Report of the 

OVERSEAS PRIVATE INVESTMENT CORPORATION 

ANNUAL REPORT 

 ON DEVELOPMENT IMPACT 

FISCAL YEAR 2015 

Submitted Pursuant to 

Section 240A of the 

Foreign Assistance Act of 1961, 

As Amended

September 2016 
OVERSEAS PRIVATE INVESTMENT CORPORATION 

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Annual Report on Development Impact 

Fiscal Year 2015 

TABLE OF CONTENTS

TABLE OF CONTENTS ..................................................................................................................... 1

EXECUTIVE SUMMARY ................................................................................................................... 2

SUSTAINABLE DEVELOPMENT GOALS ........................................................................................... 4

DEVELOPMENT IMPACTS ............................................................................................................... 6

FISCAL YEAR OVERVIEW ............................................................................................................... 7

ENVIRONMENTAL, HEALTH, SAFETY & SOCIAL IMPACTS ......................................................... 10

Project Screening and Assessment................................................................................................ 10

Mitigating Climate Change ........................................................................................................... 12

LABOR AND HUMAN RIGHTS ........................................................................................................ 14

Country Eligibility ........................................................................................................................ 14

Project Screening and Assessment................................................................................................ 14

Human Rights ............................................................................................................................... 15

SUPPORT FOR THE U.S. ECONOMY .............................................................................................. 16

MONITORING OF ACTIVE PROJECTS ........................................................................................... 18

Compliance with OPIC Conditions and Covenants ...................................................................... 21

EXHIBITS – METHODOLOGIES, PROJECTIONS AND OTHER DATA ............................................... 22

Exhibit 1: U.S. Employment and Associated Effects ................................................................... 23

Exhibit 2: Destination of Sales to Third Party1 Markets............................................................... 24

Exhibit 2 (cont.): Destination of Sales to Third Party1 Markets ................................................... 25

Exhibit 3: U.S. Employment Effects and Host Country Location ................................................ 26

Exhibit 4: Methodology for Calculating U.S. Employment Effects ............................................. 27

Exhibit 5: OPIC’s Development Matrix ....................................................................................... 28

Exhibit 6: OPIC’s Greenhouse Gas Policy and Current Inventory .............................................. 29

Exhibit 7: OPIC Site-Monitoring Methodology ........................................................................... 33

Exhibit 8: Projects Site-Monitored for Development Impact in FY15 ......................................... 34

Exhibit 9: Projects Monitored for Environmental and Social Compliance in FY15 .................... 35

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Annual Report on Development Impact 

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Support for the U.S. Economy 

In addition to the significant positive benefits of OPIC-supported investment in emerging and developing economies, 

OPIC also has a positive impact on the U.S. economy. The projects OPIC backed in FY15 are expected to support 

over 400 U.S. jobs over the next five years through the procurement of an estimated $264 million in goods and services 

from the United States. This includes an expected $144 million in procurement of goods and services from U.S. small 

businesses located in 13 states and the District of Columbia. Furthermore, U.S. small businesses were partners in 75% 

of new OPIC-supported projects in FY15.

Environment, Social, Labor, and Human Rights Impact 

OPIC-supported projects must meet international best practices for environmental and social sustainability, treatment 

of workers, and respect for human rights. OPIC reviews each project to identify and mitigate potential adverse impacts. 

Seven of the 100 new projects that OPIC committed to support in FY15 were considered “Category A” due to 

heightened environmental and/or social risks. Two of the 100 projects were designated “Special Consideration” given 

their potential for heightened labor rights risks. Projects with either of these classifications require additional due 

diligence, mitigation measures, and monitoring. 

OPIC is also committed to increasing the environmental benefits of its portfolio. OPIC tracks the direct greenhouse 

gas (GHG) emissions from active projects in its portfolio. Since FY08, the aggregate direct GHG emissions associated 

with projects in OPIC’s active portfolio decreased by almost 85%. 

Initiatives 

OPIC is undertaking a number of initiatives to enhance its assessment of development impact and improve its 

monitoring and reporting. These include: 

 Adoption of harmonized development impact indicators: OPIC has incorporated the standardized 

development impact indicators agreed upon by 25 international finance institutions (IFIs) in its information 

systems and client forms. Adoption of the standardized indicators by multiple IFIs will reduce reporting 

burdens on clients and promote best practices in development impact assessment. 

 Improved reporting: OPIC revised its client reporting forms to make them more client friendly, improve 

response rates, and enhance data quality. The reporting improvements utilize feedback from stakeholders and 

incorporate results of the indicator harmonization effort. 

 Improving access and transparency: OPIC is investing in the development of its data infrastructure to 

improve the accessibility of development impact data both within the agency and for external stakeholders. 
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Annual Report on Development Impact 

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SUSTAINABLE DEVELOPMENT GOALS

At the July 2015 United Nations meeting in Addis Ababa, more than 190 world leaders committed to the Addis Ababa 

Action Agenda on financing for development. Together, with the global agreement in September 2015 on the 

Sustainable Development Goals (SDGs), Agenda 2030 is focused on eradicating poverty, fighting inequality and 

injustice, and tackling climate change by 2030. The Addis Ababa Action Agenda provides a policy framework for 

development financing in support of sustainable development and a roadmap to help countries identify, attract, and 

access diverse sources of development finance. World leaders emphasized the critical role of both private and public 

investment, as well as domestic resource mobilization, to meet the SDGs. DFIs, such as OPIC, 

play a critical role in catalyzing private sector investment. OPIC’s projects contribute to 

several SDGs. The UN’s designated goal numbers are displayed in each goal’s icon below.

More than one billion people currently live on less than $1.25 per day.2 The first SDG – ‘No 

Poverty’ – aims to eradicate poverty by 2030. Successful OPIC projects contribute to this 

goal through job creation, economic growth, and reducing inequality – to name a few – in the 

areas of the world that need it most. 

Improving Access to Energy 

In FY15, OPIC provided support for 15 renewable energy projects, which expect to generate 

323 megawatts of power. Nearly 2.1 billion people around the globe do not have access to 

reliable energy and depend on expensive energy sources such as kerosene or diesel for light 

and electricity. OPIC is committed to partnering with innovative companies to finance offgrid energy solutions, which include village-level micro-grids and market-based consumer 

solutions, such as solar home kits. 

In FY15, OPIC 

committed four new 

projects to support off-grid solar solutions in 

Sub-Saharan Africa and Central 

America. Families and businesses in remote 

villages will now use home solar kits to access 

electricity. Expanding and utilizing off-grid 

energy solutions is critical to addressing host 

country and global issues by bringing economic 

opportunity and security to communities that live 

away from the grid. 

Improving Jobs, Strengthening Economies 

New projects in FY15 are expected to create nearly 20,000 permanent host 

country jobs, and support 37,000 temporary and construction jobs in 

developing and emerging markets. The application of OPIC’s strong labor 

standards make these jobs particularly desirable. For example, a Georgian 

company supported by OPIC rehabilitated and currently operates a 

historic three-story building in the capital city of Tbilisi. The 

multifunctional business complex includes space for meetings, 

conferences, and events, as well as four 

restaurants, making it one of the largest single 

food and beverage purchasers in the country. The 

project has had a positive developmental impact 

in the country by employing more than 200 local 

staff, supporting local business, and improving 

Georgia’s tourism infrastructure, which is an 

important driver of Georgia’s economic growth.

 

2 https://www.globalgiving.org/sdg/no-poverty/

Community Impact

OPIC-supported projects often provide benefits to local 

communities through direct environmental improvements, 

including access to renewable energy and through Corporate 

Social Responsibility activities indirectly. Of OPIC’s active 

portfolio, 47% of supported projects reported having an 

environmental benefit for the local community and 60% 

reported an engagement in charitable work, supporting the 

local community.

Project Impact

OPIC currently supports Romania’s 

leading provider of diagnostic 

imaging services, laboratory tests, 

and ambulatory consultations, 

serving 200,000 low- and middleincome patients. The company has 

consistently grown by opening 

centers in new cities to meet 

increased local demand. In FY15, 

the company employed over 350 

people, predominantly in highskilled technical positions. In 

addition, over 300 of the company’s 

employees are women.
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Annual Report on Development Impact 

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Constantly Innovating 

OPIC promotes economic opportunity by 

supporting projects that introduce 

innovative technologies to local 

communities or provide training in new 

technologies. 

Introduction of 

new technologies 

and improved 

technical skills 

increase the ability 

to build sustainable 

businesses. 

Breaking Down Barriers 

OPIC projects reach poor, underdeveloped, and rural areas of the countries in which they 

operate. OPIC may directly finance projects located in these communities, or support 

financial intermediaries that lend to these communities. Current OPIC-supported financial 

intermediaries reported lending $16 billion to individuals and businesses in rural areas as of 

FY15. 

Access to credit for 

MSMEs is essential 

for growth and job 

creation, which improve standards of living. 

OPIC supports financial institutions that make 

financing available to women-owned and 

managed businesses and entities in rural areas. 

Providing underserved segments of the 

population with access to finance stimulates 

economic growth and improves standards of 

living. 

Proactive Mitigation 

OPIC’s new renewable energy projects in FY15 

expect to avoid 900,000 tons of CO2e emissions 

per year, the equivalent 

of removing almost 

190,000 passenger 

vehicles from the road. 

OPIC’s portfolio has 

reduced cumulative 

emissions by 

approximately 84% since 

FY08.

Project Impact

Of OPIC’s active portfolio, 48% of supported projects reported the 

introduction of new technologies or the transfer of technical 

knowledge.

OPIC currently supports a project in Albania that introduced new 

technologies in essential communications fields. The project 

sponsor – a leading provider of data and voice services for 

corporate, government, and international customers – provides 

broadband, cable television, telephone, and data services to 98,000 

customers with OPIC’s support.

Project Impact

OPIC currently supports the largest microfinance institution 

(MFI) in Sri Lanka, which targets individuals excluded from 

mainstream credit opportunities including women, the selfemployed, small-scale business owners, low-income earners, 

and people living in farming communities. The project 

functions at the grassroots level to encourage participation of 

traditionally underserved clients. This MFI reported serving 

249,000 clients through FY15, three-quarters of whom are 

women.

Project Impact

OPIC currently supports a firm selling innovative 

cookstoves in Kenya that replace traditional cookstoves and 

open fire pits. These cookstoves improve efficiency and help 

customers and the climate by decreasing smoke exposure

and emissions. The World Health Organization lists smoke 

as one of top five threats to public health in developing 

countries, resulting in approximately four million premature 

deaths each year and causing a multitude of chronic illnesses 

and poor health. 


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Annual Report on Development Impact 

Fiscal Year 2015 

Sub-Saharan Africa (SSA) 

OPIC continued its strong support for African nations in 

FY15. OPIC committed to new projects in the region that 

broaden the economic base and improve the standard of 

living of the population through investments in energy, 

education, agriculture, healthcare, and telecommunications. 

For FY15 projects, 59% of the total jobs created by OPICsupported projects are expected to be created in SubSaharan Africa. 

Renewable Energy 

OPIC supports a wide-range of projects in many sectors and countries. Support for renewable energy and resources 

has taken a prominent role in the agency’s efforts. This past fiscal year, OPIC supported 15 renewable energy projects, 

which are expected to avoid the emission of 900,000 tons of CO2e per year. 

In addition to generation of renewable power for electricity 

grids, OPIC in FY15 supported four off-grid solar projects. 

These projects, where customers install individual units in 

their houses or businesses, bring electricity to those 

previously unable to access power due to either low grid 

reliability or the distance of their location from grid access 

points. 

Infrastructure Investment 

There is a clear relationship between critical infrastructure and sustainable growth. Infrastructure fosters growth by 

raising productivity and reducing transaction costs. In addition to power generation, OPIC supported infrastructure 

development in various sectors including communications, housing, transportation, warehouses, and healthcare in 

FY15. These infrastructure projects are expected to support over 3,500 construction jobs in their respective host 

countries. 

Impact of Renewable Energy

In FY15, OPIC supported 15 new renewable 

projects globally expected to create:

 Over 600 new jobs;

71% at the managerial or technical level

 $1.2 billion in additional local procurement

Impact in Sub-Saharan Africa

In FY15, OPIC supported 26 new projects in 

Sub-Saharan Africa expected to create:

 Over 11,000 new jobs to be created

 $2.6 billion in additional local procurement

 $42 million in taxes and other government 

transfers


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Annual Report on Development Impact 

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Category B and C Projects

Forty-seven projects in FY15 were screened as Category B, which are likely to have environmental and/or social 

impacts that are few in number, generally site-specific, largely reversible and readily addressed through effective 

management systems. 

Forty-six FY15 projects were screened as Category C, which are likely to have minimal adverse environmental and/or 

social impacts. 

Category D Projects 

Category D applies to financial intermediaries that make investments in or provide financing to subprojects. 

Ultimately, subprojects are categorized and cleared as Category A, B, or C and included in the project count of the 

FY in which they are committed or consented to. Category D financial intermediaries are not included in the project 

count. 

OPIC’s environmental experts conduct pre-approval site visits for Category A projects and potential 

projects with possible environmental and social sensitivities. 

OPIC support for Category A projects, as well as projects with potential environment and social sensitivities require 

lengthy reviews. As part of this process, OPIC environmental officers or external experts conduct on-site due diligence 

prior to commitment of OPIC support to any project screened as Category A. In FY15, OPIC conducted pre-approval 

site visits to 11 Category A projects in 10 countries including: 

 An electrical grid strengthening project in South Africa; 

 A phosphate mining project in Guinea-Bissau; 

 A port project in Georgia; 

 A geothermal project in Kenya; 

 A wind farm in Serbia; 

 A thermal power plant in Ghana; 

 A thermal power plant in Senegal; 

 A hydroelectric project in Uganda; 

 A wind farm in Senegal; 

 A petrochemical project in Egypt; and 

 A bauxite mine in Guinea. 

Project disclosure

OPIC publishes information on all Category A projects for public comment. 

In FY15, consistent with OPIC policy, nine Category A projects under consideration for OPIC support were posted 

on OPIC’s website for 60 days prior to action by the OPIC Board, and announced via email to OPIC stakeholders. 

This process gives interested persons and organizations the opportunity to review the ESIAs and comment on the 

projects’ potential environmental and social impacts. Full text versions of ESIAs were available for download directly 

from the OPIC website.7 Public comments were not received in response to any of the nine ESIAs. Two of these 

projects were committed in FY15. 

Transactions rejected on environmental and/or social grounds 

OPIC works diligently to ensure that its policies regarding environmental and social impact are well understood. OPIC 

counsels against projects that are potentially problematic from an environmental or social impact perspective before 

formal applications are submitted. As a result of this effort, OPIC did not reject any applications for finance or 

insurance in FY15 on environmental or social grounds. 

 

7 https://www.opic.gov/doing-business-us/OPIC-policies/environment/documents
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Annual Report on Development Impact 

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Mitigating Climate Change 

OPIC has committed to: (a) reducing the direct greenhouse gas (GHG) emissions from projects in its active portfolio 

(using the calendar year 2007 direct GHG emissions from OPIC’s active portfolio on June 30, 2008 as a baseline), (i) 

by 30% over a ten-year period and (ii) by 50% over a 15-year period; and (b) increasing investment support to 

renewable energy and energy efficiency projects. “Direct emissions” are defined as the result of the combustion of 

fuel by OPIC-supported projects. 

Since FY08, the aggregate direct GHG emissions associated with projects in 

OPIC’s active portfolio decreased by approximately 41.99 million short tons of 

CO2e from 49.76 million short tons of CO2e in FY08 to approximately 7.77 

million short tons in FY15. This represents an approximately 84.4% reduction 

in portfolio emissions.8

For the purpose of tracking progress in achieving its GHG reduction goals, OPIC 

procured the services of an outside environmental auditor to develop a baseline 

GHG inventory of OPIC-supported projects. The baseline inventory was defined 

as 100% of the direct emissions from all projects within OPIC’s June 30, 2008 

portfolio (FY08 baseline emissions).9 Accounting for 100% of project emissions 

is more conservative than the “equity” or “operational control” approach, which 

assume partial ownership of a project’s GHG emissions. OPIC accounts for direct emissions, which are verifiable and 

directly attributable to the project activity that is benefiting from OPIC’s support. Revised baseline emissions for 2008 

were estimated to be 49.76 million short tons of CO2e.10 Subsequent annual estimates were based on investor-provided 

data indicative of actual operating conditions, project descriptions, and internationally recognized algorithms. 

To account for emissions from non-reportable projects (i.e., projects below the current “significance” threshold for 

reporting of 25,000 tpy CO2e), OPIC adds a GHG “buffer” to the total emissions from reportable projects (i.e., projects 

with direct emissions above 25,000 tpy CO2e). OPIC has set the buffer to equal 5% of the total emissions from 

reportable projects.11

The total inventory of GHG emissions from OPIC-supported projects active as of September 30, 2015 (FY15 

emissions) was 7.77 million short tons of CO2e.12 This represents an 84.4% reduction in portfolio emissions from the 

FY08 baseline. The large decrease in emissions relative to previous GHG inventories was primarily due to seven 

thermal power generation projects falling off of OPIC’s portfolio during FY13, while smaller projects with lower 

GHG production levels entered the portfolio. Figure 6 shows the development of OPIC’s portfolio GHG emissions 

 

8

 In the most recent Annual GHG Report, OPIC has corrected its FY08 baseline to remove GHG emissions that were earmarked for the Latin 

America Power (LP) III Fund. In FY 2014, LP III became fully invested without having invested in any projects that were significant GHG 

sources. Therefore, OPIC decided to retroactively remove the LP III allocation from the FY 2008-2013 inventories (including the FY 08 

baseline).

9

 Total emissions during calendar year 2007.

10 For its FY15 reporting, OPIC revised baseline emissions based on new information reported by one of OPIC’s project sponsors which had

previously reported emissions based on its equity share (50%) rather than accounting for emissions for the entire project. Because OPIC accounts 

for 100% of emissions from projects regardless of equity share, the estimates for FY08 and FY09 were revised to reflect 100% of emissions. 

11 In FY09 and FY10, OPIC calculated the buffer as 5% of total emissions from reportable projects (i.e., projects emitting more than the significance 

threshold at the time of 100,000 tpy CO2e). 

For FY10 – FY14, OPIC calculated the buffer so that the buffer plus the estimated emissions for projects that emit between 25,000 and 100,000 

short tons of CO2e was equal to 5% of estimated emissions for projects that emit over 100,000 short tons (to maintain consistency with the 

previous buffer calculation). 

For FY15, OPIC is updating this methodology so that the buffer will again represent 5% of the total estimated emissions from reportable projects 

(except now with the current significance threshold for reporting of 25,000 tpy CO2e). This will result in a more conservative buffer and simpler 

calculation. OPIC has retroactively updated the buffer and yearly GHG numbers for FY10 – FY14 in its most recent GHG report (which reports 

calendar year 2014 emissions for FY15 active projects). The updated buffer amounts for these years increased OPIC’s reported emissions by 

between 0 3% (in FY10 and FY12) and 2.3% (in FY14). 

12

 Total emissions during calendar year 2014.
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Annual Report on Development Impact 

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profile as compared to the 2008 portfolio emissions baseline and the 30% and 50% reduction targets. A more complete 

explanation of OPIC’s GHG policy and current inventory is presented in Exhibit 6. 

Fiscal Year 2015 Reporting 

For FY15, OPIC reports no “Scope 1” emissions (resulting from the direct burning of fossil fuels) associated with its 

activities. OPIC reports “Scope 2” emissions (resulting from OPIC’s electricity purchases at its office) totaling 962 

short tons of CO2e. The “Scope 3” emissions that OPIC reports for FY15 are direct (i.e., Scope 1) GHG emissions 

associated with projects in OPIC’s September 30, 2015 portfolio, calculated according to the methodology mentioned 

above.13

OPIC Fiscal Year 2015 CO2e Emissions

SCOPE 1 EMISSIONS

(Emissions from OPIC’s 

direct combustion of fuel)

SCOPE 2 EMISSIONS

(Emissions as a result of OPIC’s 

Purchased Electricity)

SCOPE 3 EMISSIONS

(Direct Emissions – i.e., Scope 1 emissions 

– from projects in OPIC’s Active Portfolio)

0 short tons CO2e 962 short tons CO2e 7,772,851 short tons CO2e

On a transactional basis, OPIC considers reduction and control alternatives for all projects, including opportunities to 

enhance energy and operational efficiency; protect and enhance sinks and reservoirs of greenhouse gases, such as 

natural forests; and apply emerging technologies for capture, storage, and recovery of greenhouse gases. 

 

13

 Total emissions during calendar year 2014.

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013 2014 2015

Annual Reported CO2e Emissions

(millions of short tons per year)

Fiscal Year

Figure 5: OPIC's Portfolio GHG Emissions Profile

FY 2008 

Baseline

30% 

reduction 

required by 

FY 2018

50% 

reduction 

required by 

FY 2023

Reported

Emissions
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Annual Report on Development Impact 

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LABOR AND HUMAN RIGHTS

Country Eligibility 

OPIC tracks country eligibility as part of its worker rights statutory obligations. 

OPIC’s Environmental and Social Policy Statement outlines OPIC’s 

policies on country eligibility for OPIC-supported projects based on laborrelated statutory requirements that mirror the standards embedded in the 

Generalized System of Preferences (GSP) program, a trade benefits 

program overseen by the Office of the U.S. Trade Representative (USTR). 

Since the standards are commensurate, in order to maintain consistency 

across the U.S. Government, OPIC follows the worker rights 

determinations made by the President of the United States for the purpose 

of the GSP program. These require beneficiary countries to take steps 

towards adopting and implementing Internationally Recognized Worker 

Rights. During FY15, no countries lost their GSP or OPIC benefits on 

worker rights grounds. 

The USTR continues to conduct formal GSP country practice reviews of 

the following countries on worker rights grounds: Georgia, Fiji, Iraq, 

Niger, and Uzbekistan. In addition, in FY15 USTR accepted a petition to review Thailand. OPIC will adjust country 

eligibility status on the basis of USTR’s final determination in these countries. Also in FY15, USTR completed its 

review of the Philippines. With this review closed, OPIC continues to be open for new projects in the Philippines. 

Project Screening and Assessment 

OPIC implements policies consistent with statutory requirements related to respect for human rights and the rights of 

workers. OPIC screens all potential projects to identify labor-related and human rights impacts. If a potential project 

is not categorically prohibited, it undergoes a full labor review. In FY15, none of the potential projects reviewed were 

determined to be categorically prohibited on labor-related grounds, while two of the new FY15 projects were 

designated as “Special Consideration.”

14 This designation requires additional oversight in the form of an independent 

audit, a project site visit, and annual reporting for projects with a heightened potential for labor rights impacts. The 

Special Consideration Projects are: 

 A greenfield development of a network of telecommunications towers in Burma due to the history of labor 

rights violations in the construction of telecommunications infrastructure in Burma; the large-scale utilization 

of contracted labor during the construction phase, and the aggressive geographic footprint, scale and timeline 

of the national rollout; and 

 A large petrochemical complex in Egypt due to the large-scale utilization of temporary contract labor during 

the construction phase; political instability and restrictions on workers’ ability to join independent unions, to 

strike, and to bargain collectively; and the risk of adverse impacts on workers related to security and 

occupational safety and health during both the construction and operational phases of the Project. 

OPIC uses a rigorous methodology to assess potential labor-related risks. 

OPIC uses its labor assessment to evaluate the potential risks to workers at the project and to identify means to improve 

the project by preventing and minimizing such risks as a condition of OPIC support. The process includes the 

following:

 

14 Categorically prohibited projects have potential environmental or social impacts that preclude the project from receiving OPIC support. They 

are listed in Appendix B of the OPIC Environmental and Social Policy Statement, available on OPIC’s website. 


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Annual Report on Development Impact 

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OPIC also committed approximately $44 million in financing and insurance to women-owned and/or minority-owned 

U.S. businesses through six new projects in FY15. These six projects expect to support almost 3,000 jobs in their host 

countries. 

Finally, OPIC’s direct U.S. procurement of goods and services amounted to $20 million in FY15. Sixty-one percent 

expect to procure from small businesses and 14% from women-owned and minority-owned businesses. 



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Annual Report on Development Impact 

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Compliance with OPIC Conditions and Covenants 

Ensuring compliance with OPIC policy conditions and covenants is a critical aspect of OPIC’s monitoring programs.

The following describes the compliance-related findings of OPIC’s FY15 site-monitoring. 

 U.S. economic effects: All 17 projects monitored by the Economic Impact Analysis Group were found to 

be in compliance with OPIC conditions and covenants related to ensuring no harm to the U.S. economy and 

no loss of U.S. jobs. 

 Environment and social impact: Environmental and social monitoring focused on 13 projects with the 

greatest environmental and social risks. All site visits involved Category A and B projects. No Category C 

projects were monitored in FY15. 

o During site-monitoring, all 13 projects were found to be in full compliance with OPIC covenants 

and conditions pertaining to environmental and social considerations. 

 Labor and human rights: Labor and Human Rights monitoring focused on 25 projects with the potential 

for greatest labor risk. 

o During site-monitoring, 24 of 25 projects were found to be fully in compliance with OPIC covenants 

regarding labor conditions. 

o One site-monitored project was not fully in compliance with OPIC covenants and IFC Performance 

Standards. The project had issues related to the oversight of contractors’ hours of work and the 

timely payment of overtime wages. Following OPIC’s recommendation for corrective action, the 

project company promptly remedied the overdue wages. 

OPIC also requires clients to self-report regarding policy compliance through the SMQ. SMQ responses can provide 

early warnings about potential issues that may emerge in OPIC supported projects. 

 98% of SMQ respondents reported compliance with OPIC conditions related to environment, health and 

workers’ safety. Four projects reported that they were not compliant with OPIC conditions related to 

environment, health and workers’ safety. All projects provided explanations for the non-compliance and 

submitted information describing the steps they are taking to remedy the non-compliance. OPIC is monitoring 

them on an ongoing basis. 
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Annual Report on Development Impact 

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EXHIBITS – METHODOLOGIES, PROJECTIONS AND OTHER DATA

Exhibit 1: U.S. Employment and Associated Effects ................................................................... 23

Exhibit 2: Destination of Sales to Third Party1 Markets............................................................... 24

Exhibit 2 (cont.): Destination of Sales to Third Party1 Markets ................................................... 25

Exhibit 3: U.S. Employment Effects and Host Country Location ................................................ 26

Exhibit 4: Methodology for Calculating U.S. Employment Effects ............................................. 27

Exhibit 5: OPIC’s Development Matrix ....................................................................................... 28

Exhibit 6: OPIC’s Greenhouse Gas Policy and Current Inventory .............................................. 29

Exhibit 7: OPIC Site-Monitoring Methodology ........................................................................... 33

Exhibit 8: Projects Site-Monitored for Development Impact in FY15 ......................................... 34

Exhibit 9: Projects Monitored for Environmental and Social Compliance in FY15 .................... 35
OVERSEAS PRIVATE INVESTMENT CORPORATION 

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Annual Report on Development Impact 

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Exhibit 1: U.S. Employment and Associated Effects

Fiscal Year 2015 (Projections)

(All Dollar Figures are in Thousands)

Number Effect on

Industry of Final Destination of Project Output2 U.S. Effect on U.S. Employment3 U.S. Trade

Sector1 Projects Host Country U.S. 3rd Country Procurement3Initial Operating Total Balance3

A. Projects with Positive Effects on Employment4

Agriculture 2 $27,111 $0 $3,828 $8,630 11 2 13 $8,630

Finance 2 $13,000 $0 $0 $15,905 29 11 40 $15,905

Infrastructures5 4 $150,229 $0 $0 $26,259 22 32 54 $26,259

Information Technology 0 $0 $0 $0 $0 0 0 0 $0

Utilities 6 $401,671 $0 $0 $154,998 176 42 218 $154,998

Services 4 $63,232 $0 $8,615 $47,141 15 48 63 $47,141

Positive Total 18 $655,243 $0 $12,443 $252,934 253 135 388 $252,934

B. Projects with Neutral Effects on Employment6

Finance 47 $309,130 $0 $338 $1,292 1 1 2 $1,292

Infrastructures7 9 $184,250 $0 $0 $1,501 2 0 2 $1,501

Manufacturing 7 $23,319 $498,829 $3,902,667 $300 0 0 0 ($2,493,894)

Utilities 14 $490,559 $0 $0 $7,463 7 1 8 $7,463

Services8 5 $34,790 $0 $8,183 $808 1 0 1 $808

Neutral Total 82 $1,043,177 $498,829 $3,911,187 $11,364 11 2 13 ($2,482,829)

C. Projects with Negative Effects on Employment9

Negative Total 0 $0 $0 $0 $0 0 0 0 $0 

FY Total 100 $1,698,420 $498,829 $3,923,630 $264,298 264 137 401 ($2,229,895)

* Foreign Assistance Act of 1961 (P.L. 87-195), Sec. 240A (2) (b)

1 In FY15, 100 new OPIC-supported projects were classified into 15 categories using the North American Industry Classification System (NAICS). The 15 categories were distilled into seven categories, shown 

above.

2 Average annual effect during first 5 years of project operation.

3 Total effect during first five years of project operation

4 Projects with a U.S. employment effect of more than two jobs (10 person years or more of employment during the first five years of project operation).

5 Includes Construction, Transportation and Warehousing, Education and Healthcare; excludes Utilities. There is one project within manufacturing in Section A (positive effects). To protect business 

confidentiality, the data for this project is included in the data for infrastructure.

6 Projects with a U.S. employment effect of two or fewer jobs (10 person years or less of employment during the first five years of project operation).

7 There is one project in information technology in Section B (negative effects). To protect business confidentiality, the data for this project is included in the data for infrastructures.

8 There is one project within agriculture in Section B (negative effects). To protect business confidentiality, the data for this project is included in the data for services.

9 There were no projects supported in FY15 that projected the loss of any U.S. employment.
OVERSEAS PRIVATE INVESTMENT CORPORATION 

24

Annual Report on Development Impact 

Fiscal Year 2015 

Exhibit 2: Destination of Sales to Third Party1 Markets 

PROJECTS WITH POSITIVE EFFECTS ON U.S. EMPLOYMENT 2 

Sector Destination Annual Sales ($)

Agriculture

Burundi $770,000

Kenya $560,000

Rwanda $770,000

Uganda $1,728,000

Sector Total $3,828,000

Services

World Wide $8,615,000

Sector Total $8,615,000

TOTAL SALES FOR PROJECTS WITH POSITIVE U.S. EFFECTS $12,443,000

 

1

* Foreign Assistance Act of 1961 (P.L. 87-195), Sec. 240A (2) (A)

“Third party” refers to countries that are neither the U.S. nor the host country.

2 The 18 OPIC-supported projects in FY15 that were projected to have positive effect on U.S. employment as defined by U.S. employment effect of 

more than two jobs (10 person years or more of employment during the first five years of project operation). There were no projects supported in 

FY15 projected to result in the loss of any U.S. jobs.
OVERSEAS PRIVATE INVESTMENT CORPORATION 

25

Annual Report on Development Impact 

Fiscal Year 2015 

Exhibit 2 (cont.): Destination of Sales to Third Party1 Markets

PROJECTS WITH NEUTRAL EFFECTS ON U.S. EMPLOYMENT 2 

Sector Destination Annual Sales ($)

Finance

Mozambique $112,500

Tanzania $112,500

Zambia $112,500

Sector Total $337,500

Manufacturing

All OPIC Countries $3,891,442,627

Africa Regional $400,000

Australia $2,170,512

Bahrain $17,064

Kuwait $15,168

Mauritius $1,829,982

Mozambique $1,911,315

Qatar $24,648

Saudi Arabia $56,880

Zambia $1,016,656

Zimbabwe $3,781,963

Sector Total $3,902,666,815

Services

All OPIC Countries $3,494,000

Middle East Regional $396,000

World Wide $4,293,000

Sector Total $8,183,000

TOTAL SALES FOR PROJECTS WITH NEUTRAL U.S. EFFECTS $3,911,187,315

Fiscal Year TOTAL $3,923,630,315

 

1

* Foreign Assistance Act of 1961 (P.L. 87-195), Sec. 240A (2) (A)

“Third party” refers to countries that are neither the U.S. nor the host country.

2 The 82 OPIC-supported projects in FY15 that were projected to have neutral effect on U.S. employment as defined by U.S. employment effect of 

two or fewer jobs (10 person years or less of employment during the first five years of project operation). There were no projects supported in FY15

projected to result in the loss of any U.S. jobs.
OVERSEAS PRIVATE INVESTMENT CORPORATION 

26

Annual Report on Development Impact 

Fiscal Year 2015 

Exhibit 3: U.S. Employment Effects and Host Country Location 

In FY15, OPIC supported 100 new projects in 38 countries and five regions. These 100 projects also include 

10 projects that occur in multiple regions globally. 

Of those 100 projects, 18 had a positive impact on U.S. jobs:1 

 Two in agriculture: Tanzania and Zambia 

 Two in finance: Ghana and Latin America Region

 Three in infrastructure: Georgia, Moldova and Panama

 One in manufacturing: All OPIC eligible countries 

 Four in services: Georgia, Mongolia, Iraq and Philippines

 Six in utilities: Ghana, Kenya, Jamaica, Pakistan, Mexico and South Africa

Of those 100 projects, 82 had a neutral impact on U.S. jobs:2

 One in the agricultural sector: Tanzania 

 One in information technology: Democratic Republic of Congo 

 Eight in infrastructure: Ghana, Guatemala, Myanmar, Tajikistan and South Africa 

 Seven in manufacturing: Africa Region, Egypt, India, Indonesia, Jordan and Malawi 

 Four in services: Georgia and India 

 14 in utilities: All OPIC eligible countries, Costa Rica, Hungary, India, Jamaica, Kenya, Nigeria, 

Pakistan, Panama, Senegal, Uganda and Zimbabwe 

 47 in the Finance Sector: Africa Region, All OPIC eligible countries, Asia Region, Botswana, Costa 

Rica, Georgia, India, Jordan, Latin America Region, Mexico, Morocco, Myanmar, New Independent 

States, Nigeria, Paraguay, Peru, Poland, Tunisia, Ukraine, West Banka and Zambia 

Regional breakdown:

 26 in Sub-Saharan Africa (six with positive U.S. job impacts and 20 with neutral U.S. job impacts) 

 12 in Europe & Eurasia (three with positive U.S. job impacts and nine with neutral U.S. job 

impacts) 

 23 in Latin America & Caribbean (four with positive U.S. job impacts and 19 with neutral U.S. job 

impacts) 

 17 in Asia & Pacific (three with positive U.S. job impacts and 14 with neutral U.S. job impacts) 

 12 in Middle East and North Africa (One with positive U.S. job impacts and 11 with neutral U.S. 

job impacts) 

 10 in multiple regions (One with positive U.S. job impacts and nine with neutral U.S. job impacts) 

* Foreign Assistance Act of 1961 (P.L. 87-195), Sec. 240A (3) (C)

Projects with a U.S. employment effect of more than two jobs (10 person years or more of employment during the first five 

years of operations).

1

2 Projects with a U.S. employment effect of two or fewer jobs (10 person years or less of employment during the first resulted in 

the loss of any U.S. jobs. The majority of projects were in the services sector. No projects that OPIC supported in FY15 resulted 

in the loss of any U.S. jobs. 
OVERSEAS PRIVATE INVESTMENT CORPORATION 

27

Annual Report on Development Impact 

Fiscal Year 2015 

Exhibit 4: Methodology for Calculating U.S. Employment Effects18

Each project seeking OPIC support is individually reviewed to estimate the potential impact on employment 

in the United States. OPIC uses procurement estimates provided by the investor to calculate expected initial 

and operational procurement from the United States (by value and specific type of good or service). The U.S. 

employment figure is generated by estimating a project’s initial procurement, as well as its and five-year 

operational procurement of goods and services. OPIC considers both the direct and indirect employment 

necessary to produce those goods and services. Therefore, the employment effects incorporate the direct 

employment necessary to produce the procured goods and services, as well as the indirect employment 

required for the production of the associated intermediate inputs. 

OPIC details each type of U.S. good or service expected to be procured for each project and, using industryspecific data from the U.S. Bureau of Labor Statistics (BLS), calculates the employment effect in that 

industrial sector, as well as in the sectors that supply necessary components or inputs. By using this standard 

employment effect methodology, OPIC is able to ascertain employment generation with greater precision than 

if it used an average for all U.S. exports. By including indirect effects, OPIC’s employment figures present a 

more accurate picture of the benefits accruing to U.S. workers from the anticipated procurement of goods and 

services by OPIC-supported projects. Finally, to confirm employment effect estimates, OPIC monitors actual

economic effects after project start-up and throughout the life of OPIC’s involvement with the project. OPIC’s 

monitoring is described in further detail in the Monitoring section of this report. 

 

18 OPIC’s model does not distinguish between newly created jobs and those that are maintained. Full-time, part-time, and seasonal jobs 

are treated the same. Lags in the release of BLS data and difficulties in classifying some goods and services into standard industry 

classifications pose some challenges in calculating job estimates
OVERSEAS PRIVATE INVESTMENT CORPORATION 

28

Annual Report on Development Impact 

Fiscal Year 2015 

Exhibit 5: OPIC’s Development Matrix 

As the U.S. Government’s development finance institution, OPIC seeks to support projects that will produce 

strong positive developmental impact. While many of the direct benefits of these projects are clear from the 

start, these projects often produce indirect benefits including associated job creation, increased host country 

tax revenue and the related procurement of local goods and services. 

Every proposed project is evaluated and scored based on a scale of 1 to 100. A project must score at least 25 

points on the matrix to be considered developmental and clearly eligible for OPIC support. A score of over 

60 qualifies a project as highly developmental. OPIC scores projects using two matrices — one tailored for 

financial services projects and the other for all other projects. Both matrices are comprised of the following 

five broad categories that measure a project’s developmental impact, regardless of the project’s industry, 

sector or the host country’s level of development:

 Development Reach, which measures a project’s impact on basic infrastructure and/or its potential 

benefits to the poor and other underserved populations. For projects involving financial services, this 

factor measures the extent to which underdeveloped areas or underserved, poor populations will be 

targeted by the financial institution. 

 Environmental and Community Benefits, which assesses a project’s improvement of the environment 

and any philanthropic activities that benefit the local community. 

 Job Creation and Human Capacity Building, which includes the number of new jobs to be created, 

as well as training and employee benefits that go beyond local legal requirements. 

 Host Country Macroeconomic or Financial Benefits, which measures local procurement and fiscal 

and foreign exchange impacts. For projects involving financial services, this factor measures the 

amount of funds to be disbursed, as well as the impact on micro, small, and medium-sized enterprises, 

entrepreneurship, and home ownership. 

 Demonstration Effects, which includes technology and knowledge transfer, technical assistance to 

suppliers or borrowers, the introduction of new products (including financial products), the project’s 

impact on regulatory and legal reform, and the adoption of internationally-recognized quality or 

performance standards. 
OVERSEAS PRIVATE INVESTMENT CORPORATION 

29

Annual Report on Development Impact 

Fiscal Year 2015 

Exhibit 6: OPIC’s Greenhouse Gas Policy and Current Inventory

OPIC reports GHG emissions from all projects that have “significant” direct emissions, currently defined as 

more than 25,000 short tons per year (tpy) of CO2e. In FY09 and FY10, the threshold for “significant” direct 

emissions was 100,000 short tons of CO2e. The 25,000 tpy CO2e threshold was selected to be consistent with 

the U.S. Environmental Protection Agency’s threshold criteria for significant GHG emissions.19 

 

These projects are divided into three tiers. Tier A projects are fossil fuel-fired power generation projects that 

emit more than 100,000 tpy of CO2e. Tier B projects are projects in the oil & gas, mining, transportation, 

manufacturing, construction, or other sectors which have a Potential To Emit (PTE) of more than 100,000 tpy 

CO2e. Tier C projects are those projects that have a PTE of less than 100,000 tpy CO2e, but more than 25,000 

tpy CO2e. Annual independent GHG audit reports for projects that are expected to emit more than 25,000 tons 

of CO2e are available at www.opic.gov. 

To account for emissions from non-reportable projects (i.e., projects below the current “significance” 

threshold for reporting of 25,000 tpy CO2e), OPIC adds a GHG “buffer” to the total emissions from reportable 

projects (i.e., projects with direct emissions above 25,000 tpy CO2e). OPIC has set the buffer equal to 5% of 

the total emissions from reportable projects.20 By accounting for these sources, OPIC is consistent with the 

GHG accounting methodology of The Climate Registry.21 

OPIC calculates GHG emissions from projects in its active portfolio using methodologies and algorithms that 

rely on activity data such as fuel consumption or gas/oil throughput. In most cases, OPIC uses methodologies 

approved by The Climate Registry. For emissions from sources without Registry-approved methodologies, 

OPIC uses emission estimate methodologies provided by the U.S. Environmental Protection Agency. 

Following the completion of an independent GHG audit of the FY15 emissions, OPIC provided investors the 

opportunity to comment on the Independent Auditor’s estimates, activity data, and methodology. The 

following table contains the final auditor estimates after consideration of investor input. 

 

19 The U.S. Environmental Protection Agency’s threshold criterion for significant GHG emissions was set at 25,000 metric tons per 

year. To maintain consistency with units, OPIC uses 25,000 short tons, which is conservative – since 25,000 metric tons converted to 

short tons would equal a reporting threshold of approximately 27,500 short tons. 

20 In FY 2009 and FY 2010, OPIC calculated the buffer as 5% of total emissions from reportable projects (i.e., projects emitting more 

than the significance threshold at the time of 100,000 tpy CO2e). 

For FY 2010 – FY 2014, OPIC calculated the buffer so that the buffer plus the estimated emissions for projects that emit between 

25,000 and 100,000 short tons of CO2e was equal to 5% of estimated emissions for projects that emit over 100,000 short tons (to 

maintain consistency with the previous buffer calculation). 

For FY 2015, OPIC is updating this methodology so that the buffer will again represent 5% of the total estimated emissions from 

reportable projects (using the current significance threshold for reporting of 25,000 tpy CO2e). This will result in a more conservative 

buffer and simpler calculation. OPIC has retroactively updated the buffer and yearly GHG numbers for FY 2010 – FY 2014 in its 

most recent GHG report (which reports calendar year 2014 emissions for FY 2015 active projects). The updated buffer amounts for 

these years increased OPIC’s reported emissions by between 0.3% (in FY 2010 and FY 2012) and 2.3% (in FY 2014).

21 The Climate Registry is a nonprofit collaboration among North American states, provinces, territories, and Native Sovereign Nations 

that sets consistent and transparent standards to calculate, verify and publicly report greenhouse gas emissions into a single registry. 

The Registry supports both voluntary and mandatory reporting programs and provides comprehensive, accurate data to reduce 

greenhouse gas emissions. The 5% value is from The Climate Registry’s General Reporting Protocol, Version 1.1, May 2008, p. 58. 

Available online at: http://www.theclimateregistry.org/downloads/GRP.pdf. 


*

*Information has temporarily been redacted, including to protect the safety of implementing partners.
OVERSEAS PRIVATE INVESTMENT CORPORATION 

33

Annual Report on Development Impact 

Fiscal Year 2015 

Exhibit 7: OPIC Site-Monitoring Methodology 

Environment, U.S. Economic Impact, Labor, and Host Country Developmental Impact 

OPIC performs comprehensive and integrated monitoring to evaluate the U.S. and host-country economic effects, as 

well as the environmental, social, health and safety, and general working conditions of the projects it supports. OPIC’s 

integrated project monitoring is designed to ensure that each project complies with statutory and contractual 

requirements in these areas. Project monitoring consists of site visits to projects, in addition to analysis of information 

submitted annually by investors in the form of an online Self-Monitoring Questionnaire (SMQ). Since 1993, OPIC 

has required SMQs of all investors per the OPIC finance agreement or insurance contract. 

Using a statistical sampling methodology combined with risk-based monitoring, OPIC identifies projects that staff 

from one or more disciplines will site-monitor. The projects selected for site-monitoring include: (1) a random sample 

of projects that have been active for five or more years and have not been monitored previously; (2) projects that are 

sensitive with respect to U.S. economic effects, labor or environment, social, health and safety issues; and (3) projects 

that fit in logistically with randomly selected or sensitive projects. 

Labor 

OPIC monitors projects for compliance with contractual worker rights requirements through a combination of annual 

reporting by companies as well as site visits to both random and selected samples of projects. OPIC targets its worker 

rights monitoring efforts toward countries and sectors with a higher potential for possible worker rights violations. 

Certain areas of worker rights violations may be difficult to identify from a typical project site-monitoring visit. In 

those instances where OPIC determines further investigation is warranted, OPIC may employ trained and certified 

labor auditors to perform a full project audit. Auditors are often recruited locally, and those with a reputation for 

impartiality and credibility among both the labor and business communities are preferred. The auditors spend as much 

time as necessary to investigate potential violations thoroughly. At a minimum, an audit would include independent 

and confidential interviews with employees and management. Relevant entities such as government officials, 

knowledgeable local NGOs, and organized labor groups may also be interviewed. 

Environment, Social, Health, and Safety (E&S) 

With respect to E&S issues, projects selected for site-monitoring in a given year are prioritized based on environmental 

and social risk. Environmental and social risks depend upon several factors including project sensitivity, host country 

context, project-level environmental and social management systems, and investor experience in implementing 

projects of similar complexity. OPIC assesses the E&S performance of a project against applicable benchmarks 

including contract conditions, international standards and guidelines, and industry best practices. Factors included in 

the performance assessment include an evaluation of the project’s environmental and social management systems, the 

effectiveness of mitigation, including pollution controls in risk reduction, and the efficiency of the operations, 

including energy efficiency. Interviews with the local community are conducted where relevant. 

U.S. Economic Impact 

OPIC monitors projects for their actual impact on the U.S. economy, including the U.S. employment generation 

effects. OPIC ensures that projects do not negatively impact the U.S. economy. This analysis includes verifying levels 

of exports to the U.S. or other countries (if any), calculating the U.S. balance of payments impact, and verifying 

compliance with any restrictions included in the OPIC loan agreement or insurance contract (e.g. restrictions on 

exporting to the United States. or significant U.S. export markets). 

Development Impact 

Regarding host country development impact, OPIC monitors projects using the same criteria used at the time of project 

approval. Thus, an “apples-to-apples” comparison can be made between original development impact projections and 

actual operations. For example, if a project originally expected to hire 100 local workers, actual employment numbers 

are verified and compared to this forecast. Additionally, if a project is expected, for example, to build a school for the 

children of its employees, this will be verified. Other developmental impacts not identified or anticipated at the time 

of application are also evaluated and quantified during site-monitoring. Finally, the project is re-revaluated using 

actual findings based on the same criteria used in the project’s original OPIC review. OPIC conducted “lessons 

learned” exercises based on these and other findings.