View this article online: https://www.insurancejournal.com/news/international/2008/03/13/88175.htm
Zurich’s Emerging Markets Unit has provided political risk insurance for a hydroelectric power plant in Sri Lanka. “This project was developed in cooperation with the Overseas Private Investment Corporation (OPIC), which will provide financing and reinsurance for the plant,” said the bulletin.
Zurich is providing political risk coverage to the U.S. sponsor of the five-megawatt hydropower plant on the Weli River in south central Sri Lanka. OPIC will provide a $4.3 million loan to MaTh Hydro Power, the project company, for construction of the plant, as well as $1.4 million in reinsurance for Zurich’s political risk coverage of the project.
Zurich noted the plant’s construction “helps Sri Lanka address a growing need for electricity while encouraging private sector investment in this industry. It fits with Zurich’s recently launched climate initiative. Zurich is focused on providing solutions for a myriad of risks associated with climate change. ”
Daniel Riordan, executive vice president and managing director for Zurich’s emerging markets unit, indicated the Company was “very pleased to be involved with OPIC, a fellow member of the Berne Union (BU), on this environmentally sensitive project. Zurich is committed to working with companies in emerging markets to address the risks associated with alternative energy projects. Political risk coverage is particularly important to private investors working with foreign governments to address the growing demand for efficient power sources.”
Source: Zurich – www.zurich.com