| 1 

As the U.S. Development Finance Institution, OPIC is an effective, and 

financially self-sustaining, instrument of U.S. foreign policy. 

OPIC mobilizes private capital to help solve critical world challenges and in doing so, 

advances U.S. foreign policy and development goals. OPIC work with the U.S. private 

sector helps U.S. businesses gain footholds in emerging markets -- catalyzing revenues, jobs and 

growth opportunities both at home and abroad. OPIC achieves its mission through financing, 

guarantees, political risk insurance, and support for private equity investment funds. 

and its mandate to operate as a self-sustaining entity have helped 

make OPIC a net revenue generator for the government. By balancing risks, returns and 

resources, OPIC collects more than it spends, maintains itself as a fully self- sustaining Federal 

Corporation, and helps to reduce the deficit. OPIC had met its statutory requirement to operate 

on a self-sustaining basis even before 1982, when President Ronald Reagan hosted a White 

House event where he accepted a check from OPIC 

original paid-in capital. Most recently, in FY 2010, OPIC positive effect on the federal budget 

totaled $352 million the 33rd consecutive year that OPIC has contributed to the budget. On a 

private-sector basis, OPIC had audited net income of $260 million in FY 2010. 

Only the private sector can make economic development sustainable. By investing and 

creating resources, businesses make broad based economic growth possible. Every dollar of 

OPIC s financing levers $2.50 of private capital. And the OPIC financing gets paid back, so it 

can be recycled repeatedly. OPIC has a 40 year track record of prudent risk management and 

consistent revenue generation while creating partnerships that engage US businesses in critical 

foreign policy priorities. 

, as proposed, will have a net negative impact of -$188.1 million of 

appropriated budget authority, once again making a positive contribution to the budget. 

operating funds are provided out of its own balances, not out of the general fund at the Treasury. 

As budgets come under increasing pressure, approaches like those used by OPIC are a critical 

solution to supporting development goals in a cost effective way. 

OPIC is a flexible tool of U.S. foreign policy. As a small agency, OPIC is flexible and nimble, 

so it can respond immediately to foreign policy needs for example in Haiti, Pakistan, 

Afghanistan, and as well in clean and renewable energy. OPIC will be very engaged in 

investing, and supporting stability and opportunities, in the wake of unrest in the Middle East 

and North Africa. 

The private sector is critical to U.S. development goals. 

development policy through the Partnership for Growth in El Salvador, Ghana, Tanzania, and the 

Philippines. Because it works with the private sector, OPIC fosters a business-to-business 
2 | 

aspect of U.S. foreign and development policy. This is increasingly important, since private 

sector capital flows to emerging markets far outweigh official development assistance. In 2009, 

developing countries received $5.72 of Foreign Direct Investment for every $1 of Official 

Development Assistance.1 Influencing these private sector activities is key to growth and 

stability in countries such as Afghanistan, Pakistan, or Iraq, and also in cross-cutting issues as 

global climate change. 

OPIC supports and engages U.S. business, especially small business. U.S. companies, both 

large and small, seek to expand into new markets, thus creating demand for U.S. exports and 

income flows back to the U.S. economy. OPIC helps that process occur. This is especially 

critical at a time when U.S. domestic markets have not yet fully recovered from the recession, 

while emerging markets are growing rapidly with enormous pent-up demand. OPIC focuses 

especially on supporting small and medium sized U.S. enterprises. In fact, in FY 2010, U.S. 

 were significantly involved in 82 projects. 

Supporting the s investments that entail increased 

subsidy allocation and administrative expense. There are three reasons for this: 

First, although mainstream financial markets have begun to recover from the global 

economic downturn, private sponsors in emerging markets continue to find it challenging 

to secure equity or debt financing. As a result, the demand for OPIC financing and 

insurance, particularly in foreign policy priority but risk-intensive countries, has 

dramatically increased. Priority countries such as Iraq, Afghanistan and Pakistan are 

particularly difficult markets and OPIC financing in these markets requires more 

resources. 

Second, increasing emphasis on helping small and medium U.S. enterprises 

access these emerging markets requires the dedication of greater resources to a larger 

number of smaller sponsors and projects. 

Third the greenhouse gas emissions of its outstanding 

portfolio by 50% entails a significant redirection of projects to new markets and 

technologies that require upfront costs in analysis and business development.

 

1

 Total net bilateral ODA in 2009 was $83.6 billion (See http://stats.oecd.org/Index.aspx?DatasetCode=TABLE1) . 

FDI to Developing countries was $478.3 billion (See http://www.unctad.org/en/docs/webdiaeia20111_en.pdf.) 
 | 3 

OPIC has a long history of effectively engaging U.S. private investors in emerging markets 

to support U.S. foreign policy and development objectives. Since 1971, OPIC has developed 

and provided a range of risk mitigation and financing solutions to private investors in regions 

and sectors of importance to the United States. Over that period, private investment has become 

an ever more important component of the U.S. approach to long term economic development in 

emerging markets growing from less than 30% of U.S. financial flows into developing 

countries around the time that OPIC was founded, to over 80% today. During that period, OPIC 

has catalyzed $200 billion worth of private investment in nearly 4,000 projects in developing 

countries and emerging markets. 

OPIC 

constantly and continuously improves its own 

efficiency: creating, adopting, and innovating 

around best practices. This spirit comes from 

to its partners. OPIC for example works through 

networks of private sector partners such as 

Network (EDN) (see page 23), and interagency 

collaborations. Internally, OPIC has organized 

itself around an integrated vision of products and 

processes, encouraging and supporting innovation 

and crosscutting thinking. These measures are 

policy 

standards for labor, human rights, environmental, 

and social policies; as well as steps to measure and maximize OPIC

through (see page 12 and Appendix D, page 33). OPIC evaluates 

its projects at the point of approval, and through a continuing monitoring process. Through these 

measures, OPIC seeks a balanced awareness of risk, returns, and resources as it seeks to grow its 

program level and impact. 

and revenues which OPIC supports with very limited resources OPIC generates more than $1.2 

million in profit and supports more than $60 million in portfolio for each employee at OPIC. 

OPIC executes its mission with limited overhead and at no net cost to the taxpayer by 

charging market-based fees and operating efficiently. OPIC has demonstrated a nearly 40-

year history of prudent, sustainable, and effective support for U.S. private investment, foreign 

policy, and development. In FY 2010, OPIC facilitated 97 new projects totaling $2.4 billion in 

finance, while managing a portfolio of $14 billion in exposure and continuing to operate on a 

self-sustaining basis. OPIC accumulated reserve of $5 billion in its core account helps ensure 

that even in a worst-case scenario; any losses will not be a drain on the general fund at the 

Treasury. 
4 | 

OPIC supports women and minority-owned enterprises as well as small and medium 

enterprises. OPIC continues to expand several outreach efforts targeted specifically at small, 

and women and minority-owned small businesses. Enterprise Development 

Network (EDN) now includes over 100 transaction originators and advisors, most of whom focus 

Expanding Horizons program has held workshops for small business 

in 11 major U.S. U.S. cities, with more scheduled for FY11. Over 1,200 companies have 

participated in these workshops in the past 3 years. By reaching out to these small companies, 

OPIC offers these entrepreneurial and innovative small companies the tools they need to access 

emerging markets, while supporting the development and policy goals of the U.S. government 

and helping the companies grow and create jobs here in the U.S. 

OPIC mobilizes private investors to support Administration priorities. By catalyzing 

investment in regions and sectors of particular importance to the U.S., such as the Broader 

Middle East, Sub-Saharan Africa, and South Asia, OPIC can respond quickly to countries of 

immediate concern, such as Haiti, or to new Administration initiatives. For example: 

At the Cancun conference in December 2010, OPIC announced that it would generate a 

significant portion of the USG Copenhagen and Cancun commitments for climate 

change finance. As part of the Administration initiative, OPIC announced that it will 

provide at least $300 million in financing for new private equity investment funds that 

could ultimately invest more than $1 billion in high growth renewable resources projects 

in emerging markets. The budget cost for this program is expected to be net negative. 

OPIC will provide up to $2 billion in financing for private sector investment in Egypt, as 

well as Tunisia, Morocco, Iraq, Jordan, Lebanon, the Palestinian Territories, and 

potentially Algeria, Oman, and Yemen. Private capital investment is essential for 

security, stability, growth and job creation in the Middle East and North Africa region. 

Partnership between US and Arab businesses are a powerful means of promoting 

development and shared prosperity. By catalyzing investments in small and medium 

enterprises, infrastructure, and other key sectors, OPIC hopes to bolster the private 

 OPIC will identify and encourage 

private businesses, especially U.S. businesses, to invest in the region by providing direct 

loans, guarantees and political risk insurance. OPIC will look to partner with banks, 

investment funds, diaspora entrepreneurs, and others interested in investing in projects 

which promote regional stability. Where possible, OPIC would partner with USAID and 

other IFIs to bring complementary instruments, such as technical assistance funds, to the 

region. 

engagement with Muslim-majority 

countries, OPIC supported the creation of 8 investment funds with $675 million in 

potential commitments by OPIC which may provide over $3.2 billion in private equity 
 | 5 

capital to increase technology development in the Middle East and North Africa, West 

Africa, and Southeast Asia (see pages 26-28). 

In Pakistan and Afghanistan, OPIC is working closely with USAID and the State 

Department to support private capital investment in projects that provide stability and 

opportunities for the local population -- such as access to finance for SMEs -- as part of 

food production, microfinance, and power-generation (see pages 16-18). 

In Haiti, OPIC continues to respond to reconstruction needs by providing finance and 

insurance to U.S. businesses engaged in projects for housing, access to finance for SMEs, 

power generation, and cellular phone service. 

OPIC partners with other federal agencies to coordinate activities and maximize its impact on 

Administration priorities. In collaboration with the Department of State, the Treasury 

Department, USAID, the Millennium Challenge Corporation, as well as USTDA, and the 

Export-Import Bank, OPIC supports foreign policy and developmental objectives as well as the 

broad economic goals of the Administration. OPIC also engages with its peer Development 

Finance Institutions such as the IFC, and bilateral development finance institutions in Europe and 

elsewhere to further leverage the impact of its work. 

While development and foreign policy, OPIC projects also 

often lead to new U.S. jobs and exports as well. Since 1971, OPIC projects have generated a 

cumulative $74 billion in U.S. exports and supported more than 274,000 U.S. jobs. As a member 

 OPIC is working in support of National Export 

Working with the Administration s International Clean Energy Assistance initiative, OPIC 

will increase its efforts to support U.S. private investment in environmental sustainability, 

especially clean and renewable energy. Investments in other critical natural resources such 

as agriculture and water will also be prioritized. OPIC will deploy its full suite of products 

and services to serve these objectives as well as developing new products and approaches. 

Clean and renewable energy is an emerging sector where U.S. private investment can make a 

substantial and sustainable impact on emerging and transitional economies and a policy area of 

growing importance. Financing and insurance products will be deployed to support U.S. 

investors in renewable energy such as wind power, waste-to-energy, solar and bio-fuels. 

Investments will also be explored in the broader field of clean technologies, and energy 

activities in power and legacy infrastructure in accordance with its new greenhouse gas 

emissions policy. 
6 | 

More broadly, OPIC will continue its support for other aspects of sustainable development 

such as agriculture and food security, small and medium enterprise finance, microfinance, 

housing, and technology. OPIC will seek to magnify its development impact by supporting the 

as investments in businesses that are designed with the intent to generate positive social and/or 

environmental impact, can include business sectors such as basic needs (food, water, sanitation, 

housing), basic services (education, health care, clean technology), and financial services 

(microfinance and small and medium enterprise finance). OPIC has long been involved in these 

sectors and will be actively engaged in helping to shape the asset class as it develops. 

Geographically, OPIC will focus on those areas of highest development need and greatest 

foreign policy priority, such as Haiti, the Broader Middle East, Africa, and South Asia. 

by engaging 

with Muslim-majority countries via the OPIC Global Technology and Innovation Funds Call, by 

rebuilding the economic infrastructure and support sustainable development in Afghanistan and 

Pakistan and by responding to humanitarian crises, such as those in Haiti and Pakistan. 

budget request will reinforce ability to quickly and efficiently respond to such 

priorities. 

OPIC plans to continue to expand its support for U.S. small and medium enterprises, 

women and minority-owned enterprises, as well as increasing its emphasis on projects that 

positively impact the U.S. economy and employment. OPIC is supporting the goal of financial 

inclusion with its Micro and Small Enterprise program as well as support for the G20 SME 

Finance Challenge. 

 

OPIC will continue to improve the efficiency and effectiveness of its operations and to 

develop innovative new solutions for U.S. private investors. OPIC continues to refine its 

strategic plan and associated performance scorecard, improving the efficiency of its investment 

procedures and processes, upgrading its IT infrastructure and resources, and most importantly, 

increasing its investment in the training and expertise of its employees. OPIC will also continue 

to explore the development of new financing and risk mitigation solutions for U.S. private 

investors that will enable it to better support its foreign policy and development goals. 

OPIC is requesting a modest increase of $5.58 million to its administrative expenses budget for a 

total level of $57.89 

needs, and its investments in systems, people, and integrated processes. These resources are 
 | 7 

OPIC seeks to support U.S. clean energy by expanding the reach and amount of its finance and 

funds programs, and developing new markets in which to provide political risk insurance. 

OPIC requests $31 million in Credit Reform resources, an increase of $2 

FY 2010 level of $29 million. In addition, the Administration intends to use existing authorities 

to transfer $4 million from the State Department to OPIC to support the International Clean 

Energy Assistance Initiative. OPIC needs the additional resources to accommodate the cost of 

policy priority projects in riskier countries. Projects in Afghanistan, Pakistan, Haiti, and Iraq, 

especially small business projects, are much more resource-intensi

projects, and often entail more risk. 

OPIC has worked hard to address its mandates on the environment, labor, and human rights 

policies. Under a Congressional mandate that requires a reduction in greenhouse gas emissions 

from its portfolio, OPIC is substantially shifting its sector exposure from power, oil, and gas to 

greener more environmentally sustainable transactions. OPIC needs modest resources to enable 

it to maintain its track record in successfully managing its exposures and reserves and to sustain 

 policy and the market. 
8 | 

OPIC requests the following to be self-funded from its offsetting collections. No 

appropriations from the general treasury are requested: 

estimates a net negative appropriated budget authority 

of $188.1 million. 

$57.89 million in administrative resources, an increase of $5.58 million from 

enacted FY 2010 levels and the FY 2011 Continuing Resolution through March 4, 

2011. 

$31.0 million in credit program funding, an increase of $2 million over FY 2010. 

An anticipated transfer of $4 million from the State Department using existing 

transfer authorities, to support the International Clean Energy Assistance 

Initiative. 

This Request will fund an increased financing capability of up to $3.1 billion 

compared to $2.3 billion projected in the last budget. 

These resources will support clean and renewable energy initiatives, and to maintain 

prudent portfolio and financial 

Despite these proposed increases, through higher negative subsidy and other income on 

clean energy finance and other transactions, budget estimates for FY 2011 and FY 2012 

project essentially the same net negative budget authority. 

Appropriated Resources FY 2010 FY 2011 FY 2012 

(Dollars, Millions) Actual (PB 2011) Request 

Administrative Expenses $ 52.31 $ 53.9 $ 57.89

Credit Subsidy 29 29 31

TOTAL, Gross Appropriations $ 81.31 $ 82.9 $ 88.89

Net Offsets to Budget Authority $ (288) $ (272.3) $ (277)

Net (Negative) Budget Authority $ (206.7) $ (189.4) $ (188.1)

Memo: Potential Transfer Authority $ 20 $ 20 $ 16

 Anticipated Subsidy Transfer - - $ 4
 | 9 

not only small in proportion to its portfolio; it also 

makes possible positive contribution to the budget. The request will enable OPIC to 

further: 

Support financing targets for Clean and Renewable Energy and for Impact Investments 

with deal teams and the necessary portfolio management for those investments. 

Mobilize resources to research, evaluate, and support less greenhouse-gas-intensive 

sponsors and projects. 

Support key foreign policy priorities, such as enterprise development in Afghanistan, 

Pakistan, the Middle East and North Africa. 

unqualified audit opinions. 

Train junior staff for progressively more challenging responsibilities and to assist current 

staff to adapt to changing financial requirements in program demand. 

Continue incremental progress in replacing outdated systems. 

n the context of 

rising workload which results from a mix of more highly developmental and greener projects; 

increased support for private equity funds, and increased support for projects sponsored by small 

and medium U.S. enterprises. These shifts, mandated by the President and the Congress, require 

more in-depth analysis, and more hands-on involvement by project officers. Moreover, new 

stakeholders, to Congress, and the Administration. These requirements, along with cross-cutting 

transparency reporting, internal controls, and government integration efforts, require additional 

administrative support. 

OPIC has addressed challenges on diverse policy fronts as well as in its portfolio management. 

On the policy side, OPIC has worked hard to address its mandates on the environment, labor, and 

human rights policies. OPIC also is strengthening the management of its portfolio as 

transactions move to disbursement, and mature through their life cycle. Modest but growing 

levels of administrative and staff resources are needed to enable OPIC to maintain its track 

responsiveness to the changing requirements of public policy and the market.

OPIC recognizes that effective Information Technology (IT) management and operations 

requires good integration of information resources, processes, and people. 

Information Officer has developed an IT Strategic Plan that focuses on an effective integration of 
10 | 

 

ies are established. 

OPIC intends to continue projects to upgrade and integrate a patchwork of stand-alone systems 

that do not adequately support workflow, track documents, or enable an instant, robust analysis 

of usiness processes are built on antiquated software 

and data, which limit reliability and flexibility. The planned improvements will make it possible 

 to support 

rategic efforts to balance risk, returns, and resources. 

While pursuing improvements, OPIC is also constantly strengthening its institutional capability 

to develop, manage, and maintain its technology projects. This will help ensure that resources 

provided to OPIC will be used efficiently. 

OPIC continuously strives to build its human capital, to provide an effective organizational 

structure, and to ensure effectively support mission and goals. 

In September 2010, for the second consecutive year, OPIC was rated second overall as a place to 

work among small agencies in the federal government, according to rankings issued by the 

the Study of Public Policy 

Implementation. This was based on a survey conducted by the U.S. Office of Personnel 

Management that represents the views of 212,000 federal employees.2 OPIC will continue to 

support its people with training and the necessary tools to enable innovation and effective and 

Human Capital Accountability Plan that will guide and transform how it assesses, plans, and 

responds to human capital challenges and needs. In FY 2010 OPIC performed a comprehensive 

workforce analysis to inform our staffing and succession planning. 

 

2 See http://data.bestplacestowork.org/bptw/detail/GB00 
 | 11 

 high strategic and 

development value, OPIC requests a credit reform funding level of $31 million. 

The Administration intends to use its existing transfer authority to provide $4 million in 

credit funding to OPIC to support clean and renewable energy projects.3 

In addition, OPIC requests three-year availability, as has been provided for the last three 

appropriations and as was requested for the FY 2011 appropriation. OPIC also requests a 

continuation of existing transfer authority to address higher risk projects where support is 

necessary to U.S. foreign policy objectives. 

Supporting foreign policy priorities by targeting OPIC assistance to strategically 

important, yet higher risk, countries such as Afghanistan and Pakistan; and, as conditions 

warrant, the Middle East and North Africa. 

Supporting small business lending, this generally draws relatively high levels of subsidy, 

even though individual transactions are small. 

Depending on final technical assumptions to be provided by OMB, OPIC forecasts that the 

requested budget will support estimated lending levels of approximately $3.1 billion dollars in 

direct and guaranteed loans. 

OPIC focuses on achieving the goal of development and foreign policy impact in emerging 

markets through self-sustainable and efficient mobilization of U.S. private investment and skills. 

Therefore, OPIC targets development impact in the context of self-sustaining financial 

operations. 

OPIC management places a high priority on the developmental quality of the projects it 

supports in addition to compliance with guidelines around environmental, social, labor and 

human rights policies. OPIC uses several tools to focus the agency on its development mission 

and policy objectives. 

 

3 See Appendix A - Export Financing Transfer Authorities 
12 | 

 is a comprehensive analytical tool for measuring the developmental 

impact of individual projects that OPIC supports. The Development Matrix provides more than 

25 objective benchmarks for quantifying the developmental impact of projects with respect to 

job creation, technology transfer, human resource development, social benefits, private sector 

development, infrastructure development, and national benefits. OPIC calculates an anticipated 

(ex ante) development score to assist top management in its consideration of a project, and it 

calculates an actual (ex post) development score after a project has been implemented. 

A development matrix score between 50 and 100 is considered developmental and a score above 

100 is considered highly developmental. OPIC evaluates both its overall performance and the 

performance of the individual line departments on the basis of the average development scores of 

all projects. Appendix D describes the development matrix in further detail. 

2009 2010 2011 2012

Target Actual Target Actual Target Target

Number of Projects . 117 . 97 . . 

Average Score 100 86.1 100 84 100 100 

Figure 1 Development Matrix Scores 2009 - 2012 

OPIC continues to target an ambitious average development score of 100, despite significant 

changes in its overall financial and operating environment. These challenges include the 

continued slow recovery from the world financial crisis, which has made U.S. private investors 

more reluctant to participate in projects in general and in particular in emerging markets, and 

refocus of its programs to achieve a significant reduction in greenhouse gas emissions. 

Despite these adjustments, the average development score in 2010 averaged 84. 

For decades, OPIC has been a leader among bilateral international investment institutions 

in developing and applying environmental and social policies that advance long-term, 

sustainable economic development. 

OPIC released its revised and strengthened Consolidated Environment, Social, and Labor and 

Human Rights Policy Statement on October 15, 2010. 4 This combines an evolving set of 

 

4 See http://www.opic.gov/doing-business/investment/environment/policy_revision 
 | 13 

international best practices with our policy review criteria OPIC is proud to remain at the 

forefront of these critical issues. 

OPIC continues its work to align with leading development financial institutions, offering greater 

certainty to investors while ensuring the highest standards in responsible investment policy. At 

the same time, this process 

climate change and is consistent with our attentiveness to the economic impacts of OPIC 

investments, at home and overseas. The end result provides a consistent and transparent 

responsibilities of private sector investors with whom we do business, and promotes best 

practices in addressing stakeholder concerns. 

To increase transparency, OPIC decided in 2009 to publicly identify potential 

environmental issues at a much earlier stage in the project development process than in the 

past. 

 projects with the potential for significant environmental impact. In addition, OPIC 

has developed an Environmental and Social Policy Statement to provide applicants (e.g., 

investors, lenders, or project sponsors) notice of the general environmental and social 

requirements that OPIC may apply in evaluating prospective projects, and monitoring on-going 

OPIC-supported projects. These environmental and social requirements apply, as appropriate, to 

all projects supported through OPIC insurance, direct loans, or investment guaranties, including 

support through financial intermediaries such as investment funds or financial institutions that 

make equity or loan investments.5

the best practices of major multilateral development finance institutions like the World Bank and 

the European Bank for Reconstruction and Development. This simplifies investor understanding 

of compliance requirements, particularly where several such institutions are involved in a 

transaction, and helps assure that OPIC continues to adhere to best practices in its environmental 

and social policies. 

OPIC has redesigned its web site to increase and better organize the information available 

to the public. The site now includes non-business confidential summaries of major OPICsponsored projects and of smaller sub-Board projects, as well as non-business confidential 

versions of certain environmental documents on Category A projects.6

In accomplishing its development mission, OPIC also focuses on mobilizing private capital in an 

efficient and self-sustainable manner. 

 

5 See http://www.opic.gov/doing-business/investment/environment/policy_revision 

6 See https://www2.opic.gov/environasp/environtable.asp 

| 15 

Within its overarching development mission, OPIC maintains a special focus on key regions 

which are crucial to short- and long-term U.S. foreign policy concerns, as well as specific sectors 

that serve development objectives particularly well. 

s guided by U.S. foreign policy objectives. Within 

those objectives, OPIC is focusing on three regions of the world where its programs are likely to 

complement most effectively the U.S. foreign policy objectives: the Broader Middle East, Africa, 

and Asia. In particular, OPIC continues to focus on stimulating economic activity in countries 

working to overcome the legacy of conflict. 

OPIC-supported private investment in these regions can advance U.S. foreign policy 

objectives. OPIC continues to focus on supporting projects in countries and regions that are 

either impacted by current conflict (e.g., Afghanistan and Pakistan, Iraq, and the West Bank), or 

are seeking to recover from recent conflict (e.g., Lebanon, Liberia and Georgia). OPIC focuses 

on supporting private investment and activities by U.S. non-governmental organizations (NGOs) 

 stake and 

confidence in peace and stability. OPIC proactively seeks out and works with investors and 

partner organizations to launch projects that together will help the country to jumpstart and then 

sustain economic growth. 

In the Broader Middle East and North Africa, OPIC-supported private investments generate 

increased employment and demonstrate tangible economic benefits resulting from reduced 

conflict, greater democracy, and increased openness. OPIC is actively engaged in supporting 

investments that create jobs by increasing access to technology and fostering entrepreneurship 

through investing in small and medium sized enterprises. 

In Afghanistan and Pakistan, OPIC-mobilized capital continues to support SMEs and 

microfinance, as well as technology and investment funds. For example, 

As one of eight new OPIC-supported funds designed to facilitate investment in Muslim-majority 

countries in the Middle East, Africa and Asia, this investment fund in particular will enable 

Pakistani businesses to take advantage of recent technological advances in such sectors as health 

*

* Information has been Redacted in accordance with the two principled exceptions of the Foreign Aid Transparency and Accountability Act 

(FATAA) of 2016; including the health and security of implementing partners, as well as national interest of the United States.
16 | 

care, agriculture, education and telecommunications. In so doing, these investments will 

accelerate economic growth, opportunity and stability in the country. This fund was among 87 

June 24 meeting. 

OPIC has launched projects in Lebanon, Jordan, and the West Bank. In Lebanon, OPIC and 

Citibank worked together to speed up 

Lebanese banks. After the 2006 conflict, OPIC was able to rapidly disburse $108 million in 

2007 to help small and medium sized businesses rebuild, reopen and become productive again. 

In 2008, another framework agreement was established with Citibank to further support the 

continued need for financing by entrepreneurs. 

In the West Bank, where the effects of the conflict are still being felt conflict, OPIC supported 

the Affordable Mortgage and Loans project (AMAL), a $485 million program to make 

conservatively-underwritten mortgage loans available to purchasers of new housing construction 

in several developments north of Ramallah in the West Bank. Rawabi, the first of these 

developments, commenced physical construction in January 2010. The complex will provide 

affordable mortgages to 40,000 Palestinians, as well as new office buildings, shops and 

restaurants that are to be constructed in an environmentally sustainable manner. The plan is that 

this development will seed other developers to follow suit and create a community. 

In the Palestinian Territories, OPIC is working to mobilize private capital for a project to permit 

school-age children to purchase low-cost, low-power, internet-wired computer notebooks, 

enabling them to become better engaged with their education. OPIC is building this program on 

*

*

* Information has been Redacted in accordance with the two principled exceptions of the Foreign Aid Transparency and Accountability Act 

(FATAA) of 2016; including the health and security of implementing partners, as well as national interest of the United States.
 | 17 

a self-sustaining, commercial basis. To borrow a line from One Laptop Per Child, the 

organization focused on providing laptops to children in developing countries since 2002: 

world and to 

In Iraq,

evidenced with the first disbursement to the third tranche developed by the group. After 

supporting middle-market, agricultural and small businesses in the first two facilities, this latest 

$19 million facility will be focused on small and medium sized businesses. 

Also in Iraq, CHF and OPIC continue to partner to provide micro-business owners and 

individuals the ability to strengthen and expand their businesses, stabilize their incomes, and 

improve their homes and quality of life. The local borrower is new, a for-profit Iraqi company 

transforming an existing grant-funded operation to a long-term, self-sustaining microfinance 

lending company. Su

priorities. 

In Israel, OPIC supports the deployment of private capital to help small and medium sized 

businesses located in the Negev and Gilboa regions secure new financing. Credit has not 

traditionally been available to smaller businesses due to lack of competition in the banking sector 

in the south of the country, severe collateral requirements, and credit discrimination. Because the 

Negev region is located far from the traditional centers of tourism and business, unemployment 

there is 50% higher than the national average. The Gilboa is the northern Israeli region that abuts 

Jenin, a Palestinian town in the West Bank. Authorities in recent years have looked to the Gilboa 

region as a possible model for Arab-Jewish coexistence in Israel with Israeli Authorities seeking 

to encourage Israeli Arabs who want to conduct business in the region in an effort to help the 

Palestinian economy.

In Sub-Saharan Africa, OPIC continues its focus on supporting private sector growth and 

capital market and infrastructure development and in helping conflict-ridden countries. As 

in 

pan-African companies with exceptional growth prospects and in strengthening African capital 

markets by investing in innovative financial instruments such as mezzanine and convertible debt. 

In FY s 2011 and 2012, OPIC will continue to prioritize the Broader Middle East and 

North Africa, Sub-Saharan Africa, and Asia while continuing to support highly development 

projects in other regions. 
18 | 

In Fiscal Years 2011 and 2012, OPIC will place additional emphasis on clean and 

renewable energy, critical natural resources such as agriculture and water and Impact 

Investing. 

large economic development and foreign policy impact by: 

Applying expertise in clean and renewable energy to provide developing countries with 

more environmentally-cognizant and cleaner options to support development; and 

Mobilizing capital to support critical natural resources including agriculture and water in 

emerging markets, through risk mitigation and investment in infrastructure, services, 

technology, and production. 

Growing the microfinance sector to support financial inclusion and focusing on impact 

investing sectors including agribusiness, education, healthcare, water and sanitation. 

OPIC is a leader in financing renewable and cleaner forms of energy and clean technology. 

energy projects generating a cumulative total of more than 2,200 

megawatts of clean power, including solar, small hydro and wind. Many of these projects 

involve U.S. small businesses. In addition, OPIC supports projects involving the development 

and deployment of clean technologies. 

At the Cancun conference on Climate Change, OPIC announced that it will provide at least $300 

million in financing for new private equity investment funds that in turn could ultimately invest 

more than $1 billion in renewable resources projects in emerging markets. 

Looking ahead, OPIC expects to support more clean energy projects including solar, wind, 

biomass and biofuels, as well as waste-to-energy projects. In early 2008, OPIC established a 

group dedicated to identifying and underwriting renewable energy transactions and other projects 

aimed at sustaining the environment. The group has established relationships with key 

stakeholders in the sector and identified projects most suited to OPIC financing. Since 2007, 

OPIC has committed insurance and financing of $184 million for 282 megawatts across 13 

renewable projects and funds Project commitments include financing for one of 

the first, if not the first, grid-connected solar generation facility in India, green housing 

community in Poland, and a biomass-fueled generation facility in Liberia. 

In Clean and Renewable Energy, OPIC has taken a hands-on approach to project 

development alongside U.S. investors. OPIC is currently tracking about 50 such projects, valued 

at more than $2 billion, to assess whether they can be supported by OPIC risk mitigation and 

financial products. OPIC expects to increase the number of such projects in its finance portfolio 

in each of the next three years. 
 | 19 

As part of this approach, in FY 2010,

 a three day 

international conference in India that was intended to facilitate new U.S. private sector 

investment in renewable energy and clean technology. More than 260 participants from over 26 

countries, representing U.S. and emerging market businesses, leading financial institutions, and 

the governments of the United States and India attended. The conference identified specific 

investment opportunities in the renewable energy and clean technology sectors. Industry leaders 

in clean and renewable technology met with investment professionals, foundation 

representatives, bankers, and private equity managers. U.S. and local government officials 

provided insights into investment opportunities and financing options in the renewable energy 

and clean technology sectors in Africa, Asia, Eastern Europe and Latin America. 

OPIC has increased its focus on critical natural resources such as agriculture, water, and 

food security and plans to expand its activities and initiatives in this sector in Fiscal Years 

2011 and 2012.

The importance of economically viable and sustainable food production is not limited to 

geography. OPIC seeks to support quality companies that grow crops and raise livestock, which 

provide the inputs to make those farms and ranches viable such as water and fertilizers and 

that can get those products to consumers in quite distant markets. OPIC is developing 

transactions at several different scales that will address food production at different points in the 

production process: ranging from seedling production to expansions of bakery operations. 

Some recent examples include: 

In the West Bank

possible for 1,700 small Palestinian olive growers, to sell through informal cooperatives to a 

premium olive oil producer. This producer has created a stable market for those farmers and as a 

result the producer has had to increase its storage capacity. This equipment upgrade will also 

enable the producer to maintain ISO standards, allowing access to foreign export markets. 

In Latin America, Citibank partnered with OPIC to provide a loan to a company that is a top-tier 

vertically-integrated cluster of various companies in Honduras dedicated to the production and 

commercialization of palm oil and its corresponding by-products. Its list of activities are 

extensive, including: palm plantations, palm harvesting, palm oil extraction, processing, sales, 

distribution and marketing of products such as margarine, oil, shortening, soaps, wheat flour, 

sauces, and animal feed. The company is the result of several mergers, but can claim roots to 

Honduran agriculture since 1968. 

In Georgia, a FY 2009 OPIC loan to Sante GMT Products enabled an expanded milk collection 

cheese, milk, and juice products. This included milk collection centers in remote parts of 

Georgia, providing rural farmers a ready market for their milk. These facilities serve 
20 | 

approximately 3,000 rural farmers who previously did not have a steady and reliable market for 

their product. 

In coordination with other U.S. Government Agencies and multilateral organizations, 

OPIC plans to increase its focus on food security globally, and in particular in high priority 

countries in Africa in Fiscal Years 2011 and 2012. 

OPIC Support for Impact Investing

OPIC is committed to catalyzing investments in businesses which seek to generate financial 

returns while having measurable positive impacts on social, economic or environmental 

conditions in OPIC-eligible countries. OPIC can be instrumental in helping to shape the impact 

ng returns and by 

developing innovative and accommodating financial structures that meet the needs of social 

entrepreneurs and their investors. . 

For example, OPIC approved a $10 million loan to Root Capital, a nonprofit social investment 

fund, to lend to small and growing businesses that are too large for micro-loans, but remain 

under-served by commercial banks in Central and South America and Africa. Root provides 

financial education and market connections, in addition to affordable credit, as a means to build 

sustainable livelihoods in an environmentally conscious way. 

In FY 2011 OPIC will launch an Impact Investing Call for Proposals from fund managers 

to catalyze and promote investments in OPIC eligible countries. 
 | 21 

OPIC recognizes that it can better achieve its developmental mandates with greater 

effectiveness and efficiency, if it works in close collaboration with its sister agencies in the 

government. 

OPIC seeks out opportunities for interagency collaboration and to establish channels of 

OPIC-supported private investments can complement policy reforms and social investments 

supported by grant-funded public sector technical assistance provided by the Millennium 

Challenge Corporation (MCC), the U.S. Agency for International Development (USAID), the 

Department of the Treasury, the Department of State, and/or the Trade and Development 

Agency. For example, grant-funded technical assistance for the reform of laws underpinning 

property titles, title insurance, and consumer mortgages help reinforce OPIC-supported private 

investment in the housing sector. 

Private investment supported by OPIC is likewise enhanced through the services provided by the 

Foreign Commercial Service. Similarly, trade agreements negotiated 

by the U.S. Trade Representative remove obstacles to private and OPIC-supported investments 

that build trade capacity and reinforce MCC compacts and complement USAID grants. 

The framework agreements, which were heavily utilized by U.S. partner banks until the financial 

crisis of 2009, have revived as U.S. partner banks return to international lending. Both Citibank 

and Wells Fargo (which purchased Wachovia N.A. in 2009) have resumed their global lending 

operations. OPIC has delegated significant credit authority to these institutions but retains final 

policy and budgetary review of each loan that is made. 

OPIC continues to place a special emphasis on helping American small businesses become 

investors in the developing world. Helping small businesses to invest overseas is an important 

way to distribute the benefits of international commerce more broadly throughout the U.S. 

economy. Small business is a part of nearly every U.S. community. According to the U.S. Small 

Business Administration (SBA), small businesses employ about 50 percent of all private sector 

workers and create 75 percent of the net new jobs in the American economy. 

As a vital source of innovation and economic growth, U.S. small businesses are increasingly 

looking for opportunities in the global marketplace. But for a U.S. small business looking to 
22 | 

engage globally, the obstacles can be formidable: limited access to capital, perceived investment 

risk, and lack of knowledge about opportunities in international markets. 

by reducing the obstacles to investment and by cultivating better small business projects. 

For example, Insurance Department has increasingly focused on supporting U.S. small 

businesses that want protection against political risks as well as the support and advocacy of the 

U.S. government in the event that investment rules change in the targeted country. Insurance 

provides a streamlined application and administrative process for eligible small business 

companies. 

The ideal OPIC-supported small business project is not any different than the largest 

projects the agency supports. A strong and viable OPIC project addresses an important 

developmental need in the host community, transfers capital, technology and skills from a 

successful American company to a nascent industry in an emerging market, and supports the 

same industry here in the United States. It delivers lasting economic effects because it is funded 

not by grant but by investment with the expectation of long-term profitability and job creation. 

New 

Projects

Projects Involving SME

# # % 

2007 139 111 80% 

2008 78 49 62% 

2009 117 89 76% 

2010 97 80 82% 

Figure 3 

Expanding Horizons workshop series helped hundreds of U.S. minority and women 

small business owners to learn how OPIC can help them to invest in emerging markets 

successfully. In all, OPIC has held eleven Expanding Horizons workshops across the country, 

attracting over 1,200 participants from 22 states, as well as over 70 co-sponsoring 

organizations. The invaluable partnerships created from the workshop series have allowed OPIC 

to further outreach to the minority and women-owned business community, participating and 

speaking at events coordinated by organizations such as the Jamaica Business Resource 

Center of New York, the Continental-Africa Chamber of Commerce, and the California Centers 

for International Trade and Development. Recently, OPIC was also pleased to welcome to its 

strategic "Partners Program" the National Association of Women Business Owners 

(NAWBO). 
 | 23 

In June 2007, OPIC launched the Enterprise Development Network (EDN), a strategic alliance 

between OPIC, other U.S. government agencies, and the private sector.8 

to more SMEs doing business in developing countries. Through the support of participating 

financial institutions, business consultants, associations, law firms, state/regional promotion 

organizations, and sister agencies, EDN increases the access of small businesses to OPIC 

products and services. The network results in more efficient, cost-effective delivery of services 

to American and local businesses. 

EDN includes the following participants: 

EDN Originators: business consultants and not-for-profit organizations worldwide, 

trained by OPIC to advise SMEs in drafting business plans, enhancing market strategies 

OPIC Finance and Political Risk Insurance programs. 

EDN Network Investors: 

financial support, but invest in SMEs or their affiliates for projects in OPIC-eligible 

countries. 

EDN Advisors: specialists in particular business sectors and geographic areas, which will 

assist OPIC in credit underwriting and due diligence on OPIC-funded loans. 

Currently 100 organizations collectively covering a broad range of industry sectors now serve as 

EDN Loan/Insurance Originators. They are located in the U.S. as well as in Africa and Asia, 

with several organizations having their own global presence. 

EDN is a springboard for collaboration among USG agencies, multilaterals, NGOs, for-profit 

organizations, and, most importantly, the private sector (investment funds, banks and private 

businesses). EDN does not attempt to replicate an existing activity or program. Rather, it links 

project finance and support with the most effective provider. For example, USAID provided 

OPIC with up to $2 million for the EDN Africa Technical Assistance program (EDN/ATA), 

where qualified SMEs in sub-Saharan Africa can receive technical assistance to develop the 

viability of an underlying project. 

 

8 See https://ednaccess.com/ 
24 | 

: Small and Medium Enterprise 

Finance (SMEF), Structured Finance (SF), and Investment Funds (IFD). 

OPIC financing provides medium- to long-term funding through direct loans and loan guaranties 

to eligible ventures. OPIC can provide financing on a project finance or a corporate finance 

basis. 

SMEF assists small and mid-market companies in developing their overseas businesses, mainly 

by providing direct loans, and SMEF is able to originate investment guaranties as well. SMEF 

officers work on projects in a wide variety of industries. Sectors that receive special emphasis are 

housing, microfinance and renewable energy. 

Structured Finance generally operates with larger guaranties and focuses on projects in highpriority foreign policy areas where neither local nor international private capital markets are 

willing to enter. SF officers typically work on infrastructure projects and financial services 

projects that enable growth in mortgage markets, microfinance, and access to capital for SME 

borrowers. 

is a critically important element to efforts to 

mobilize capital in developing countries. 

business, but OPIC Insurance programs provide the confidence to investors to take the risks 

associated with emerging market investment. In the absence of insurance, entrepreneurs would 

find it difficult, if not impossible, to risk their equity and their credit reputations with financial 

institutions. In the same vein, banks are willing to take risk and lend money into politically 

difficult situations only if they can significantly reduce the risk to their balance sheets through 

comprehensive insurance programs. Coverage is provided for the full range of investors, large 

and small, against a wide variety of risk including inconvertibility, expropriation, loss of 

business income, breach of contract or guarantee, and political violence. 

OPIC Insurance works with the private insurance industry by providing coinsurance and 

reinsurance programs that encourage them to support U.S. businesses interested in making 

investments with a high developmental impact in countries judged too risky on a purely 

commercial basis. As a government agency, OPIC often has better access to information and a 

higher tolerance for risk than the private political risk insurance industry. OPIC Insurance is 

customer focused. In May 2010, OPIC conducted its annual Advisory Group meeting of 

investors, bankers, insurance and legal experts. The Group continues to praise OPIC Insurance 
 | 25 

for its customer-oriented approach to investments in difficult or risky environments. They also 

expressed hope and anticipation that OPIC -

sharing efforts with the private market would soon bear fruit. 

OPIC Insurance has also traditionally played an important role as a product innovator, by 

developing innovative political risk insurance products, such as the first political risk contracts 

for Capital Markets investors investing in emerging market bond offerings, a product later 

adopted by the private political risk industry. OPIC continues to develop new product concepts, 

such as coverage for intellectual property risk. 

Technology Growth

In October 2009, OPIC launched the Global Technology and Innovation Call for Proposals. This 

Board of Directors approved eight funds from this call, representing a potential OPIC 

commitment of up to $675 million and catalyzing up to $3.2 billion in investment. 

Renewables Call 

On December 15, 2010 OPIC launched the Global Renewable Resources Call for Proposals. 

OPIC expects to support one or more investment funds that will invest in sectors focused on 

renewable energy, resource efficiency and the preservation of scarce natural resources. OPIC 

will provide financing between $35 million and $150 million for each selected fund. The Call 

closed on February 11, 2011 with significant interest from the private sector.

Fund Examples 

JS Private Equity Fund II 

OPIC will provide up to $50 million in financing to the fund which will invest in companies in 

Pakistan. The Fund may invest up to 25% of the Fund in other countries in the Middle East, 

North Africa, and South Asia, including Bangladesh, Sri Lanka and Egypt. It intends to employ 

technology in successful companies that either have technology at the core of their business or 

can benefit by upgrading their existing technologies. Sectors of interest to the Fund include 

agribusiness, financial services, transportation and logistics, media and telecommunications, 

chemicals, pharmaceuticals and manufacturing. The fund has a target capitalization of $150 

million. 
26 | 

Siraj Palestine Fund I 

OPIC committed $30 million in financing to the fund, which will make opportunistic 

investments in companies in the Palestinian Territories. The main focus of the fund will be on 

companies that have the potential to become market leaders in the Palestinian Territories or 

expand their operations internationally, primarily in the Middle East and North Africa (MENA) 

region. Sectors of particular interest include information and communication technology services 

(e.g., broad band access), agriculture, clean technology, healthcare, education, and financial 

services. The fund has a target capitalization of $80 million. 

Citadel Capital Joint Investment Fund 

OPIC will provide up to $100 million in financing to the fund, which will target companies that 

benefit from positive macroeconomic trends in the Middle East and North Africa (MENA) such 

as a young and growing population and the need for improvements in infrastructure bottlenecks. 

interest include waste management, transportation and logistics, manufacturing, and production 

of building materials and chemicals. The target capitalization of the fund is $500 million. In 

addition, the Fund manager will co-invest $250.0 million of its own resources alongside the Fund 

on a 1:2 basis. 

Accelerator Tech 

OPIC will provide up to $25 million in financing to the fund, which will target growth stage 

financing to companies across the Middle East and North Africa (MENA) region specifically 

Jordan, Lebanon, Palestine, Egypt, Morocco and Tunisia. The fund expects to invest within the 

general sectors of digital content, internet services, mobile applications, mobile financial 

services, technology services and platforms, next generation media, entertainment and software 

development. The target capital of the fund is $74 million. 

 ePlanet Ventures Fund III 

OPIC will provide up to $75 million in financing to the fund, which will invest in a variety of 

sectors, including information technology, software and software applications, life sciences and 

healthcare, nano and bio-technologies, semiconductors, media, telecom, wireless, Internet 

content and services, clean energy and technologies, education, consumer services, logistics, and 

financial services. The fund will invest in OPIC-eligible countries in the Middle East, Africa, and 

South, Central and Southeast Asia. The target capitalization of the OPIC-guaranteed fund is 

$300 million. 

Riyada Enterprise Development Fund L.P. 

OPIC will provide up to $150 million in financing to the fund, which will primarily make growth 

stage, non-control investments, both directly as well as through individual country sub-funds, in 
 | 27 

region. The target countries for the OPIC-supported investments are Pakistan, Egypt, Turkey, the 

West Bank, Jordan, Lebanon, Oman, Algeria and Morocco. The targeted capitalization of the 

fund is $500 million. 

Capital Alliance Private Equity III Limited 

OPIC will provide up to $150 million in financing to the fund which will focus on 

telecommunications, financial services, business services, logistics, electric power, and oil & gas 

in the West Africa region. The fund plans to take minority (minimum 20%) to majority stakes in 

growth stage portfolio companies, and plans to invest within a range of $20 to $40 million per 

company. The Fund will look for high-growth potential investments in well-performing 

companies, turnaround situations and cross-border expansion opportunities, in all cases with 

proven management teams. The target capitalization is $350 million, with a $500 million cap. 

Lombard Asia IV, L.P. 

OPIC will provide up to $200 million in financing to the fund, which will make growth stage, 

non-control investments in public and private companies that are market leaders within the 

Southeast Asia region, particularly Thailand, Vietnam, the Philippines and Indonesia. The Fund 

will target industries and companies through a macro-economic analysis, including a review of 

consolidation opportunities. The target capitalization is $300 million. 

iscal Years 2011 and 2012 are (1) to commit, close and disburse 

to the pipeline of funds approved by the OPIC Board of Directors in connection with the Calls 

for Proposals conducted over the past three years and (2) to identify and support high quality 

fund managers of funds in OPIC eligible countries having a high development impact identified 

in accordance with the August 2009 Strategic Review for FY 2010 and 2011 prepared by 

Franklin Park, and any subsequent 2012 plan. 

In addition, as recommended in the Strategic Review, OPIC will explore how it can continue to 

streamline and make more effective the fund manager selection process, evaluate changes to the 

current investment funds product in ways that would better serve highly developmental priorities 

and make collaboration with other development finance institutions (DFIs) and OPIC products 

more effective. 
28 | 

The Overseas Private Investment Corporation is authorized to make, without regard to fiscal year 

limitations, as provided by 31 U.S.C. 9104, such expenditures and commitments within the limits 

of funds available to it and in accordance with law as may be necessary: Provided, That the 

amount available for administrative expenses to carry out the credit and insurance programs 

(including an amount for official reception and representation expenses which shall not exceed 

$35,000) shall not exceed $57,890,000: Provided further, That project-specific transaction costs, 

including direct and indirect costs incurred in claims settlements, and other direct costs 

associated with services provided to specific investors or potential investors pursuant to section 

234 of the Foreign Assistance Act of 1961, shall not be considered administrative expenses for 

the purposes of this heading. 

For the cost of direct and guaranteed loans, $31,000,000, as authorized by section 234 of the 

Foreign Assistance Act of 1961, to be derived by transfer from the Overseas Private Investment 

Corporation Non-Credit Account: Provided, That such costs, including the cost of modifying 

such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided 

further, That such sums shall be available for direct loan obligations and loan guaranty 

commitments incurred or made during fiscal years 2012, 2013, and 2014: Provided further, That 

funds so obligated in fiscal year 2012 remain available for disbursement through 2020; funds 

obligated in fiscal year 2013 remain available for disbursement through 2021; funds obligated in 

fiscal year 2014 remain available for disbursement through 2022: Provided further, That 

notwithstanding any other provision of law, the Overseas Private Investment Corporation is 

authorized to undertake any program authorized by title IV of the Foreign Assistance Act of 

1961 in Iraq: Provided further, That funds made available pursuant to the authority of the 

previous proviso shall be subject to the regular notification procedures of the Committees on 

Appropriations. In addition, such sums as may be necessary for administrative expenses to carry 

out the credit program may be derived from amounts available for administrative expenses to 

carry out the credit and insurance programs in the Overseas Private Investment Corporation 

Noncredit Account and merged with said account. 

(Including Transfer of Funds) 

Whenever the Secretary of State determines that it is in furtherance of the purposes of the 

Foreign Assistance Act of 1961, up to a total of $20,000,000 of the funds appropriated under title 

III of this Act may be transferred to and merged with funds appropriated by this Act for the 

Overseas Private Investment Corporation Program Account, to be subject to the terms and 
 | 29 

conditions of that account: Provided, That such funds shall not be available for administrative 

expenses of the Overseas Private Investment Corporation: Provided further, That designated 

funding levels in this Act shall not be transferred pursuant to this section: Provided further, That 

the exercise of such authority shall be subject to the regular notification procedures of the 

Committees on Appropriations. 

Not to exceed 5 percent of any appropriation other than for administrative expenses made 

available for fiscal year 2012, for programs under title II of this Act may be transferred between 

such appropriations for use for any of the purposes, programs, and activities for which the funds 

in such receiving account may be used, but no such appropriation, except as otherwise 

specifically provided, shall be increased by more than 25 percent by any such transfer: Provided, 

That the exercise of such authority shall be subject to the regular notification procedures of the 

Committees on Appropriations. 
30 | 

Table B-1 FY 2012 Request 

Appropriated Resources FY 2010 FY 2011 FY 2012

(Dollars, Millions) Actual (PB 2012) Request 

Gross Budget Authority

Administrative Expenses $ 52.31 $ 52.31 $ 57.89

Credit Subsidy 29 29 31

TOTAL, Gross Appropriations $ 81.31 $ 81.31 $ 88.89

Negative Subsidy, estimated (76) (115.3) (118)

Insurance Premiums and recoveries (41) (39) (39)

Interest on Treasury Securities (200) (180) (162)

Noncredit Obligations 29 35 42

Net Offsets to Budget Authority $ (288) $ (299) $ (277)

Net (Negative) Budget Authority $ (206.7) $ (218.0) $ (188.1)

Memo: Potential Transfer Authority $ 20 $ 20 $ 16

 Anticipated Subsidy Transfer - - $ 4

 Table B-2 Summary of Credit Funding Request 

(Dollars, Millions) 2010 

Actual

2011 

(PB 2012)

2012 

Request 

Credit Subsidy Appropriation $ 29 $ 29 $ 31

Transfers - - -

Total New Resources $ 29 $ 29 $ 31

Projected Activity 

 Finance 2,038 2,050 2,200

 Investment Funds 440 600 900

New Commitments $ 2,479 $ 2,650 $ 3,100
 | 31 

Table B-3 Insurance Program Activities 

(Millions of dollars) 2010 

Actual 

2011 

CR Estimate 

2012 

Projected 

Aggregate Maximum Insured 

Amount 

 Start of year $ 4,516 $ 4,064 $ 3,875

 Issuance during the year 235 553 600

 Reductions/Cancellations (673) (756) (500)

 Outstanding end of year $ 4,078 $ 3,875 $ 3,975

Maximum Contingent Liability 

 Statutory limitation** $ 29,000 $ 29,000 $ 29,000

 End of year 2,330 2,190 2,000

Current exposure to Claims 

(CEC), end of year 

1,619 1,608 1,590

Notes and Definitions

**This is a combined insurance and finance limitation; OPIC monitors issuance and runoff to stay within 

this limitation on an aggregate basis. 

issuance. It reflects the face value of all coverage issued. Premiums are generally computed based on 

this amount. 

Maximum Contingent Liability (MCL): MCL is the basis used to measure the maximum amount of 

compensation for which OPIC would be liable, which is limited by the Foreign Assistance Act. Under 

most active OPIC contracts, investors may obtain all three coverages inconvertibility, expropriation, and 

political violence but aggregate claim payments may not exceed the single highest maximum insured 

amount for each contract. 

Current Exposure to Claims (CEC): Actual exposure to claim payments is less than total outstanding 

insurance as measured by MCL, because insured investors elect "current" coverage levels that reflect the 

current value of their investment, which may be significantly below their maximum insured amount. 

Current exposure to claims is based on the assumption that the coverage under which a claim would be 

brought would be the coverage with the highest amount of current insurance in force. 
32 | 

GPRA PART PERFORMANCE GOALS

 Outputs & Outcomes 

FY 2010

Target Actual 

FY 2011

Target 

FY 2012

Target 

Development 

Effects 

Development 

Matrix score 

Projects Finance Projects 100 83 100 100 

 Insurance Projects 100 91 100 100 

Average 100 86 100 100

Efficiency SBC Cycle Time Insurance 70 60 70 70 

 Finance 70 42 70 70 

Operate in a businesslike manner. 

Improvement Action: Business Systems Replacement 

Plan (BSRP) will improve support of integrated 

business processes and internal controls by replacing 

legacy systems / technology. 

Internal 

Controls 

COOP 

BSRP BSRP 

Risk Mitigation 

and Corporate 

Citizenship 

Maintain or improve monitoring tempo of existing 

development mission and risk of repayment. 

Mitigate risk through sound portfolio management, 

project development practices, and incentives to 

encourage good corporate citizenship. 

Ensure self-monitoring on all active projects. 

Site monitor sensitive projects no later than 3rd year of 

operation. 

% of on-going OPIC Projects monitored for 

and worker rights standards. 

100% 63% 100% 100% 

Additionality Ensure additionality and private sector participation to 

ensure that OPIC leverages, but does not compete 

with, the private sector. 

93% 95% 93% 93% 

Policy priority 

sectors 

(See FY Budget narratives) Broader Middle East Environmental Solutions & Services 

Africa Critical Natural Resources including 

Asia Agriculture & Water 

Impact Investing 

Small Business Ensure that OPIC support is provided to small U.S. 

businesses. Increase Outreach to SMEs; Especially 

those owned by women and minorities. 

Expand Outreach 


 | 35 

OPIC was evaluated under the PART framework in 2006 

improvement across the board on a range of issues. 

OPIC Insurance Program OPIC Finance Program

See 

http://www.whitehouse.gov/omb/expectmor

e/summary/10001169.2006.html 

See

http://www.whitehouse.gov/omb/expectmore/su

mmary/10000388.2006.html 

When it was created in 1971, OPIC was required to operate on a self-sustaining basis at no net 

cost to the American taxpayer. OPIC meets this requirement by charging market-based fees and 

premiums for its loans and insurance. This income enables OPIC to generate more income than it 

spends, and thus build reserves from its own revenue without drawing on the U.S. Treasury. 

OPIC is one of the very few U.S. government agencies that generate a profit for the American 

taxpayer. 

 

Fiscal Year 2012 budget projects that OPIC will contribute $188 million 

to the federal budget.1

OPIC has contributed significant sums toward reducing the federal deficit for 33 

consecutive years. In FY 2010, OPIC contributed $352 million to deficit reduction.2 

Over 

generate $1.3 billion.3

Separately, the annual financial statements confirm that 

OPIC generated $397 million in revenue and $260 million in net income in FY 2010. 

This compares favorably to FY 2009, when OPIC generated $389 million in revenue and 

$242 million in income. 

 exceed $5 billion in Treasury securities, generated through net 

earnings. 

Since its creation in 1971, OPIC has supported over $74 billion in U.S. exports and more 

than 274,000 U.S. jobs, with many times this number indirectly supported by OPIC 

programs. 

bilizes the 

participation of U.S. private capital to support sustainable economic development in emerging 

markets. OPIC currently manages a $14 billion portfolio of projects in more than 150 countries. 

By leveraging economically sound projects and charging market-based fees, OPIC catalyzes but 

does not compete with the private sector. 

 

http://fms.treas.gov/mts/mts0910.pdf#page=15
OPIC Budget Data 

Appropriations and Outlays 

FY 2006-FY 2012 

(Dollars, Millions) 2006 2007 2008 2009 2010 2011 2012

Actual PB 

2012 

Request

 

Appropriations

Subsidy $ 20.1 $ 20.1 $ 23.0 $ 29.0 $ 29.0 $ 29.0 *$ 31.0

Administrative 

Expenses 

41.9 42.1 47.5 50.6 52.3 52.3 57.9

Outlays (Discretionary and Mandatory) **

Non-credit account $ (323) $ (292) $ (296) $ (282) $ (271) $ (250) $ (236)

Negative subsidy (33) (38) (47) (47) (76) (115) (118)

Gross Outlays 46 (86) (343) 17 (5) 71 116 

Net Outlays $ (310) $ (416) $ (686) $ (312) $ (352) $ (294) $ (238)

*

** 

: