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	Overview of the Problems
	Highlight: Russia's Sakhalin II
	Highlight: The BTC Pipeline

United States: OPIC

The Overseas Private Investment Corporation (OPIC) provides political risk insurance, project finance, and investment funds to US businesses investing abroad. Projects supported by OPIC include the Dabhol power plant, the Casecnan Dam, Paiton Energy, East Kalimanton Unocal oil and gas field, Sakhalin II, and the San Jose Power Station. In 1992, Enron established the Dabhol Power Company (DPC) to construct a power plant in Maharashtra, India. The Maharashtra State Electricity Board (MSEB) agreed to purchase the plant’s electricity, despite the over inflated cost. In 2001, the MSEB could no longer afford to patronize the DPC and withdrew from the agreement. Later that year, Enron declared bankruptcy and the government of Maharashtra was left with a closed power plant. OPIC held the government of Maharashtra responsible for the power plant’s debt and sued them for the loss of their investment. Other OPIC supported projects draw their host countries into debt as well. OPIC supported California Energy with a $100 million loan guarantee and $150 million in insurance to operate the Casecnan Multipurpose Irrigation and Power Project in the Philippines. The Philippine government is required to purchase the energy generated by the dam regardless of how much the country requires. The price of the energy rises every year much faster than the rate of inflation of the American dollar, the currency which the deal operates by. The plant may close now due to California Energy’s unpaid property taxes. OPIC guaranteed an oil and gas mining facility off the coast of East Kalimantan in Indonesia. It has caused the dislocation of native communities multiple times as the plant expanded. Many people live close to the power plant after being removed from their own land and are exposed to pollution from the plant. This has had a great affect on the stability of their agriculture as well as their health and community structure. OPIC provided a USD $116M guarantee to Sakhalin Energy during the first phase of construction of Sakhalin II (the phase when Texas-based Marathon Oil Company was involved). Construction of the Sakhalin II pipeline and drilling platforms off Russia’s Sakhalin Island is a threat to the survival of the critically-endangered Western Pacific Gray Whale, and construction of its LNG plant is wreaking havoc on the local infrastructure. Construction of the pipeline is protested by Sakhalin's indigenous peoples and other groups, including local and international NGOs. The Florida firm Teco Power Services received a USD $32M loan to take part in operation the San Jose Power Station in Guatemala. This power station has violated standards of the International Labor Organization and the rights of its workers by firing workers attempting to unionize in 1999.

OPIC News 2004-2005:

Bush nominates Mosbacher to post: Agency insures risky US deals in developing nations July 30, 2005 By BILL MURPHY, Houston Chronicle

More about Mosbacher's past:
Mosbacher: the outside insider: Repeat candidate knows politics but hasn't been elected August 22, 1997 By ALAN BERNSTEIN Houston Chronicle -- "Seven months after the Exxon Valdez oil spill in Alaskan waters, Mosbacher said during a 1989 speech to a Texas oil industry association that 'the saddest thing about Valdez was that Congress found renewed enthusiasm for oil spill legislation.' He explained later that he supported legislation against oil spills, but that knee-jerk reactions to environmental tragedies were sometimes misguided."

OPIC OKs Loans for Firms Tied to Mafia June 27, 2005 Matt Kelley, Associated Press Writer (via KFMB.com)

OPIC Approves $54 Million for Silver Mine in Bolivia January 21, 2005

OPIC To Provide $300M For Natural Gas Development in Egypt January 20, 2005

OPIC Promises $250M in Support to Israeli Gas Pipeline November 22, 2004

OPIC Sues Indian Government Over Dabhol November 19, 2004

OPIC May Fund Alumina Refinery in Conflict-Torn Guinea October 21, 2004

OPIC to Search for Dabhol Power Plant Sponsor August 19, 2004

OPIC to Finance Botswana’s First Coal Bed Methane Wells August 13, 2004

OPIC Considering Funding More LNG in Nigeria August 2, 2004

Up to $135M Political Risk Insurance Granted by OPIC for Major Bolivian Silver Project August 2, 2004

InterOil Enters Stock Market as its OPIC-backed Papua New Guinea Refinery Draws “First Oil” July 14, 2004

OPIC's 2003 Environmental Report Now Online April 2004