Zurick Provides Political Risk Insurance for WAPCo Pipeline
Zurich's U.S.-based unit offering insurance solutions for emerging markets risks is providing political risk insurance for investments made by the West African Gas Pipeline Company (WAPCo) to build a natural gas pipeline in West Africa. Zurich is reinsuring a portion of the exposure through the Overseas Private Investment Corporation (OPIC). The project also has the participation of the World Bank Group through the International Development Association and the Multilateral Investment Guarantee Agency.
The project involves constructing a 372-mile pipeline to transport natural gas from Lagos State in Nigeria to Benin, Togo and Ghana. The natural gas will be used primarily for electricity generation. WAPco, the operating entity established to construct, own and operate the pipeline, is owned by ChevronTexaco West African Gas Pipeline Ltd., Shell Overseas Holding Ltd., the Nigerian National Petroleum Corporation and the Takoradi Power Company Ltd.
"Our ability to partner with OPIC enabled both organizations to respond to the needs of WAPCo and the West African region," said Daniel Riordan, Executive Vice President and Managing Director of Zurich's emerging markets unit. "This project will bring a host of benefits to the area, creating job opportunities and protecting the environment by using cleaner fuel to generate electricity."
Zurich's emerging markets unit is headquartered in Washington, D.C. with offices in London, Barcelona, Hong Kong and Tokyo. It provides political risk and trade credit insurance to multinational corporations, investors, infrastructure developers, exporters and international financial institutions, providing coverage for customers in 102 countries.