporation with a board of directors,
it actually is an independent agency in the executive branch nominally
reporting to the Office of Management and Budget.
President, CEO and Chairman of the Board is Peter S. Watson. He is well
connected in various organizations dealing with international law, a former
Chairman of the U.S. International Trade Commission, former director of
Asian affairs at the National Security Council and, to no one,s surprise,
a member of the Council on Foreign Relations (CFR).
OPIC provides its support to over 400 U.S. companies in over 100 countries.
It provides insurance coverage (I) of up to $250 million against currency
incontrovertibility, expropriation, and loss of assets due to political
violence, wars, etc. It can also provide financing (F) of up to $250 million
per project (not per company) however total financing and insurance provided
cannot exceed $400 million. Financing can be through direct loans or loans
from investment banks which OPIC says are guaranteed by the full faith
and credit of the United States (which means the U.S. taxpayers).
OPIC claims it only provides support in cases where the private sector
cannot, or will not. (If you believe that there is a bridge in Brooklyn
for sale. See partial list of "clients below.) It says it charges
interest and insurance fees at "market rates, but doesn,t say how
that is determined.
OPIC serves small medium and large businesses. Support to small companies
typically ranges from $100,000 to $2 million.
The following is a partial listing of projects supported in 2002 (latest
figures available)
S & N Pump Company repair facility in Africa $495,000 (Finance0.
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- Pride Forasol SAS Medical facility in Ethiopia $489,677
(Finance)
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- Chad Pride Int,l. Oil and gas drilling $100 million (Insurance).
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- Ghana B & C Management. Gravel quarry $168,560 (Finance
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- Namibia Diamond Fields Int,l. Diamond mining $15 million
(Finance)
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- South Africa Soros Economic Development. Residential
housing $15 million (Finance).
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- Unocal Corp. Oil and gas exploration and production $340
million (Finance).
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- Pakistan Remington Holdings. Purchase oil and gas concessions.
$130,750,000 (Finance)
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- El Paso Corp power plant $23 Million (Insurance). - Private
company
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- Citibank N.A. Pakistan lending facility $75 million (Finance).
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- NIS Regional Caucasus Citibank lending facility $150
million ((Finance).
OPIC claims that by creating jobs in foreign countries it enables them
to by American products thus creating jobs in the U.S.
What do you think?
It sounds like just another corporate welfare program to this writer.
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purposes.)
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