U.S. to pay $48 million to cover damages to Gaza power station(OPIC & Enron legacies)

Haaretz ^ | 22:22 01/07/2006 | Akiva Eldar

[JerseyHighlander]

Last update - 22:22 01/07/2006 U.S. to pay $48 million to cover damages to Gaza power station By Akiva Eldar, Haaretz Correspondent and Haaretz Service

United States officials said they expect that U.S. funds will be used to pay for the damages caused by an Israel Air Force strike Tuesday on a Palestinian power station in the Gaza Strip. The power station was insured by a U.S. government agency, according to The Boston Globe.

The Foreign and Defense Ministry departments that oversee foreign relations were unaware of the decision to target civilian facilities in the Strip, or the decision to attack the power station. Because of this, officials did not know that the station was insured by a U.S. government agency. Israel did not inform the U.S. prior to attacking the power station.

[Hoodlum91]

People from Connecticut want to kill us?

(The insured is the Morganit Group - based in CT)

[puppypusher]

People from Connecticut want to kill us?

(The insured is the Morganit Group - based in CT)

I don't care what state the money is coming from the U.S. government should stop subsidising these palestinian terrorist who just happen to have a government that they have hijacked.

Let them pay for their own power plant.

[Hoodlum91]

The owners of the power plant are in your state. Maybe you should do something to kick them out.

[OkieDoke]

I agree completely! It's crazy to subsidize the people who were cheering in their streets 9/12/2001.
Slip the Israelis' leash. Let `em go.
If an American insurer will take that risk,
"`Tough titty', said the kitty."

[familyop]

The Morganti Group also did a "Palestinian" water project (paid for by taxpayers through USAID as part of $72 million in projects).

http://telaviv.usembassy.gov/publish/peace/archives/1999/december/me1206b.html

[John Lenin]

Ridiculous. This is why the war never ends.

[monkeyshine]

Someone should double check on this. The IDF struck 2 transformers. How much do those cost to repair/replace?

[ArmyTeach]

Why are we in this business at all! Time to make sure there are no more little surprises like this.

[familyop]

DANBURY, CT Political Contributions by Individuals

"Takla, Nabil M Mr. (The Morganti Group/Corporate Execut), (Zip code: 06811) $500 to NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE on 08/02/04"

"TAKLA, NABIL M. MR. (THE MORGANTI GROUP INC./CORPORATE O), (Zip code: 06811) $2000 to BUSH-CHENEY '04 (PRIMARY) INC. on 07/23/03"

"TAKLA, NADA N. MR. (THE MORGANTI GROUP/EXECUTIVE VP), (Zip code: 06811) $2000 to BUSH-CHENEY '04 (PRIMARY) INC. on 07/23/03"

[Joan Kerrey]

Will they deduct this amount from the foreign aid they give to Israel this year?

$48,000,000 to bring hardship for Hamas' leadership is better spent than $48,000,000 for an outdoor teahouse in Habuko Alaska or a teacup museum in Forklift, Ohio.

For $48,000,000 maybe the Palestinians will rethink their responsibilities during the voting process. Elect terrorists and you get terror and destruction. Expensive lesson but a few more like it might wake them up.

Also I hope there will be eviro studies, building commissions etc. involved which might delay the project for months. Destruction seems to be all the Palestinian leadership understands. They might react positively once their entire infrastructure is gone.

The next Israeli raid might destroy the communications systems throughout Gaza. Then maybe sramble interference signals blocking even satellite signals. Cut them off completely from the rest of the world. They need to pay dearly for their continued terrorism.

[NicknamedBob]

So the good news for the Palestinians is that thousands of dollars will be coming their way very soon!


The bad news is that FEMA will be handling the disbursement.

[TheSpottedOwl]

The info was revealed within 6 hours of the bombing of the power station, the US partially paid for, and wholly insured through OPIC programs this subsidized power plant. Best kicker is that it was Enron who originally pushed this through.

I.AM.SCREAMING! In my head of course. Wouldn't want the neighbors to think I was being butchered.

Lets all gather around a campfire in the desert and engage in primal scream therapy ping :(

[FRONTLINER]

This has to be a joke ?

[TheSpottedOwl]

Someone should double check on this. The IDF struck 2 transformers. How much do those cost to repair/replace?

Are you kidding? We're talking about primitive homo sapiens who still use their hand to wipe their rear ends, and teach their kids to blow themselves up. They know transformers?

I don't care how much it costs to repair or replace them. Suha Arafat can put a call in to So Cal Edison, and charge it to her credit card.

[snowsislander]

The US taxpayer was involved in this in so many ways it's hard to count. Paid for R&D of plane, laser guided bomb, possibly training of the pilot, possibly the bomb itself, the power plant was funded in part with US taxzpayer monies, it was insured by OPIC, which is fully backed by the US taxpayer. The insurance will pay out $48 million directly to Khoudry, who will probably have to pocket the money since Israel will not allow the repair/rebuilding of the plant without something tangible in return this time, i.e. more US taxpayer subsidies to Israel.

It's hard not to laugh at the ridiculously sublime nature of the misfortune of US taxpayers in this situation.

Actually, this U.S. taxpayer is finding it difficult to see anything amusing about this.

It's entirely possible that we might actually pay out up to 2.7 times the installation cost of this power plant to make up for loss of future earnings and capital equipment. From OPIC's web pages:

Extent of Coverages

Term

The term of an insurance policy for an equity investment may extend up to a maximum of 20 years. For loans, leases, and transactions covered by the contractors and exporters program, the term is generally equal to the duration of the underlying contract or agreement.

Self-Insurance Requirement

OPIC can insure up to 90 percent of an eligible investment. OPIC’s statute generally requires that the investor bear at least 10 percent of the risk of loss. However, loans and capital leases from financial institutions to unrelated third parties may be insured for 100 percent of principal and interest.

Coverage Multiples

For equity investments, OPIC typically issues insurance commitments equal to 270 percent of the initial investment — 90 percent representing the original investment and 180 percent to cover future earnings. Coverage amounts may be limited for investments in countries where OPIC has a high portfolio concentration.

[dufekin]

Can't we use our terrorist financing programs to freeze that $48 million asset immediately upon paying it? Or can we get Israel to drop an octet of MOABs on Gaza, then pay the $48 million in live pigs to eat through the rubble? Let's get creative here.

[SE Mom]

Shaking my head over this one...whew..

[Memphis Moe]

JUST SAY NO!

Welch on the deal. How stupid can we be?

[JohnBovenmyer]

The article says this policy "covers instances of political violence, which include wars and acts of terror." Doubtless that's why they went to the Clinton insurance agency; nobody else would cover such.

[Centurion2000]

Welch on the deal. How stupid can we be?

Stupid enough to ensure a Palestinian power plant apparently. What's next? Is some American agency insuring North Korea's nuclear reactors?