This was revealed by US Ambassador Francis Ricciardone in a speech during the signing of a memorandum of understanding (MOU) between OPIC and the Philippine Export and Import Corp. last Dec. 17.
"OPIC is heavily involved in funding the energy sector in the Philippines. We’re moving ahead, with OPIC involved in a $250-million bond offering for the Napocor," Ricciardone said.
The US official, however, said the involvement of OPIC in Napocor’s bond flotation will hinge on many factors.
"This, however, is subject to some action on the Philippine side. The Monetary Board (of the Bangko Sentral ng Pilipinas) has to act, but I understand that will be happening soon," he said.
It will be recalled that the Power Sector Assets and Liabilities Management Corp. (PSALM) has postponed its planned $250 million bond offering to first quarter of 2003 from earlier schedule of last quarter of 2002 when the country was unable to fulfill one of the important criterion being asked by the investors’ community which is the privatization of the country’s transmission backbone. PSALM will handle all the assets and liabilities of Napocor under the Republic Act No. 9136 or Electric Power Industry Reform Act. Ricciardone noted that OPIC has invested $142 billion in developing countries. These investments, he said, have helped developing countries on their own.
"They have created more than 673,000 jobs outside the United States," the US official said.
He said the OPIC planned investment is an indication of US government’s confidence in the Philippines. "The bottomline is the United States has confidence in this country. That’s why we’re, here that’s why the United States, OPIC has signed this MOU with Phil-Exim: because we believe doing business with the Philippines makes sense," he added.
The OPIC is a US government agency that sells political risk insurance and loans to help US businesses of all sizes invest and compete in more than 140 emerging markets and developing nations worldwide. It charges market-based fees for its products, and therefore operates on a self-sustaining basis at no net cost to taxpayers.