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afrol.com, 14 June - The Board of Directors of the US government agency, the Overseas Private Investment Corporation (OPIC), today approved the agency’s largest-ever loan to a project in sub-Saharan Africa, a US$ 173 million guaranty for the construction, ownership and operation of a methanol plant in the West African nation of Equatorial Guinea. The Board also approved up to US$ 200 million in political risk insurance for the project. "This project is a leading example of OPIC’s concerted effort to play a more instrumental role in sub-Saharan Africa. This project represents a major investment by substantive US sponsors in the region and is a strong credit in the oil and gas industry," said OPIC President and CEO George Muñoz. "It contributes simultaneously to private sector development in Equatorial Guinea and the improvement of local air quality, by processing gas that would otherwise be flared." The plant will be located on the island of Bioko in Equatorial Guinea and will be managed by the Atlantic Methanol Production Company, which is owned by CMS Enterprises and Nobel Affiliates and the Guinean government. With a total project cost of US$ 450 million, the plant will generate 2.500 metric tons per day of methanol from natural gas. "This project will improve the skill level of the local workforce through a training program, and will create 85 permanent jobs in Equatorial Guinea," Muñoz said, noting that International Labor Organization labor standards will be followed and thus set an example of good labor practices in the country. Muñoz praised Board member Ambassador Alan P. Larson, who is Acting US Under Secretary of State for Economic, Business and Agricultural Affairs, for providing valuable advice and supervision of the workers’ rights monitoring process. "Ambassador Larson’s strong commitment to workers’ rights on this project has given OPIC an added measure of confidence that it will serve as a model for developing countries eager to attract US investment," Muñoz said. Ambassador Larson said, "While the Board is excited to provide Equatorial Guinea this strong opportunity for economic development, we are equally pleased to ensure that it meets internationally-recognized standards for treatment of workers. This should demonstrate that, far from being mutually exclusive, business opportunity and respect for rights are two sides of the same developmental coin. This project moved forward because of the cooperation between governments, U.S. government agencies, and the private sector sponsor." OPIC does, however, not present any documentation of the alleged achievements in reforming worker rights in Equatorial Guinea so far. In contrast to the positive assessments OPIC, another US federal agency, the Bureau of Democracy, Human Rights, and Labor (U.S. Department of State) notes the following on worker rights in Equatorial Guinea: "The Labor Code provides for comprehensive protection for workers from occupational hazards; however, the Government does not enforce this in practice. Employees who protest unhealthy or dangerous working conditions risk losing their jobs." "On the American side, it will result in projected US procurement of US$ 280,5 million over five years and will create approximately 766 American jobs. The project will generate a positive US net balance of payments of US$ 165 million during its first five years," Muñoz added. Muñoz added that 1999 was a record year for OPIC’s efforts to attract US investment to Africa, tripling OPIC business on the continent to a level higher than its portfolio in Asia or the countries of the former Soviet Union. OPIC’s loans and political risk insurance supported three times more business projects in Africa in 1999 than in 1998 and its total dollar support for American investments in Africa rose by more than 36 percent. OPIC is a self-sustaining US federal agency that sells investment services to small, medium and large American businesses expanding into some 140 developing nations and emerging markets around the world. OPIC’s political risk insurance, project finance and investment funds fill a commercial void, create a level playing field for US businesses and support development in emerging economies. Since 1971, OPIC has supported nearly US$ 130 billion worth of investments that will generate over US$ 61 billion in US exports and create or support more than 242.000 American jobs.
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