OVERSEAS PRIVATE 

INVESTMENT CORPORATION

Annual Report 

On Development Impact

FISCAL YEAR 2017

SUBMITTED PURSUANT TO 

SECTION 240A OF THE

FOREIGN ASSISTANCE ACT OF 1961, AS AMENDED

 October 2018

Appendix 1 U.S. Employment and Associated Effects and Project Location

Appendix 2 Destination of Sales to Third Party Markets

Appendix 3 U.S. Employment Effects and Project Location

Appendix 4 Methodology for Calculating U.S. Employment Effects

Appendix 5 OPIC’s Development Matrix

Appendix 6 Country Eligibility

Appendix 7 OPIC’s Greenhouse Gas Policy and Current Inventory

Appendix 8 OPIC GHG Emissions Inventory Estimate by Project

Appendix 9 OPIC’s Site-Monitoring Methodology

Appendix 10 Projects Site Monitored in FY17

Appendix 11 Projects Site Monitored for Development Impact FY17

Appendix 12 Projects Monitored for Environmental/Social Impact in FY17

OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 3 | TABLE OF CONTENTS






OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 10 | OPIC STRENGTHENS

OPIC Catalyzes Capital

OPIC, the U.S. government’s development finance institution, mobilizes private capital to address 

major world challenges and support the development and expansion of market economies through 

the provision of financing, political risk insurance and support for emerging market private equity. 

OPIC is committed to private sector investment as a driving force for development and has an 

appreciation for the importance of drawing private capital into developing and emerging markets.

As in previous years, OPIC’s financing is expected to accelerate private sector financial 

investment from both host country and U.S. Investors. In FY17, it is anticipated that OPIC 

projects will support nearly $10.6 billion in capital investment. Of that amount, $8.2 billion will come 

from the private sector. The remaining $2.4 billion represent investments between OPIC 

($1.9 billion) and other international development institutions and public entities ($500 million).

IN FY17, OPIC COMMITTED TO 112 NEW PROJECTS IN 39 COUNTRIES. THESE PROJECTS 

ARE ESTIMATED TO RESULT IN $10.6 BILLION IN TOTAL CAPITAL INVESTMENT IN 

DEVELOPING AND EMERGING MARKETS.


*

*

*

*

*

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

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 14 | ADVANCING INTERESTS

Women’s Economic Empowerment

Enhancing the Role of Women in 

Developing Economies

In 2017, OPIC launched its global women’s empowerment initiative, branded as “2X”. The initiative 

builds on OPIC’s strong track record of supporting women in emerging markets, primarily through 

micro-finance. 2X calls on the agency to use all of its financial tools to 

economically empower women in emerging markets. 2X commits OPIC to mobilize more than $1 

billion in capital to invest in the world’s women and for the first-time, calls on OPIC investment 

officers to apply a gender lens to our existing investment strategy to ensure that every dollar 

OPIC invests contributes to gender equitable change. 

OPIC has made empowering women a priority because it recognizes that women are key drivers 

to advancing both economic prosperity and global stability—the hallmarks of every transaction 

OPIC underwrites. With respect to economic prosperity, women represent an emerging market 

twice the size of India and China combined. In emerging markets today, women own 30% of 

small and medium enterprises, yet worldwide women face a $320 billion shortfall in access to 

credit. Women face gaps in labor force participation ranging from 12% in non-OECD countries to 

50% in the Middle East and North Africa. When women do participate, it is typically in low-paying, 

low-status jobs. By providing more equal access to capital and including women more equally in 

the workforce, women can unlock a massive potential for economic growth in developing 

economies.

With respect to global stability, we know that when women in emerging markets earn a competitive income, they spend 

90% of it on their families, 

their children’s education, 

and their aging parent’s 

healthcare. By comparison, men spend between 

30-40%. To tackle our most

pressing challenges—from

gender based violence and

human trafficking, to education and healthcare—the

most effective thing we can

do is empower women.

“OPIC has prioritized investing in women because 

we understand that when women succeed, families 

succeed, communities succeed, and nations succeed. 

By launching 2X, committing to mobilize $1 billion 

and adding a gender lens to our existing investment 

strategy, we are sending a powerful message to the 

markets that by investing in women we can change 

the world.”

- KATHRYN KAUFMAN MANAGING DIRECTOR FOR

GLOBAL WOMEN’S ISSUES
ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 15 | ADVANCING INTERESTS

OVERSEAS PRIVATE INVESTMENT CORPORATION

As a start, following the 2X launch in 2017, OPIC committed financing to projects supporting lending to women from India to Costa Rica. For example, OPIC committed $225 million to India’s 

IndusInd Bank to support the expansion of the bank’s micro, small, and medium lending 

programs across India, with at least a quarter of the facility targeting female entrepreneurs. In 

Costa Rica, OPIC committed $65 million in financing to Banco BAC San José, S.A. with 20% of the 

OPIC loan going directly to female borrowers and a commitment from BAC to make institutional 

changes to be more inclusive going forward.

With the launch of 2X, OPIC has confirmed its commitment to providing women in the 

developing world access to finance, quality employment, and products and services that enhance 

economic opportunity. As a Development Finance Institution, OPIC invests to support private 

sector growth in the places where it is most needed. Our ability to mobilize capital and 

partnerships is a cornerstone of the 2X initiative. OPIC will scale our efforts to empower women 

by engaging our private sector clients and collaborating with global stakeholders to mobilize as 

much capital as possible to empower women around the world.
OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 16 | OPIC U.S. BENEFITS

Supported Projects Benefit the U.S. 

Economy

While OPIC support primarily facilitates economic growth and job creation in the host countries, as 

noted above, many projects also have a positive impact on the U.S. economy. As a self-sustaining 

U.S. Government agency, OPIC operates at no net cost to American taxpayers and has generated 

money for U.S. deficit reduction for the past 40 years. OPIC supported private sector projects often 

lead to procurement of U.S. goods and services and help American businesses access some of the 

world’s fastest growing markets.

OPIC carefully screens each new project to ensure that it does not have a negative effect on the 

U.S. economy. No project in FY17 expects to have a negative impact on U.S. jobs.

Table 2 describes the projected U.S. economic benefits of OPIC’s FY17 projects. Of these projects, 

nine will have a positive impact on U.S. jobs. The remaining 103 will likely have a neutral impact. 

OPIC creates opportunities for entrepreneurs and small businesses1

 to open new markets or 

expand their operations overseas. In FY17, over 80%2 of all committed projects involved a small US 

business as a sponsor.

Projects committed in FY17 supported jobs at small businesses in eleven states and the District of 

Columbia. Procurement is expected to be nearly $128 million in goods and services over the next 

five years from U.S. small businesses alone3

.

Over the last eight years, OPIC has committed over $12 billion in finance and insurance projects to 

almost 600 new projects that involve U.S. small businesses.

1 OPIC DEFINES SMALL BUSINESS AS COMPANIES WITH $500 MILLION OR LESS IN REVENUE AND/OR 500 OR FEWER

EMPLOYEES. OPIC ALSO INCLUDES PORTFOLIO INVESTMENTS BY OPIC-SUPPORTED INVESTMENT FUNDS THAT

QUALIFY AS A U.S. SMALL BUSINESS.

2 88% OF PROJECTS REPRESENTED SMALL BUSINESSES. INCLUDING PORTFOLIO COMPANIES WHICH ARE COUNTED AS

U.S. SMALL BUSINESS PROJECTS

3 THIS DATA REPRESENTS FROM PROCUREMENT FROM SMALL BUSINESSES ONLY WHICH IS A SUBSET OF THE LARGER

PROJECTED PROCUREMENT OF 3.O BILLION
ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 17 | OPIC U.S. BENEFITS

OVERSEAS PRIVATE INVESTMENT CORPORATION

Table 2:

Projected U.S. Economic Benefits of FY17 Projects

Total project investment

U.S. investment in projects

U.S. % of total

U.S. exports*

Initial procurement

Operational procurement*

U.S. jobs supported*

$10.57 billion

$5.38 billion

50.9%

$3.10 billion

$1.94 billion

$1.16 billion

3,498

*TOTAL AMOUNT OVER A 5 YEAR PERIOD

N=112 SOURCE FY17 PROJECT COUNT

OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 19 | OPIC U.S. BENEFITS

1

TRANSACTION APPROVED AND COMMITTED BY OPIC; 

FOREIGN GOVERNMENT APPROVAL IS PENDING

Noble’s Leviathan: Driving Energy 

Independence & Expanding Markets

Fifteen years ago, Israel relied on imports of 

oil, coal, and natural gas to meet its energy 

needs. That changed when Israel discovered 

natural gas off its coast in 2009 and 2010. The 

discovery of natural gas necessitated significant 

investment from Noble Energy and its partners 

to develop the fields and create related facilities. 

The investment represents the largest 

infrastructure investment in Israel’s history.

Jordan faced a similar challenge when Jordan’s 

National Electric Power Company sought a

reliable energy source following the suspension 

of gas supplies from Egypt in 2012.

OPIC: Key to Regional 

Energy Security

Quick Facts

⊲ Population: 8 million

⊲ GDP per capita: $42,000

⊲ Forecast GDP growth rate: 3.1%

⊲ Unemployment Rate: 4.3%

OPIC committed to provide up to $250 

million in political risk insurance for two 

related investments. The OPIC political 

insurance covers Noble Energy’s equity 

investment in the development of the 

Leviathan Field, an offshore gas field that will 

produce gas for Israel and neighboring 

countries1

. Among those neighbors is 

Jordan, a country with tremendous energy insecurity.

OPIC is also providing political risk insurance 

for the delivery of natural gas to Jordan’s 

National Electric Power Company (NEPCO), 

the Jordanian state-owned utility responsible 

for procuring fuel for Jordan’s power plant 

operations. This will enhance Jordan’s ability 

to deliver power to its citizens.

Transforming Energy with 

the Help of US Technology

While the Leviathan field development will 

help transform Israel from an energy 

importer to a net exporter and enable 

Jordan to meet its energy demand, the 

project also provides secondary benefits to 

the US economy.

One notable example of a U.S. firm involved 

in this project is Gulfex Holdings based in 

South Houston, Texas. Gulfex is a 52-yearold company that provides a full range of 

engineering, design and fabrication services 

to the oil, gas and petrochemical industries.
OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 20 | SOCIAL

Social Assessment: Labor and Human 

Rights

Project Screening and Assessment for 

Social Risk

OPIC implements polices consistent with its statutory requirements related to social risk 

identification and management, including respect for human rights and the rights of workers. 

OPIC screens all potential projects to identify labor-related and human rights impacts to 

determine eligibility1

. Some projects are not eligible for OPIC support because they are in 

categorically prohibited sectors2. Potential projects undergo a full review for social risks.

Some projects may be classified as Special Consideration. In FY17, none of the potential projects 

reviewed were determined to be categorically prohibited on labor-related grounds or classified 

as Special Consideration. 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 social risks, including labor or human rights violations. As part of the update to 

OPIC’s Environmental and Social Policy Statement, the designation for Special Consideration

expanded to include heightened potential for adverse project-related risks to the workforce as 

well as potentially affected people. Projects with significant adverse social impacts or those 

under consideration in regions with recent conflicts, compromised regulatory systems, or the 

presence of vulnerable groups such as large numbers of contracted workers or Indigenous 

Peoples, may qualify as Special Consideration.

OPIC subjects every potential project to a human rights review process that ensures all 

OPIC-supported projects meet the statutory requirements of the Foreign Assistance Act. OPIC 

consults with the U.S. Department of State Bureau for Democracy, Human Rights, and Labor (DRL) 

on this review to ensure consistency between OPIC and DRL regarding relevant human rights 

matters in OPIC-eligible countries.

1 COUNTRY ELIGIBILITY FOR OPIC-SUPPORTED PROJECTS BASED ON LABOR-RELATED STATUTORY OBLIGATIONS IS

FOUND IN APPENDIX 6 AND IN CHAPTER 9 OF THE OPIC ENVIRONMENTAL AND SOCIAL POLICY STATEMENT, 

AVAILABLE ON OPIC’S WEBSITE.

2 CATEGORICALLY PROHIBITED PROJECTS HAVE POTENTIAL ENVIRONMENTAL OR SOCIAL IMPACTS THAT PRECLUDE

THE PROJECTS FROM RECEIVING OPIC SUPPORT. THEY ARE LISTED IN APPENDIX B OF THE OPIC ENVIRONMENTAL

AND SOCIAL POLICY STATEMENT, AVAILABLE ON OPIC’S WEBSITE
OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 21 | SOCIAL

OPIC Uses a Rigorous Methodology to

Assess Potential Social Risks

OPIC uses its social assessment to evaluate the potential risk to workers at the project site or to 

other people or groups potentially impacted by project activities. OPIC identifies the means to 

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

process is as follows:

● Identification of potential risks to project-affected people, including individuals,

workers, groups, or local communities

● Comparison of the project’s expected performance in relation to

internationally-accepted standards and practices

● Evaluation or design of project requirements necessary to enable OPIC support

● Evaluation or design of associated management and monitoring measures

Transaction Rejected On Labor

Rights/Human Rights Grounds

OPIC works diligently to ensure that its policies regarding social risks, including those 

concerning labor rights and human rights, are well understood. Before formal applications are 

submitted, OPIC advises potential clients on projects that may be problematic from a social perspective. As a result, in FY17, OPIC did not have to reject any applications for finance or insurance on 

social grounds.
OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 22 | ENVIRONMENTAL

Environmental, Health, and Safety

Project Screening and Assessment

OPIC screens all potential projects to identify the risk of adverse environmental, health, and 

safety impacts, and to identify project impacts that could preclude OPIC support. For a project 

determined to be categorically ineligible1

 on environmental grounds, OPIC immediately informs 

the applicant to avoid unnecessary effort or expense on their part. If the project is eligible, OPIC 

categorizes the project to determine the requirements for documentation, disclosure, 

consultation, reporting and post-commitment monitoring. Projects may be categorized as A, B, C, 

or D depending on their potential risks and impacts.

Category A projects present the greatest potential for adverse environmental and/or social 

impacts, whereas Category C projects represent the least potential for adverse impact. 

Category D is reserved for certain projects involving financial intermediaries that take 

investments in or provide financing to projects or enterprises engaged in activities within 

categories A, B or C (“sub-projects”). OPIC screens, reviews, and provides prior written consent 

to sub-projects based on potential environmental and social risks. The figure on the next page 

illustrates the screening of projects approved in FY17.

1 CERTAIN CATEGORIES OF PROJECTS HAVE POTENTIAL ADVERSE ENVIRONMENTAL OR SOCIAL IMPACTS THAT

PRECLUDE THE PROJECT FROM RECEIVING OPIC’S SUPPORT. PROJECTS IN THESE PROHIBITED CATEGORIES ARE

LISTED IN APPENDIX B OF OPIC’S ENVIRONMENTAL AND SOCIAL POLICY STATEMENT
*

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

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 24 | ENVIRONMENTAL

Transaction Rejected on Environmental, 

Health, or Safety Grounds

OPIC works diligently to ensure that its policies regarding environmental, health and safety are 

well understood upfront.

1. Before formal applications are submitted, OPIC endeavors to advise clients regarding

project plans that could be problematic from an environmental, health or safety

perspective.

2. In some cases, clients are able to modify projects to mitigate risks appropriately.

3. In other cases, they may withdraw the request for OPIC support.

As a result, OPIC did not reject any application for finance or insurance in FY17 on environmental, 

health or safety grounds.

Green House Gas Reporting

Pursuant to P.L 111-117 Sec 7079(b) (12/16/2009) (Consolidated Appropriations Act. 2010) OPIC 

collects data on the Greenhouse Gas emissions. Under P.L. 111-117, OPIC is required to:

1. Reduce 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 20, 2008 as a baseline),

a. by 30% over a ten-year period

b. by 50% over a 15-year period

2. Make a substantial commitment to invest in renewable and other clean energy

technologies.

Since FY08, the aggregate direct GHG emissions associated with projects in OPIC’s active 

portfolio decreased by approximately 41.56 million short tons of CO2e from 49.77 million short 

tons of CO2e in FY08 to approximately 8.21 million short tons in FY17. This represents an 83.5% 

reduction in portfolio emissions1

. “Direct emissions” are defined as the result of the combustion of 

fuel by OPIC-supported projects.

1 IN THE FY14 ANNUAL GHG REPORT, OPIC CORRECTED ITS FY08 BASELINE TO REMOVE GHG EMISSIONS THAT WERE

EARMARKED FOR THE LATIN AMERICA POWER (LP) III FUND. IN FY14, 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 FY08-13 INVENTORIES (INCLUDING THE FY08 BASELINE).

ADDITIONAL DETAILS ON THE FY16 GHG REPORT ARE AVAILABLE IN APPENDIX 7.
OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 25 | COMPLIANCE

Compliance with OPIC 

Conditions and Covenants

♦ Social assessment monitoring activities focused on 20 projects with the potential for greatest

social risk. During site monitoring, all 20 projects met material compliance with OPIC covenants 

and conditions regarding social and labor risks.

♦ The Environmental group focused on projects with the greatest environmental, health or

safety risk. The environmental group monitored 23 projects in FY17. Seven of these projects were 

Category A, fifteen were Category B, and only one Category C monitored in FY17. All projects met 

material compliance with OPIC covenants and conditions pertaining to environmental 

considerations.
Appendix 1

Appendix 2 

Appendix 3 

Appendix 4 

Appendix 5 

Appendix 6 

Appendix 7 

Appendix 8 

Appendix 9 

Appendix 10 

Appendix 11 

Appendix 12 

U.S. Employment and Associated Effects and Project Location

Destination of Sales to Third Party Markets

U.S. Employment Effects and Project Location

Methodology for Calculating U.S. Employment Effects

OPIC’s Development Matrix

Country Eligibility

OPIC’s Greenhouse Gas (GHG) Policy and Current Inventory

OPIC GHG Emissions Inventory Estimate by Project

OPIC’s Site-Monitoring Methodology

Projects Site-Monitored in FY17

Projects Site-Monitored for Development Impact FY17

Projects Monitored for Environmental/Social Impact in FY17

OVERSEAS PRIVATE INVESTMENT CORPORATION

ANNUAL REPORT ON DEVELOPMENT IMPACT FISCAL YEAR 2017 26 | APPENDIX


Appendix3

 3: U.S. Employment Effects and Project Location 

In FY17, OPIC supported 112 new projects in 39 countries and five regions. These 112 projects include four projects located in multiple regions*. 

Of the 112 new projects committed in FY17, nine expect to have positive impact on U.S. jobs: 

 One in finance and insurance: Sri Lanka

 Two projects in real estate and rental and leasing: Columbia and Africa Regional

 One in utilities: Honduras

 Five in other*: Ukraine, Israel, Tanzania, Zambia

Of the 112 new projects committed in FY17, 103 expect to have neutral impact on U.S. jobs: 

 Thirty-one in construction: Brazil, Colombia, Mexico, Panama, Peru, Nigeria, South Africa

 Thirty in finance and insurance: Africa Regional, All OPIC countries, Asia Regional, Cambodia, Colombia, Costa Rica, Egypt, El Salvador, India, Lebanon, Liberia, Mexico,

Mongolia, Myanmar, Nicaragua, Panama, South Africa, Ukraine and West Bank

 Nine in health care: Cameroon, Ethiopia India, Kenya, Nigeria and Pakistan,

 Eight in manufacturing: Botswana, India, Tajikistan and Turkey

 Nine in real estate and rental and leasing: Mexico, Mongolia, Nigeria, South Africa and Uganda

 Eleven in utilities: El Salvador, Guinea, India, Jamaica, Jordan, Senegal, Uganda and Zambia

 Five in other*: Bulgaria, Cambodia, Kenya, Mongolia and Ukraine

Of the 112 new projects committed in FY17, zero will have a negative impact on U.S. jobs. The 112 new projects committed in FY17 were in the following geographic 

regions: 

 Thirty-one in Sub-Saharan Africa: three with positive U.S. job impact and twenty-eight with neutral U.S. job impact

 Forty-five in Latin America: two with positive U.S. job impact and forty-three with neutral U.S. job impact

 Nineteen in Asia: one with positive U.S. job impact and eighteen with neutral U.S. job impact

 Five in the Middle East & North Africa: one with positive U.S. job impact and four with neutral U.S. job impact

 Eight in Europe & Eurasia: two with positive U.S. job impact and six with neutral U.S. job impact

 Four in multiple regions: all with neutral U.S. job impact

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

3Appendix notes:

- Other: Includes Administration and Support and Waste Management and Remediation Services, Educational Services, Agriculture, Forestry, Fishing & Hunting, Retail Trade, Mining, Quarrying, and Oil 

and Gas extraction. Please note that Other includes Noble Leviathan. This transaction was approved and committed by OPIC; foreign government approval is pending 

- "Positive" effect on U.S. employment includes projects with more than two jobs (greater than ten person-years of employment during the first five years of project operation).

- "Neutral" effect on U.S. employment includes projects with two or fewer jobs (ten person-years or fewer of employment during the first five years of project operation).

- In FY17, 112 new OPIC-supported projects were classified using the North American Industry Classification System (NAICS). 

No projects supported in FY17 will result in the loss of U.S. employment.
Appendix 4: Methodology for Calculating U.S. Employment Effects 

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 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. 
Appendix 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: 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 populations will be

targeted by the financial institution.

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

any philanthropic activities that benefit the local community.

 Job Creation and Human Capacity Building: 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: 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: 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.

Appendix 7: 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.5

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 includes 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.6 By accounting for these sources, OPIC is 

consistent with the GHG accounting methodology of The Climate Registry.7 

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 FY16 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. 

5 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. 

6 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). 

Starting in FY 2015, OPIC updated this methodology so that the buffer again represents 5% of the total estimated emissions from 

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

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

2015 GHG report. 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). 

7 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.

Appendix 9: OPIC’s Site-Monitoring Methodology 

Environment, Social, Health, and Safety; U.S. Economic Impact, 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, environment, social, labor, health and safety issues; and (3) 

projects that fit in logistically with randomly selected or sensitive projects. 

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. Engagement with members of the project workforce and 

representatives of nearby communities is carried out where relevant. Certain areas of human or 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 contract specialists to perform a full project audit. 

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, a one-to-one 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. 
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*Information has temporarily been redacted, including to protect the safety of implementing partners.
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*Information has temporarily been redacted, including to protect the safety of implementing partners.
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*Information has temporarily been redacted, including to protect the safety of implementing partners.
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*Information has temporarily been redacted, including to protect the safety of implementing partners.