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Africa News afrol News
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Africa News afrol News
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afrol.com, 14 September - During a meeting yesterday with President Teodoro Obiang Nguema Mbasogo of Equatorial Guinea, Kirk Robertson, Executive Vice President of the US federal Overseas Private Investment Corporation (OPIC), encouraged President Obiang to continue reform of worker rights and political institutions in the West African nation, and invited US companies to consider the country as a destination for their investment. Robertson does, however, not present any documentation of the alleged achievements in reforming worker rights in Equatorial Guinea so far. In contrast to Robertson's positive assessments, 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." Robertson, on the other hand noted: "Equatorial Guinea, bolstered by recent investments in the oil sector and average GDP growth of 22 percent since 1996, has taken the bull by the horns in seeking foreign investment, and American companies should take notice: as it continues to reform its worker rights and business practices, Equatorial Guinea should be considered a viable destination for US investors". "OPIC commends President Obiang for his recent steps to ensure strict observance of worker rights, and encourages him to continue this trend as part of ensuring an investment climate attractive to US companies," Robertson added. Robertson noted that in June OPIC's Board of Directors approved a US$ 173 million guaranty for the construction, ownership and operation of a methanol plant in Equatorial Guinea -- the agency's largest-ever loan to a project in sub-Saharan Africa. 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," Robertson said. "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," Robertson said, noting that International Labor Organization labor standards will be followed and thus set an example of good labor practices in the country. On the American side, the project will result in projected U.S. procurement of US$ 280,5 million over five years and will create approximately 766 American jobs, and will generate a positive US net balance of payments of US$ 165 million during its first five years. OPIC is a self-sustaining 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 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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