28 January 2002

U.S. to Provide $50 Million in Credit for Afghanistan Investment

The U.S. Overseas Private Investment Corporation (OPIC) will provide an initial $50 million in credit for U.S. investment in Afghanistan, OPIC says.

Officials from OPIC, the Export-Import Bank and the U.S. Trade and Development Agency (TDA) will go to Afghanistan in February to conduct an investment assessment, according to a January 28 OPIC press release.

The credit will go to projects with substantial U.S. participation, the release said. Projects also should promise significant economic and social benefits to Afghanistan and foster private sector competition in the country, it said. Preferential consideration will be given to projects that involve small businesses, the release said.

"Economic growth generated by investment stands to be the most sustainable and diffuse," Peter Watson, OPIC president, said in the release.

Three weeks ago OPIC co-hosted the first high-level discussion of private-sector involvement in Afghanistan among Afghan-American business leaders and senior U.S. officials.

OPIC, The Export-Import Bank and TDA are government agencies that help finance U.S. foreign investment.

Following is OPIC's press release:

Washington, D.C. -- As part of the Bush Administration's commitment to the economic reconstruction of post-Taliban Afghanistan, the Overseas Private Investment Corporation (OPIC) announced today that it would establish an initial $50 million line of credit to support U.S. investment in that country, and that OPIC, U.S. Export-Import Bank and U.S. Trade and Development Agency officials would conduct an investment assessment mission to Afghanistan in February.

President Bush outlined the initiatives in a joint statement with interim Afghan leader Chairman Hamid Karzai today, saying, "Our joint commitment to the development of Afghanistan's private sector will be bolstered by an initial U.S. Overseas Private Investment Corporation $50 million line of credit to finance qualified U.S. private sector projects."

OPIC President and CEO Dr. Peter Watson said, "Post-Taliban Afghanistan will require not only humanitarian assistance, but support as it rebuilds its economy and economic institutions, including a capacity to make use of foreign direct investment in a way that benefits as many Afghans as possible. Economic growth generated by investment stands to be the most sustainable and diffuse -- two outcomes certainly we all support."

The $50 million line of credit will be available to projects which demonstrate a substantial U.S. participation, promise significant benefits to the economic and social development of Afghanistan, and foster private sector competition in the country. OPIC will not support projects that could result in the loss of American jobs. OPIC gives preferential consideration to projects that significantly involve U.S. small businesses.

Today's announcement is the latest of several OPIC initiatives in support of Afghanistan's economic development. Three weeks ago, OPIC co-hosted the first high-level discussion of U.S. private sector involvement in post-Taliban Afghanistan, assembling more than 40 Afghan-American business leaders and senior U.S. officials to outline investment opportunities in the war-torn country. In December, Dr. Watson and OPIC Executive Vice President Ross Connelly told Afghanistan's finance minister-designate, Hedayat Amin-Arsala, that OPIC would work to attract U.S. private sector investment to the country.

OPIC's political risk insurance and financing help U.S. businesses of all sizes invest in 140 emerging markets and developing nations worldwide. Over the agency's 30-year history, OPIC has supported $138 billion worth of investments that have helped developing countries to generate over $10 billion in host-government revenues and create nearly 668,000 host-country jobs. OPIC projects have also generated $63.6 billion in U.S. exports and create nearly 250,000 American jobs.