DEPARTMENT OF THE TREASURY

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

2017 REPORT TO CONGRESS

Section 129 of the Foreign Assistance Act of 1961, as amended, authorizes the 

establishment of a Department of the Treasury program to provide technical assistance to 

governments and central banks of developing or transitional countries. This legislation 

also requires Treasury to prepare and submit this report on the conduct of the Treasury 

International Affairs Technical Assistance (TIATA) program by Treasury’s Office of 

Technical Assistance (OTA).
TABLE OF CONTENTS

I. Introduction and Executive Summary 1

II. Program Organization and Principles 2

III. Project Allocation and Funding 3

IV. Project Selection and Assistance Delivery 5

V. Program Evaluation and Monitoring 7

VI. Achievements 9

VII. Special Focus: Infrastructure Finance Technical Assistance 

Goes Local – India Launches Landmark Bond for 

Local Infrastructure 11

Annex 1: U.S. Treasury Strategic Plan 2018-2022 (Strategic Objective 2.3: 

 Foreign Technical Assistance) 14

Annex 2: OTA Strategic Plan 2016-2020 16

Table A - 2017 TIATA Budget Execution Plan 18

Table B - 2017 Non-TIATA Sources of Funding 22
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I. Introduction and Executive Summary

This report provides an overview of the activities of the Treasury Department’s Office of 

Technical Assistance (OTA) for calendar year 2017. The report covers program 

organization, funding, and the process for selecting and implementing projects, describes 

changes in the program’s global footprint, and summarizes project-specific highlights.

For 25 years, OTA has helped finance ministries and central banks of developing and 

transitional countries strengthen their ability to manage public finances effectively and 

safeguard their financial sectors. Such assistance is in the U.S. national interest. Strong 

economic governance regimes support financial sector stability, growth, and the 

achievement of broader U.S. foreign policy and national security goals. Developing 

countries that generate more domestic revenue and manage their resources effectively are 

less dependent on foreign aid. Additionally, governments that develop effective financial 

sector oversight regimes are valuable partners in the global effort to combat money 

laundering and terrorist financing. 

In 2017, OTA supported financial sector strengthening in many regions and countries. 

As discussed in greater detail in section VI, OTA projects in Africa (e.g., Kenya), Asia 

(e.g., Mongolia), Latin America (e.g., Argentina), and the Middle East/North Africa (e.g., 

Tunisia) helped mobilize revenues, deepen domestic bond markets, increase 

infrastructure finance, strengthen budget systems, improve banking supervision, and 

combat economic crimes. 

This report includes a special section (VII) on Treasury’s technical assistance in the area 

of infrastructure finance, with a focus on the program’s engagement in India. In 2017, 

OTA provided assistance to the city of Pune that led to the launch of a landmark $31 

million bond issue. As discussed further in section VII, this engagement, which is one of 

OTA’s few projects with counterparts at both the national and sub-national levels, 

resulted in the raising of critical domestic resources to develop Pune’s municipal water 

supply. OTA foresees growing demand for this type of technical assistance to help 

address the infrastructure deficit in many developing and transitioning countries.

Over the course of 2017, OTA engaged with incoming Treasury leadership about how 

OTA’s work can best support Treasury goals going forward. Treasury’s Strategic Plan 

for 2018-2022 identifies Treasury Foreign Technical Assistance as relevant to the 

strategic goal of supporting financial stability. Under the Strategic Plan, OTA will 

“provide technical assistance to enable foreign partner countries to better raise and 

manage financial resources and protect their financial sectors.” This will entail focusing

on OTA’s five core program disciplines (revenue policy and administration; budget and 

financial accountability; government debt issuance and infrastructure financing; banking 

& financial services; economic crimes) as well as high-priority cross-cutting objectives 

such as domestic resource mobilization, infrastructure finance, expanding access to 

financial services, strengthening anti-money laundering/combating financing of terrorism 

(AML/CFT) frameworks, and supporting growth and rising median real incomes. (See 

Annex 1: U.S. Treasury Strategic Plan 2018-2022.)
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II. Program Organization and Principles 

OTA is organized along functional lines, operating in five major disciplines to assist the 

governments of developing and transition countries:

• Revenue Policy and Administration: Creates more effective tax administrations 

that simplify procedures to encourage voluntary compliance on the part of taxpayers, 

effectively uncover tax evasion, and maintain high standards of fairness and 

transparency.

• Budget and Financial Accountability: Strengthens all phases of the governmental 

budget cycle, including budget formulation, execution, monitoring and reporting, 

Treasury operations, and evaluation.

• Government Debt and Infrastructure Finance: Provides strategic and technical 

assistance to develop market-based means of public finance through the issuance of 

domestic government securities; increases the efficiency of government debt 

management; implements comprehensive debt strategies that diversify sources of 

finance, reduce liability risk and lower debt service burdens; strengthens enabling 

environments for private investment; and accelerates the development of financially 

sound infrastructure projects.

• Banking and Financial Services: Supports the development of strong financial 

sectors in which institutions are well-regulated, stable and accessible, serve as 

efficient intermediaries between savers and investors, and are resistant to criminal 

activity.

• Economic Crimes: Assists the development and implementation of AML-CFT 

financing regimes that are compliant with international standards. 

In providing technical assistance, OTA follows a number of guiding principles:

• OTA supports self-reliance. OTA provides countries with the knowledge and skills 

required to move towards financial self-sufficiency—including the capability to 

generate and better manage their own government finances—and to reduce 

dependence on international aid. OTA generally follows a three- to five-year project 

cycle that is aimed at creating maximum impact and exiting when local capacity has 

been created. 

• OTA is selective. OTA works with governments that are committed to reform—

reform that they design and own—and to using U.S. assistance effectively. Among 

U.S. agencies involved in foreign aid, OTA was singled out for praise in a report 

commissioned by the U.S. Department of State and U.S. Agency for International 

Development (USAID) for supporting country ownership; achieving alignment with 

host country priorities; managing for development results; and fostering mutual 

accountability with host country officials. OTA does not engage with a country 

without a signed bilateral Terms of Reference that sets out the high-level terms and 

aims of the engagement, followed by a tactical-level work plan specifying activities 

in support of those aims.

• OTA works side-by-side with counterparts. OTA engagements are based on close 

interaction between advisors and working-level partners, whether in a finance 

ministry, central bank, financial intelligence unit, tax administration, or other relevant 
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government agency. OTA advisors introduce sound practices in daily work routines 

through ongoing mentoring and on-the-job training.

III. Project Allocation and Funding

As of the end of 2017, OTA had 101 projects in 47 countries. Thirty-five percent of 

OTA’s total projects in 2017 were in the Americas, 26 percent in Asia, 25 percent in SubSaharan Africa, 9 percent in Europe and Eurasia, and 5 percent in the Middle East and 

North Africa (see chart below). The total number of projects and their regional 

distribution are consistent with OTA’s footprint in recent years, with a marginal increase 

in projects in the Americas (e.g., Argentina, Colombia, Guatemala, Mexico) while the 

share of projects in Europe and Eurasia declined as certain long standing engagements in 

that region concluded (e.g., Kosovo). 

While the specific number of projects and countries fluctuates from year to year, OTA 

has focused on providing more in-depth assistance to fewer countries. This selective 

approach recognizes the complex, systemic nature of public financial management and 

the importance of engaging with a counterpart government in various disciplines in a 

coordinated way to achieve more convincing results and a stronger overall system.

Chart 1 - OTA Projects by Region 2017

OTA received total funding of $53.6 million in 2017, including funds directly 

appropriated to the program and transfers from other U.S. agencies. Eighty projects, with 

a combined budget of $41.6 million, were financed either wholly or partly by OTA’s 

direct annual appropriation, formally known as “Treasury International Affairs Technical 

Assistance” or TIATA. TIATA is a multi-year appropriation, which allows OTA to fund 

projects through a combination of new and carryover funds.

As the chart below indicates, TIATA is the single largest resource available to OTA for 

pursuing its mission. In FY 2017, Congress appropriated $30 million in TIATA 

35%

26%

25%

9%

5%

Americas

Asia

Sub-Saharan Africa

Europe/ Eurasia

Middle East/N. Africa
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resources, an increase of $6.5 million, or 28%, over the previous year. This increase 

offset the decline in inter-agency transfers (see below) and enabled the program to initiate 

and expand engagements in priority assistance areas, including AML/CFT, spurring 

domestic resource mobilization, and increasing access to finance.

In addition to TIATA funding, OTA receives resources from other agencies, such as the

U.S. Department of State, United States Agency for International Development, and the 

Millennium Challenge Corporation. Funding transferred to OTA from other agencies in 

2017 totaled $23.6 million, a decline of $6.7 million, or 22%, from the previous year 

(2016), but an increase over recent, prior years (2013, 2014, 2015) and consistent with 

the five-year average of transfer funding received by OTA ($20.7 million). 

Chart 2 - OTA Funding by Source FY 2013-FY 2017

Notes

1. AEECA refers to State Department Assistance for Europe, Eurasia, and Central Asia. AEECA funding includes

multi-year funding for certain projects.

2. FY13 TIATA figure includes $1.473 million Overseas Contingency Operations (OCO) funding. Both TIATA and 

OCO amounts were subject to sequester.

3. TIATA amounts shown are annual appropriation levels. The sum of project allocations may be higher than annual 

appropriation amounts due to a combination of carryover funds and/or transfer funding from other agencies.

4. Details may not add to totals due to rounding.

$1.6 $1.9 $2.2

$9.7 $6.8

$25.6 $23.5 $23.5

$23.5 $30.0

$12.0 $12.2

$19.7

$20.6 $16.8

0

10

20

30

40

50

60

70

FY13 Actual FY14 Actual FY15 Actual FY16 Actual FY17 Actual

Department of Treasury

Office of Technical Assistance

Funding FY13 - FY17

($ in millions)

AEECA TIATA Other Transfers (e.g., State, USAID, MCC)

$37.7 $39.3

$45.4

$53.8 $53.6
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Tables A and B at the end of this report provide additional data regarding the allocation 

of OTA funding sources in 2017, including funds received as transfers.

Program Management

Program management is the set of management and administrative activities – and related 

costs – that are required to effectively develop, deliver, and oversee technical assistance 

to partner countries globally. These costs, which are largely associated with OTA’s 

headquarters management and administrative functions, include compensation for 

program office management and staff; headquarters office facility and maintenance, 

utilities, and other services (e.g., computer, telephone and internet, supplies); 

procurement and financial management services; and office and information systems 

security. These program management expenses are funded by twenty percent (20%) of 

all funds the program receives, whether via direct appropriation (TIATA) or inter-agency 

transfer.

IV. Project Selection and Assistance Delivery 

Two of the most frequently asked questions about OTA’s work are: “How are projects 

selected?” and “How is assistance delivered?” As described further below, project 

selection is a process that typically begins with a request for Treasury technical assistance 

and is informed by a careful assessment of a project’s potential for impact and success. 

Assistance is delivered via a resident or intermittent advisor-based project model, or a 

combination of both. Project documentation – in particular agreed Terms of Reference 

and progress reports – is a vital part of the assistance architecture. 

Receiving and Assessing Requests. Requests for technical assistance and information 

regarding potential projects come from many sources, including U.S. embassies, USAID 

missions, other Treasury offices, foreign governments, and international organizations 

such as the IMF, as well as from OTA advisors already on the ground implementing other 

projects. 

For promising requests that are determined to be within the OTA mandate, an on-theground assessment is carried out by OTA subject matter experts. Assessment 

conclusions are shared with the partner government and the U.S. embassy in the host 

country. OTA looks to its host-country counterparts to define project goals from the 

outset. Experience shows that goals and objectives that are not “owned” by the 

counterpart are seldom achieved. 

A project proposal based on the assessment is submitted by the manager of one of OTA’s 

five core disciplines to the OTA Director and Deputy Assistant Secretary for Technical 

Assistance Policy. Decisions to begin new projects or continue (or terminate) existing 

projects, are based on criteria and considerations that include: the need for technical 

assistance; evidence of counterpart commitment to reform and good use of assistance; 

whether the project would complement other projects in a particular country or region; 
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the relation of the project to Treasury’s policy priorities and broader U.S. Government 

goals; and the availability of funding. In the course of assessing the prospects for a given 

project, OTA consults with other Treasury offices, and other partners and stakeholders 

such as the U.S. Department of State and USAID (in the field, at the embassy level and at 

the headquarters level in Washington), the IMF, and the World Bank. 

Assistance Delivery Models. OTA carries out technical assistance through two basic 

delivery models: a resident advisor-based project and an intermittent advisor-based 

project. A resident advisor-based project is anchored by an expert advisor living in the 

counterpart country, typically for a period of several years, and working side-by-side with 

officials in the ministry of finance, central bank, tax administration authority or other 

government institution. Treasury has found that working directly with the counterpart 

over a sustained period of time is critical for transferring knowledge and strengthening 

systems, especially in countries where government capacity is very limited. In addition 

to a resident advisor, a resident project frequently includes the participation of 

intermittent OTA experts in specialized areas who make short-term visits. 

For an intermittent advisor-based project, a group of several advisors typically spends a 

total of 30 to 45 weeks per year over several years, in periods of two to three weeks at a 

time, working with host-country counterparts. Between these multi-week direct 

engagements, the counterparts are expected to carry out planned activities that are 

directed toward the objectives stated in a mutually-agreed-upon work plan. Between 

trips, advisors and counterparts are in frequent contact by email and phone. OTA often 

hires a permanent, full-time program assistant in-country to support the intermittent 

project.

Whether a resident or intermittent advisor-based project model is selected depends on the 

extent and nature of the problems to be solved, and the most practical solutions to those 

problems. Typically one resident advisor will be utilized to cover a single large subject 

area, such as program budgeting or debt management, that will require several years to 

complete. An intermittent advisor-based project will use several advisors to cover a 

multitude of specialized assistance topics, such as audits, arrears collection and strategic 

planning in tax administration, or financial intelligence unit development, techniques of 

financial analysis, investigation and prosecution, or asset management, seizure and 

forfeiture. 

Project Documents. Once a resident or intermittent project is selected for funding, Terms 

of Reference (TOR) are worked out with the counterpart agency and signed. The TOR 

describe the broad goals of the project and represent a bilateral understanding at the 

policy level between OTA and the host institution. Within a short period (normally six to 

eight weeks) after signing the TOR, a detailed work plan is agreed upon between the 

advisor assigned to the project and the working-level counterpart. This plan specifies 

objectives, planned completion dates and deliverables, and is the primary basis for 

regular monthly progress reports to Treasury headquarters. 
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The monthly reports are shared with counterpart institutions, U.S. embassy staff, other 

bureaus and offices in Treasury, and other interested partners such as USAID, the 

Millennium Challenge Corporation, and the relevant International Financial Institutions. 

The reports are used as a management tool to oversee the progress of the project and to 

make any necessary changes. The reports also form the information base for responses to 

project queries from U.S. Government officials. In addition, supervising officials 

conduct field visits to meet counterparts and advisors and review the project’s progress. 

Such visits and reviews are conducted, generally, on an annual basis. 

V. Program Evaluation and Monitoring

One of the most important managerial functions in any assistance program is to monitor 

and evaluate individual projects and the overall program. OTA evaluates projects using a 

variety of methods, including on-site evaluations by OTA managers, written monthly 

reports prepared by advisors that describe progress on work plan objectives, and end-ofproject reports which provide a final assessment of project outcomes. End-of-project 

reports are undertaken by an OTA expert other than the project implementer, and are 

conducted typically within three to six months following the end of the project. The 

purpose is to better understand the program’s longer-term impact. OTA completed five

end-of-project reports in 2017.

OTA also utilizes a formal project evaluation to measure project performance. The 

evaluation focuses on the level of “traction” (the degree to which changes in behavior 

occur—e.g., officials take an active and participative role in pursuing change, interim 

deliverables are on or ahead of schedule), and “impact” (the extent to which the 

objectives are actually achieved) for each technical assistance project. The level of 

traction and impact is measured by OTA advisors and headquarters staff according to 

specific indicators that are relevant to each of the five OTA financial disciplines. For 

example, revenue team indicators include adoption of modern functional processes and 

procedures, and adequacy of investigation and adjudication of internal conduct matters by 

the tax agency. The outcome of the evaluation process informs OTA’s understanding of

the effectiveness of program engagements, and may include steps either to improve 

traction and impact, or, in cases where traction and impact are lacking, to terminate 

projects. The setting of annual baseline targets and measuring results against those 

targets are done in accordance with Office of Management and Budget guidance on 

program evaluations.

For 2017, the baseline targets for OTA’s traction and impact were set using a 5-point 

scale (with 5 representing the highest possible traction and impact), at 3.6 and 3.1, 

respectively. OTA exceeded performance goals for both traction and impact in 2017 with 

actual scores of 4.0 and 3.2, respectively. (See rating scale below for additional 

explanation of the meaning of these scores.) 
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In addition to the traction and impact evaluation, OTA surveys country counterparts 

(policy and working-level counterparts in the host country) who have worked first-hand 

with OTA advisors. The survey is valuable as it provides direct feedback from those 

directly impacted by the program who have an interest in receiving high quality technical 

assistance, and who in many cases have a basis for comparing OTA assistance with that 

of other providers. In 2017, OTA received 53 survey responses covering projects in 26

countries. The results indicate that, within the respondent countries, project objectives 

are being met and assistance is making an important contribution to strengthening 

institutional capacity.

OTA Traction and Impact Evaluation Rating Scale

Traction

5 – Advisors have regular and frequent meetings with counterparts. Counterparts display high levels 

of involvement. There is an excellent professional relationship between the advisor and the 

counterpart. Schedules are kept. Counterparts take the initiative to advance the project work. There is 

a great deal of energy and activity devoted to this objective. 

3 – While there is interaction and involvement in working on this objective, more focus and activity 

would be desirable and is probably possible. For good and valid reasons the specific project 

objective does not have a high priority for the counterparts at the present time, but some important 

and worthwhile efforts are being made. The project is doing well but could do better on this 

objective.

1 – There is little if any involvement or activity generated around this objective. It may be that the 

objective has been delayed, suspended, or otherwise given low priority. Though this may change in 

the future, for the time period covered by this evaluation this objective is dormant. 

Impact

5 - This objective has been completed and/or is having a noticeable and positive effect. The work 

being accomplished makes a difference that all involved in the project recognize and value. The 

project is making substantive and substantial differences that can be verified by any observer who 

understands the technical nature of this work.

3 - Though the effects of this objective are unmistakable and positive, the objective was designed to 

achieve more than has been done to date.

1- There has been little if any substantive achievement or change as a result of work on this 

objective. It may be because little work has been done to date; because what has been done has been 

inadequate; or because what was done failed. 

Use the numbers 4 and 2 to indicate levels of Traction and Impact between 5 and 3, or 3 and 1, if that 

best reflects the professional assessment of the evaluator.
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VI. Achievements

As described in the previous section, the results of Treasury technical assistance are 

measured on a project-by-project basis and range from engagements that meet or in some 

cases exceed project objectives, to those that underperform, or result in little or no 

improvement. On the latter, projects can fall short of expectations for a variety of 

reasons – limited absorption capacity by recipients, a change in host-country leadership, 

difficulty in establishing a good working relationship between the advisor and his/her 

counterpart, a lack of commitment to reform, or reform fatigue. OTA conducts quarterly 

reviews of project progress. For projects with less than satisfactory progress, OTA may 

curtail or end the projects earlier than expected. On average, OTA curtails or ends early 

4-5 projects – roughly 6% of TIATA-funded projects – per year.

By contrast, OTA projects are successful when the foreign counterparts – at both the 

technical and policy level – are committed to reform and to using Treasury technical 

assistance well. In 2017, several OTA partner countries demonstrated such commitment 

and made significant achievements with OTA assistance. Notable accomplishments 

include the following:

Banking and Financial Services

Tunisia Enhances Financial Stability. Financial reforms resulted in legislated Central 

Bank independence and created a cross governmental Macroprudential Committee to 

evaluate emerging threats to financial stability. OTA assisted counterparts at the Central 

Bank in identifying macro- and microeconomic risks as well as developing reporting and 

trend analysis. Leading economic indicators were risk ranked and aligned with “early 

warning” indicators and potential instruments to inform Central Bank economic 

intervention strategies. The proposed stress test model methodology utilizes jointly 

derived stress variables to evaluate potential weaknesses and impending liquidity 

constraints on the entire financial sector.

Revenue Policy and Administration

Mongolia Strengthens Critical Tax Administration Functions. With OTA support the 

Mongolia General Department of Taxation developed a Key Client Managers program to 

delineate taxpayer services by market segment and create consistent informational 

services and products across districts. Feedback from businesses participating in program 

indicate that the program is effective and well-received, and taxpayers report that the 

redesign of the tax administration website allows them to find information more 

easily. Alongside improvements to the access and quality of information available, the 

department streamlined returns processing procedures, resulting in an average 75 percent 

increase in automatic acceptance of tax returns. The tax department has reduced 

registration timelines, in part due to increased cooperation with relevant government 

agencies.
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Zambia Improves Collection of Arrears. The Zambia Revenue Authority reorganized 

its debt management system and instituted new procedures that resulted in significant 

revenue gains. OTA advised the Zambia Revenue Authority on optimal staffing levels 

and managerial controls and helped to document key procedures, including quality 

standards. As a result of these administrative reforms, 2,258 arrears cases were closed in 

2017 compared to 73 the prior year, with revenue from enforcement actions rising to 

$410 million from $97 million the previous year, a more than 300% increase.

Budget and Financial Accountability

Uganda Increases Budget Credibility and Transparency. With support from OTA, 

the Ministry of Finance, Planning, and Economic Development (MoFPED) strengthened 

linkages between national policies and priorities and the budget and addressed budget 

credibility issues identified in a 2016-2017 Public Expenditure Financial Accountability 

(PEFA) assessment report. As part of this multi-year effort, under which the Ministry is 

leading the transition from output-oriented budgeting to a more results-focused, programbased budgeting (PBB), OTA assisted the MoFPED in training more than 280 

government leaders, executives, and staff across the government on the concept and 

benefits of moving to a performance-based budgeting system. This effort led to the 

successful implementation of PBB for 140 budget entities at the central government level 

in 2017-2018, allowing the government to shift from an output-focused environment to a 

policy oriented environment that is based on performance outcomes and results.

Madagascar Improves Budget Execution. The Ministry of Finance and Budget, with 

OTA support, made important progress to strengthen execution of the national budget, 

including by streamlining the annual process for certifying “Authorizing Officers”. 

Under the new system, which was incorporated into the budget execution circular for 

2018, all authorized budget officers can start executing budget commitments on the first 

day of the budget year. Previously, officers had to wait as long as three months following 

the start of the fiscal year in order to start the critical budget processes that deliver 

services to the people of Madagascar. In addition, OTA is supporting the Ministry’s 

efforts to allow more dynamic risk controls aimed at permitting an increased volume of 

routine, small value transactions be executed with post expenditure audit rather than the 

traditional (and lengthy) process of pre-audit.

Government Debt and Infrastructure Finance

Kenya Issues First-ever Government Bond through Mobile Money Platform. With 

OTA assistance, Kenya’s National Treasury sold $11.5 million in small-denomination MAkiba (“mobile savings” in Swahili) retail government bonds to domestic savers in a

pilot and follow-on issue. Sold in transactions equivalent to $30-$140, M-Akiba were

placed in more than 300,000 new retail accounts. As a point of comparison, over the 

previous ten years the Central Bank of Kenya opened 10,000 retail bond accounts. This 

innovative product has increased financial inclusion for a greater percentage of Kenya’s 

population, including by promoting domestic savings in an environment where fewer 

than 20% of the population saves in traditional bank and cooperative instruments. A 
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particularly noteworthy aspect of this effort is the potential to break down structures and 

practices that inhibit retail investment in government securities by providing investors a 

safe, easily accessed instrument in affordable denominations. 

Economic Crimes 

Peru Reorganizes Asset Forfeiture Regime to Target Criminal Assets. As part of a 

multi-year effort to improve its asset forfeiture regime, in 2017 with OTA assistance the 

newly created National Asset Management Program (PRONABI) under the Ministry of 

Justice set up its organizational structure, developed operational protocols, and issued 

improved regulations with the goal of enhancing public safety and security by removing 

the proceeds of crime and other assets relied upon by criminals and their associates. 

OTA helped PRONABI to cultivate more effective working relationships with critical 

Peruvian stakeholders including prosecutors, police, and the judiciary. These efforts led 

to a number of positive outcomes, including better coordinated seizure operations, greater 

transparency with respect to the management of seized and forfeited assets, and more 

productive asset disposal practices. For example, PRONABI successfully completed a 

public auction of seized and forfeited assets in October 2017 that added $3.5 million to 

the government’s forfeiture fund.

Argentina Improves Anti-Money Laundering Analysis. Argentina’s financial 

intelligence unit (FIU) incorporated OTA recommendations, as well as technical 

guidance from U.S. supervisory counterparts facilitated by OTA, into the issuance of 

new, comprehensive AML/CFT regulations for the Argentine financial sector. Under the 

strengthened regulations, banks, exchange houses, and money remitters will be obligated 

to conduct risk assessments, to rate clients on the basis of risk, and to implement controls 

to minimize these risks. Analysts at the unit have also successfully applied OTA 

guidance in developing stronger analytic products, such as incorporating open source 

databases to gather intelligence on corporate entities and real estate holdings in the 

United States. FIU attorneys also utilized OTA training on the use of a U.S. federal court 

database to locate information beneficial to Argentine prosecutions. 

VII. Special Focus: Infrastructure Finance Technical Assistance Goes Local – India 

Launches Landmark Bond for Local Infrastructure

To help address the infrastructure deficit and enhance economic growth in many 

developing and transitioning nations, OTA provides technical assistance focused on 

strengthening the capacity of governments to structure and implement infrastructure 

projects. Under this initiative, which OTA launched in 2009, the program engages with 

foreign governments to provide technical advice to accelerate the development and 

implementation of well-designed and fiscally sound infrastructure projects. These 

projects may be structured as direct public procurement or incorporate the public-privatepartnership (PPP) model. OTA currently executes 12 infrastructure finance projects 

globally, with engagements in the Americas (Argentina, Colombia, Paraguay, Peru), Asia 
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(India, Indonesia, Mongolia, Philippines), Sub-Saharan Africa (Uganda), and 

Europe/Eurasia (Ukraine).

While OTA’s efforts have focused on helping finance ministries, procurement agencies, 

and related offices at the national (sovereign) level, in 2016, at the request of the 

Government of India, OTA began an engagement with the Indian city of Pune that 

resulted in a landmark June 2017 $31 million bond issue. The issuance was the first in a 

series of bonds that are expected to total $350 million, the largest municipal bond 

authorization in India’s history, and points the way for local governments in India to tap 

capital markets – not foreign aid – to fund critical infrastructure. Proceeds of the current 

issuance will be used to develop Pune’s water supply, which is currently available for 

four to six hours per day. The upgrade will allow for 24/7 availability along with new 

water towers, pipe replacement, user metering, and an electronic management system. 

Background

OTA commenced a technical advisory engagement with Pune in mid-2016 at the request 

of the Government of India’s Ministry of Finance and Ministry of Urban Development 

(MoUD), providing technical advice and capacity development on all aspects of the 

municipal issuance preparatory process. OTA guided the Pune staff in conducting a debt 

capacity analysis, drafting and implementing an appropriate debt management policy, 

ensuring the requisite three years of audited financial statements, securing bond ratings, 

and hiring legal counsel and underwriters. The most important tasks were to help the 

municipal officials to better understand how the bond market works, how investors think, 

and how to deal with disclosure requirements. OTA helped Pune officials through a

process of changing their financial reporting practices, including making the switch from 

unaudited to audited accounts, and created a template to calculate debt capacity analysis 

(for the first time), an investor grievance policy, and a template to report on the 

construction progress being financed by the bonds. 

The next challenge was for the municipality to follow through on the ongoing financial 

disclosure requirements. The issuance marked the first municipal bond in India in 10 

years, and the first under India’s securities regulatory agency’s revised municipal bond 

guidelines. According to the Reserve Bank of India, there have been 12 municipal bond 

issues, with most occurring from the late 1990s to 2005, and the last being completed in 

2011. Pune’s initial issuance was six times oversubscribed, and at 7.59%, came in 50-60 

basis points (hundredths of a percentage point) lower than expected and just 100 basis 

points over comparable securities issued by the central government. Similar to other 

municipal bonds in India and elsewhere, revenue streams are held in escrow in order to 

secure payment on the bonds.

In Pune’s case, the revenue streams include both property taxes and water usage fees. As 

the water system improvements are funded and more meters are installed, the proportion 

of water fees in escrow will increase and property taxes will decrease. To this established 

way of securing revenues, with OTA assistance Pune added a few innovations. The first 

was creating a single legal agreement covering the series of bond issues that will come to 
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market over a period of years, so that each bond has pari-passu (equal footing) security 

with the other issues. The second was creating an additional bonds test that prevents the 

municipality from incurring more debt than it can afford. The third innovation involved 

creating a rolling coverage of debt service by the pledged revenue stream, which allows 

for any excess coverage to flow back to the municipality after the debt service payments 

are made. 

Going Forward

Looking ahead, Indian authorities have asked OTA to determine if other major 

municipalities could follow Pune’s footsteps. At MoUD’s request, OTA has agreed to 

provide experts to speak at a conference with municipal leaders from across India to build 

capacity on the fundamental requirements in preparation for issuing municipal bonds, 

including revenue enhancement and debt capacity analysis. MoUD has also shortlisted 

eight cities including Jaipur, Ahmedabad, Kakinada, and Indore as candidates for 

possible consideration of future OTA technical support on municipal bond issuance.
14

Annex 1: U.S. Treasury Strategic Plan 2018-2022 (Strategic Objective 2.3: Foreign 

 Technical Assistance)
15
16

Annex 2: OTA Strategic Plan 2016-2020

STRATEGIC PLAN 2016-2020

U.S. DEPARTMENT OF THE TREASURY

OFFICE OF TECHNICAL ASSISTANCE

Mission. The mission of the Treasury Department’s technical assistance program, 

managed by the Office of Technical Assistance (OTA), is to support the development of 

strong financial sectors and sound public financial management in countries where 

assistance is needed and there is a strong commitment to reform. 

OTA pursues this mission in support of the Treasury Department’s overall mission “to 

promote the conditions for prosperity and stability in the United States and encourage 

prosperity and stability in the rest of the world” as well as broader U.S. Government 

international objectives, such as increasing transparency and accountability, reducing 

corruption, and strengthening the development of market-based policies and practices.

Vision. OTA aims to build upon its reputation as a high-quality provider of financial 

sector technical assistance and policy advice. It aims to be recognized as the provider of 

choice wherever its multi-disciplinary assistance model best addresses country needs and 

U.S. Government objectives. 

The foundation of OTA’s program will continue to reside in five core disciplines—

Revenue Administration and Policy, Budget and Financial Accountability, Government 

Debt and Infrastructure Finance, Banking and Financial Services, and Economic Crimes, 

complemented by the ability to support other aspects of financial sector strengthening.

Values 

• OTA will continue to place the highest priority on capacity building and 

developing country self-sufficiency.

• OTA exits countries when project objectives are accomplished or if country 

commitment to reform is not sustained.

• OTA program engagements are distinguished by flexibility, selectivity and 

responsiveness.

• OTA recognizes that its core strength lies in the dedication, adaptability and 

expertise of its advisors. 

Programmatic Goals

• Encourage depth of engagement and an integrated, multi-discipline approach. 

Where circumstances warrant, deeper, stronger, more comprehensive 

engagements may improve the prospects for material impact. 

• Encourage an approach that targets geographic regions and common financial or 

economic problems. Look for opportunities to place advisors in countries with 

common needs by virtue of location, financial structure (e.g., significant 

dependence upon donor revenue), or dislocations (e.g., highly affected by 

extractive industry income). 
17

• Provide specialized multi-discipline programs and rapid response teams to 

support key U.S. Government priorities.

• Recruit, retain and support a cadre of advisors that manifests OTA’s tradition of 

excellence. 

• Continue to strengthen OTA coordination within Treasury and with other parts of 

the U.S. Government. 

• Enhance awareness of Treasury’s technical assistance program.

• Ensure that OTA’s management systems fully support the achievement of OTA’s 

mission. 
18

Table A

2017 TIATA Budget Execution Plan

Projects Funded by FY 2017 Treasury International Affairs Technical Assistance (TIATA) Appropriation

LATIN AMERICA AND CARIBBEAN Team Advisor Category Co-Financing TIATA Total 

1 Argentina CRME Resident $ - $ 642,911 $ 642,911

2 Argentina DEBT Intermittent $ - $ 84,638 $ 84,638

3 Belize CRME Intermittent $ 407,141 $ 67,441 $ 474,582

4 Colombia (Infrastructure Finance) DEBT Intermittent $ - $ 169,467 $ 169,467

5 Colombia (Infrastructure Finance) 02 DEBT Resident $ - $ 694,799 $ 694,799

6 Dominican Republic RVNU Project Coordinator + Intermittents $ - $ 543,282 $ 543,282

7 Dominican Republic 02 BDGT Resident $ - $ 276,316 $ 276,316

8 ECCB-Saint Kitts CRME Intermittent $ - $ 124,798 $ 124,798

9 El Salvador BDGT Resident $ - $ 910,629 $ 910,629

10 Guyana RVNU Project Coordinator + Intermittents $ 171,369 $ 358,328 $ 529,697

11 Honduras DEBT Resident $ - $ 746,762 $ 746,762

12 Honduras RVNU Intermittent $ - $ 105,138 $ 105,138

13 Jamaica (Financial Inclusion) BANK Intermittent $ - $ 189,195 $ 189,195

14 Jamaica BDGT Resident $ - $ 778,817 $ 778,817

15 Panama BDGT Resident $ - $ 506,752 $ 506,752

16 Paraguay BDGT Resident $ - $ 650,072 $ 650,072

17 Paraguay CRME Resident $ - $ 620,965 $ 620,965

18 Paraguay RVNU Project Coordinator + Intermittents $ - $ 545,808 $ 545,808

19 Paraguay DEBT Resident $ - $ 549,670 $ 549,670

20 Paraguay (Infrastructure Finance) DEBT Resident $ - $ 538,153 $ 538,153

21 Peru (Financial Inclusion) BANK Resident $ - $ 573,327 $ 573,327

22 Peru CRME Intermittent $ 204,491 $ 370,074 $ 574,565

23 Peru (Infrastructure Finance) DEBT Intermittent $ - $ 400,670 $ 400,670

24 Saint Vincent and the Grenadines CRME Intermittent $ 11,310 $ 146,228 $ 157,538

25 Trinidad and Tobago CRME Intermittent $ 142,193 $ 43,788 $ 185,981

Subtotal Latin America and Caribbean $ 936,504 $ 10,638,028 $ 11,574,532
19

ASIA Team Advisor Category Co-Financing TIATA Total 

26 Burma CRME Intermittent $ - $ 431,949 $ 431,949

27 Burma RVNU Resident $ - $ 1,399,039 $ 1,399,039

28 Burma 01 BDGT Intermittent $ 163,657 $ 75,000 $ 238,657

29 Burma 02 BDGT Intermittent $ 460,800 $ 165,929 $ 626,729

30 Cambodia BANK Resident + Intermittent $ - $ 893,470 $ 893,470

31 India DEBT Intermittent $ - $ 36,997 $ 36,997

32 India 02 DEBT Intermittent $ - $ 513,097 $ 513,097

33 Indonesia BDGT Intermittent $ - $ 856,521 $ 856,521

34 Indonesia (Infrastructure Finance) DEBT Resident $ - $ 730,972 $ 730,972

35 Mongolia BDGT Resident $ 53,183 $ 553,503 $ 606,686

36 Mongolia CRME Intermittent $ - $ 67,574 $ 67,574

37 Mongolia DEBT Resident $ - $ 498,948 $ 498,948

38 Mongolia RVNU Project Coordinator + Intermittents $ - $ 379,010 $ 379,010

39 Philippines DEBT Resident $ - $ 567,783 $ 567,783

40 Philippines BANK Resident $ - $ 454,297 $ 454,297

41 Philippines (Infrastructure Finance) DEBT Resident $ - $ 686,932 $ 686,932

42 Southeast Asia (Infrastructure Finance) DEBT Resident $ - $ 510,292 $ 510,292

43 Sri Lanka CRME Resident + Intermittent $ - $ 873,167 $ 873,167

44 Sri Lanka DEBT Resident $ 1,360,000 $ 172,594 $ 1,532,594

45 Vietnam BDGT Resident $ - $ 372,157 $ 372,157

Subtotal Asia $ 2,037,640 $ 10,239,231 $ 12,276,871
20

SUB-SAHARAN AFRICA Team Advisor Category Co-Financing TIATA Total 

46 Ghana 02 (Financial Inclusion) BANK Intermittent $ - $ 79,973 $ 79,973

47 Guinea-Bissau RVNU Intermittent $ - $ 473,539 $ 473,539

48 Kenya BANK Resident $ - $ 644,260 $ 644,260

49 Kenya DEBT Resident $ - $ 664,877 $ 664,877

50 Liberia CRME Intermittent $ - $ 377,304 $ 377,304

51 Madagascar BDGT Resident $ 291,818 $ 193,813 $ 485,631

52 Madagascar (Financial Inclusion) BANK Resident + Intermittent $ 67,458 $ 999,292 $ 1,066,750

53 Malawi 01 BDGT Resident $ 472,829 $ 693,923 $ 1,166,752

54 Namibia DEBT Resident $ - $ 150,079 $ 150,079

55 Niger RVNU Project Coordinator + Intermittents $ - $ 749,752 $ 749,752

56 Rwanda RVNU Project Coordinator + Intermittents $ - $ 499,825 $ 499,825

57 Rwanda DEBT Resident $ - $ 641,509 $ 641,509

58 Sierra Leone (Financial Inclusion) BANK Resident + Intermittent $ - $ 903,857 $ 903,857

59 Sierra Leone CRME Intermittent $ - $ 51,854 $ 51,854

60 Tanzania RVNU Project Coordinator + Intermittents $ 147,970 $ 468,100 $ 616,070

61 Tanzania (Infrastructure Finance) DEBT Close-Out $ - $ 173,194 $ 173,194

62 Uganda BDGT Resident $ - $ 676,140 $ 676,140

63 Uganda DEBT Close-Out $ - $ 744 $ 744

64 Uganda IFT DEBT Intermittent $ - $ 176,701 $ 176,701

65 WAEMU Regional Securities Agency DEBT Resident $ - $ 728,149 $ 728,149

66 Zambia RVNU Project Coordinator + Intermittents $ - $ 627,130 $ 627,130

Subtotal Sub-Saharan Africa $ 980,075 $ 9,974,015 $ 10,954,090
21

Notes

1. TIATA figures include carryover of prior year TIATA funds.

2. Figures include program management (20% of total).

3. OTA Team abbreviations: BDGT = Budget and Financial Accountability; CRME = Economic Crimes; BANK = Banking and Financial Services; DEBT = Government Debt 

and Infrastructure Finance; RVNU = Revenue Administration and Policy.

4. Co-funding amounts may reflect funds intended for more than one year.

SENIOR ADVISORS

67 Senior Advisor (AFR/EUR) BANK $ - $ 436,593 $ 436,593

68 Senior Advisor (LAC/MENA) BANK $ - $ 53,235 $ 53,235

69 Senior Advisor (Financial Inclusion) BANK $ - $ 436,156 $ 436,156

70 Senior Advisor BDGT $ - $ 415,981 $ 415,981

71 Senior Advisor I CRME $ - $ 463,122 $ 463,122

72 Senior Advisor II CRME $ - $ 464,238 $ 464,238

73 Senior Advisor DEBT $ - $ 420,768 $ 420,768

74 Senior Advisor (Infrastructure Finance) DEBT $ - $ 479,349 $ 479,349

75 Senior Advisor RVNU $ - $ 706,265 $ 706,265

Subtotal Senior Advisors $ - $ 3,875,707 $ 3,875,707

OTHER FUNDED ACTIVITIES Team Advisor Category Co-Financing TIATA Total 

76 Cash Management BDGT Full-time TDY $ - $ 432,816 $ 432,816

77 Deposit Insurance BANK Intermittent $ - $ 928,732 $ 928,732

78 Global Financial Inclusion BANK Full-time TDY $ - $ 847,912 $ 847,912

79 Global Financial Stability BANK Full-time TDY $ - $ 369,709 $ 369,709

80 Global International Tax CRME Intermittent $ - $ 374,625 $ 374,625

Subtotal Other Funded Activities $ - $ 2,953,794 $ 2,953,794

GRAND TOTAL $ 3,954,219 $ 37,680,775 $ 41,634,994
22

Table B

2017 Non-TIATA Sources of Funding 

Treasury International Affairs Technical Assistance (TIATA)

Transfer 

Purpose Source Category Amount

Assistance for Europe, Eurasia and Central Asia State 632(b) $6,784,032

Technical Assistance for the Northern Triangle region State/USAID 632(b) $4,475,676

Technical Assistance in collaboration with PEPFAR State PEPFAR 632(b) $4,000,000

Technical Assistance to Government of Sri Lanka State 632(b) $3,560,000

Technical Assistance to the Government of Algeria State 632(b) $1,400,000

Technical Assistance to the Government of Tunisia State 632(b) $1,000,000

Technical Assistance to Government of Iraq State 632(b) $655,724

Technical Assistance to Government of Burma State 632(b) $576,000

Technical Assistance to Government of Belize State 632(b) $508,926

Technical Assistance for Energy Governance and Capacity Building State 632(b) $300,000

Technical Assistance to Government of Cambodia USAID 632(b) $216,000

Technical Assistance to for Domestic Resource Mobilization USAID 632(b) $100,000

TOTAL $23,576,358