04/25/2003

OPIC Approves $200 Million in Financing for New Airport in Ecuador

Financing will allow greater commercial air traffic and safety

The U.S. Overseas Private Investment Corporation (OPIC) has approved up to $200 million in financing for the construction of a new international airport in Quito, Ecuador.

In an April 24 press release, OPIC said it will provide an investment guaranty to Corporacion Quiport S.A., established in part by the U.S. company HAS Development Corporation, which is affiliated with the Houston Airport System. The financing will be used for the construction of a new airport 25 kilometers outside of Quito. The location of the existing Mariscal Sucre International Airport in the center of Quito, combined with its short runways, limits both aircraft payload and revenue-generating capacity.

"Construction of a new international airport will facilitate economic growth in Ecuador by providing more reliable, safer, better airport operations, and by mobilizing additional investment in the transportation infrastructure of the country," said OPIC President Peter Watson.

OPIC is a U.S. government agency that sells political risk insurance and loans to help U.S. businesses invest and compete in more than 150 emerging markets and developing nations worldwide.

Following is the text of the OPIC press release:

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OVERSEAS PRIVATE INVESTMENT CORPORATION
Washington, D.C.

FOR IMMEDIATE RELEASE
Thursday, April 24, 2003

For further information, contact:
Lawrence Spinelli, (202) 336-8690
Timothy Harwood, (202) 336-8744

OPIC BOARD APPROVES FINANCING FOR NEW INTERNATIONAL AIRPORT IN ECUADOR

WASHINGTON, D.C. -- The board of directors of the Overseas Private Investment Corporation (OPIC) today approved up to $200 million in OPIC financing for the construction of a new international airport in Ecuador, enabling the country to move one of its two main airports out of the center of Quito and thereby accommodate greater commercial air traffic and improve safety.

OPIC will provide an investment guaranty to Corporación Quiport S.A. (Quiport), established in part by U.S. sponsor HAS Development Corporation, affiliated with the Houston Airport System, for the construction of a new airport approximately 15 miles outside Quito and the continued operation of the existing airport until the new one is completed. Quiport won a concession to undertake the project in January 2002.

Establishment of a new airport has been a priority for the Ecuadorean government: the downtown location of the existing airport, Mariscal Sucre International Airport, as well as its short runway length, restricts approach and take-off paths and thus limits aircraft payload and revenue-generating capacity. The existing airport currently handles approximately 2.4 million passengers per year, and Ecuador has experienced stronger growth in total freight traffic than the regional average during the 1990s.

"Construction of a new international airport will facilitate economic growth in Ecuador by providing more reliable, safer, better airport operations, and by mobilizing additional investment in the transportation infrastructure of the country," said OPIC President and CEO Dr. Peter Watson. "OPIC is pleased to work with a respected U.S. company such as HAS Development Corporation, affiliated with the Houston Airport System, to bring so many developmental benefits to the people of Ecuador."

Dr. Watson added that the project will generate a positive impact of $7.6 million on the U.S. balance of payments, as well as approximately 250 U.S. jobs through additional procurement.

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 U.S. 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 $145 billion worth of investments that have helped developing countries to generate over $11 billion in host-government revenues and create over 680,000 host-country jobs. OPIC projects have also generated $65 billion in U.S. exports and created more than 254,000 American jobs.

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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)