Zurich insures Sri Lanka project

Asia

Switzerland’s Zurich Financial Services is providing the political risk coverage for the US sponsored five-megawatt hydropower plant project on the Weli River in south central Sri Lanka. Zurich is working in close co-operation with the Overseas Private Investment Corporation (OPIC). The latter is the US state-owned private sector investment vehicle. OPIC generally provides finance and guarantees for US sponsored trade projects overseas. In this case, OPIC will provide a $4.3mn loan to the company managing the project and will also provide $1.4mn in reinsurance for the project. Daniel Riordan, executive vice president and managing director for Zurich’s emerging markets unit said that the hydropower plant would help Sri Lanka address a growing need for electricity while encouraging private sector investment in this industry. He added that the project fitted well with Zurich’s recently launched climate initiative. Last year the company employed former UK prime minister, Tony Blair, as its ambassador on global environmental issues emerging markets to address the risks associated with alternative energy projects.