Congressional

Budget 

Justification

Fiscal Year 

2015

Overseas Private Investment 

Corporation
This Page Intentionally Left Blank 
Table of Contents 

Table of Contents ....................................................................................................................... ii

President’s Letter ........................................................................................................................1

FY 2015 Budget in Brief .............................................................................................................4

Administrative Resources Generate Revenues .........................................................................4

Funding for Limited Partner Authority ....................................................................................5

OPIC’s Mission supports both Domestic and Foreign Policy ...................................................5

FY 2015 Budget Request ............................................................................................................6

Limited Partner (LP) Authority ...............................................................................................7

OPIC is Self-Sustaining ...........................................................................................................7

Administrative Resources Directly Drive Program and Revenue .............................................8

Strategic Investment in Technology .........................................................................................9

Systems Life Cycle and Mandates ...................................................................................9

Mission and Operation Support...................................................................................... 10

Customer Facing Innovation .......................................................................................... 10

OPIC’s Value to the Budget and Foreign Policy ........................................................................ 11

OPIC Supports National Security and Foreign Policy ............................................................ 11

Cross Cutting Initiatives ................................................................................................ 12

Power Africa ................................................................................................................. 13

Supporting the Middle East and North Africa in the Wake of the Arab Spring ............... 14

OPIC Assists U.S. Businesses, including Small Businesses ................................................... 15

OPIC is Effective and Selective ............................................................................................. 16

Foreign Direct Investment Flows Outweigh ODA.......................................................... 17

OPIC as a Resource Multiplier .............................................................................................. 18

OPIC is Efficient ................................................................................................................... 19

OPIC Addresses Key Challenges ........................................................................................... 21

Renewable Resources and the Global Climate Change Initiative (GCCI) .............................. 21

Innovative Products ....................................................................................................... 22

Recent Commitments .................................................................................................... 22

U.S.-Africa Clean Energy Finance Initiative (U.S. -ACEF) ................................................... 23

U.S.‐Asia‐Pacific Comprehensive Energy Partnership (U.S.-ACEP) ..................................... 23

Appendices ............................................................................................................................... 25

Appendix A: Proposed Legislation ........................................................................................ 25

Reauthorization Legislation .................................................................................................. 25

Extension of OPIC Authority ......................................................................................... 25

Waiver of Requirement to Reauthorize .......................................................................... 25

Appropriations Legislation .................................................................................................... 25

Noncredit Account......................................................................................................... 25

Program Account ........................................................................................................... 26

Transfer Authorities (General Provisions) ...................................................................... 26

Export Financing Transfer Authorities ........................................................................... 26

Appendix B: Measuring Development Impact Matrix ............................................................ 27

Appendix C: OPIC Policy Monitoring Methodology ............................................................. 28

Appendix D: OPIC Activity in Selected Countries and Regions ............................................ 30

Middle East and North Africa (MENA) ......................................................................... 30
Pakistan ......................................................................................................................... 32

Iraq ................................................................................................................................ 34

Haiti .............................................................................................................................. 35

Sub-Saharan Africa ....................................................................................................... 36

Central America ............................................................................................................ 38

Appendix E: Presidential Policy Directive on Development ................................................. 39

Appendix F: The Partnership for Growth .............................................................................. 40

Appendix G: GPRA Annual Performance Plan/Report ......................................................... 41

Figure 1 Annual and Cumulative Negative Outlays 1971 to 2013 (OMB, Treasury) ....................8

Figure 2 OPIC projects with U.S. Small Businesses .................................................................. 15

Figure 3 OPIC Project Lifecycle ............................................................................................... 16

Figure 4 FDI versus Overseas Development Assistance (UNCTAD, OECD DAC) ................... 17

Figure 5 Cumulative OPIC Resource Mobilization 1974-2013 .................................................. 18

Figure 6 Renewable resources and energy commitments ........................................................... 21
President’s Letter 

As the U.S. Government’s development finance institution, OPIC’s mandate is to mobilize 

private investment into sustainable economic development. Since OPIC was created from the 

U.S. Agency for International Development 40 years ago, we have accomplished this mission by 

providing loans, guarantees and insurance to thousands of U.S. companies and investors in 

emerging markets. We do so in a self-sustaining manner, having returned money to the U.S. 

Treasury for 37 consecutive years. 

Since OPIC’s creation, the private sector has rapidly emerged as the central player in 

international development. The financial flows from the U.S. to developing countries are 

predominately from private capital, whereas only 40 years ago they were predominately 

development assistance. During a time of tight budgets, using scarce public dollars to generate 

private investment to achieve goals is both efficient and effective. With OPIC, the private sector 

becomes a nimble, tangible foreign policy tool. 

Unique among U.S. development agencies, OPIC works primarily with the private sector. OPIC 

staff are bankers and technical specialists with deep expertise in project finance, insurance and 

investment funds. They have successful track records in structuring and mitigating the risks of 

complex, difficult, long term deals. Over the last several years, we have strengthened our 

partnerships with other U.S. Government agencies, such as USAID, the State Department and 

the U.S. Trade and Development Agency. These partnerships have shown excellent results, 

successfully pairing our private sector expertise and instruments with their complementary 

assistance, grant and diplomatic strengths. 

OPIC’s development impact and financial track-record has been tested and proven through 

numerous economic cycles and emerging market crises. We have consistently helped reduce the 

Federal deficit, while generating significant reserves. We focus on “crowding-in” private 

investment, financing projects that are too risky for purely commercial banks, while generating 

very low write-offs and losses that most of those commercial banks would envy (OPIC’s writeoffs, net of recoveries, were consistently less than 1 percent in each of the past 5 years). Our 

clients range from large U.S. companies to NGOs, to individual investors; but the vast majority 

of our work involves U.S. small and medium enterprises (approximately three quarters of our 

transactions). 

OPIC’s business model is highly scalable, yet our administrative budget supports a current staff 

of only 230 people. In an increasingly competitive global market, it is challenging to provide a 

level playing field for U.S. businesses when OPIC is a fraction of the size of our European and 

Asian peer Development Finance Institutions (DFIs). For example, even the Dutch and German 

equivalents have twice the staff of OPIC, while managing a portfolio that is half the size of 

OPIC’s. As a result, demand for OPIC services from worthy U.S. businesses far outstrips our 

ability to respond; yet the benefit to the U.S. taxpayer of OPIC’s administrative budget is very 

high. For every dollar invested in OPIC’s administrative budget in 2013, OPIC produced nearly 

$8 in revenue for the U.S. taxpayer. 
2 

Hence we see that OPIC’s potential impact is constrained not by capital availability (we have a 

current portfolio of approximately $18 billion with a statutory maximum of $29 billion) but by 

the administrative resources necessary to prudently originate, underwrite, close, manage, and 

monitor an increase in transaction volume. 

In FY 2013, OPIC increased its annual commitments by nearly 10 percent from the previous 

year, to $3.9 billion. Given the time it takes for transactions to evolve, most of that growth came 

from projects developed over previous years. Without additional resources, our growth rate will 

slow or reverse, as will our ability to meet the needs of U.S. companies overseas and create 

development impact. 

OPIC’s budget request for FY 2015 is designed to support a larger portfolio and expand OPIC’s 

institutional capabilities, impact, and revenue generation. With the fulfillment of our FY 2015 

budget request, OPIC will be able to continue its contributions to Federal budget collections, 

which have amounted to over $1.6 billion over the last five years. 

Africa 

Nowhere is the value of OPIC’s work clearer or more central to the Administration’s priorities 

than in Africa. Last summer, I had the privilege of accompanying the President to Africa as part 

of the announcement of Power Africa, an ambitious initiative to significantly increase U.S. 

private investment into the continent’s power sector. Under the initiative, OPIC has committed to 

providing $1.5 billion in lending and insurance over the next five years to Sub-Saharan Africa. 

OPIC’s private-sector mission, mandate, and skill-set will be critical to the initiative’s success. 

OPIC has deep experience in the power sector, having financed over $24 billion in power 

transactions in oil, gas, solar, wind, biomass and geothermal energy. In renewable energy 

specifically, OPIC’s portfolio has grown one-hundred fold under the Obama administration – 

from $10 million to over $1 billion in 2012 and 2013. 

At the same time, OPIC’s commitment to Africa across all sectors has grown significantly under 

this Administration. Africa currently comprises nearly a quarter of our total portfolio, up from 

only six percent in the 1990s. The amount OPIC has committed to Africa in the past four years 

exceeds that of the previous eight years combined. Last year, OPIC opened our first and only 

overseas office – in Johannesburg, South Africa. 

Policy Program 

Beyond Africa, this budget proposal supports OPIC’s important role in delivering on key public 

policy priorities. The requested resource level will enhance OPIC’s ability to: 

 Support U.S. Foreign Policy – OPIC is an early responder to foreign policy priority 

situations, financing the private investment that creates critical jobs and opportunities, 

and with them, stability. 
3 

 Expand clean and renewable energy in emerging markets – OPIC supports U.S. 

business tapping this fast-growing market and answering the urgent call for climate 

finance in emerging markets. 

 Prudently underwrite and manage OPIC’s complex and growing portfolio – OPIC has 

built a proven, successful, and highly scalable model. Expanding its work will require 

investments in risk management systems, IT, security, and oversight. 

This budget request also proposes a program for equity investment. OPIC envisions using this 

program and its 25 years of experience in selecting fund managers to invest as a Limited Partner 

(“LP”) in privately managed funds targeting companies in OPIC-eligible countries. Although no 

new legislation is required, the program must be explicitly funded in the budget. Among our 

peer development finance institutions in the G7 and beyond, OPIC is unique in lacking an equity 

capability. This significantly undermines our ability to offer U.S. companies and investors the 

support they need to compete with other actors in important new markets, and deters OPIC 

ability to share risk among multilateral lenders and development finance institutions. It also 

limits the types of funds and projects we can support, limiting our developmental impact. We 

plan to focus this program on limited and selective investments in the Middle East and North 

Africa, Sub Sahara Africa and Asia, with particular emphasis in the renewable energy or 

renewable resource (water, agriculture, forestry, etc.) sectors or with small and medium-sized 

enterprises (SMEs). 

Thank you for your continued support of OPIC’s highly efficient and effective model of 

advancing U.S. foreign policy and development goals while supporting U.S. business and 

generating returns for the U.S. taxpayer. In addition to investment dollars, I believe that U.S. 

businesses are our nation’s most powerful foreign policy tool – ambassadors that project the best 

of American values, innovation, and goodwill. I hope that you will continue to enable us to grow 

and develop OPIC’s role addressing these crucial needs in an ever more complex and global 

world. 

Best, 

Elizabeth L. Littlefield 

President and CEO 
4 

FY 2015 Budget in Brief 

As the U.S. Government’s development finance institution, OPIC mobilizes private capital to 

help solve critical development challenges and in doing so, advances and supports U.S. foreign 

policy. OPIC provides financing, guarantees, political risk insurance, and support for private 

equity investment funds. OPIC achieves its mission, at no cost to the Treasury or the taxpayer, 

through risk management, fees, and interest charged to investors. OPIC is among very few 

Federal programs which reliably reduces the deficit. 

OPIC proposes in FY 2015 to continue the core principles and strategies outlined in the 

President’s FY 2014 request: to elevate OPIC’s institutional capabilities to meet development 

and policy challenges as well as to prudently manage OPIC’s growing portfolio. 

This budget also describes a new program to support equity investment, using OPIC’s own 

resources, as well as transfer authority, to mobilize private capital. Unique among peer 

development finance institutions in our inability to support equity investments, OPIC believes 

that this program is a key tool that can enable OPIC to deliver on key Administration 

development objectives. 

Administrative Resources Generate Revenues 

In this FY 2015 budget, OPIC proposes a scaled increase in funding for administrative resources. 

For FY 2015, OPIC proposes an additional $9.2 million in administrative expenses over the FY 

2014 enacted appropriation, equal to the amount requested for the FY14 budget. Of this amount, 

$1.8 million is included for new independent audits, evaluations, and inspections in response to 

mandates from Congress. As in prior years, the overall increase would be completely selffunded, and offset from revenues generated by the program. 

$ in millions FY 2013 FY 2014 FY 2015 

Actual Enacted Request

Resources 

 Administrative Expenses 53.3 62.6 70.0

 Audits, Evaluations, Inspections - - 1.8

 Administrative Appropriation 53.3 62.6 71.8

 Program Account 23.8 27.4 25.0

 Total Appropriations, Gross 77.1 90.0 96.8

 Collections, Net -408.2 -299.9 -299.9

 Net Budget -331.1 -210.0 -203.1

Commitments 

 Finance and Funds 3,756 2,400 3,400

 Insurance 171 600 800

 Total Program 3,927 3,000 4,200

 Renewables 1,211 1,000 1,000

FTE 229 246 255
5 

Funding for Limited Partner Authority 

This budget includes $20 million in transfer authority and up to $10 million from OPIC’s 

subsidy appropriation to implement OPIC’s existing authority to execute a targeted equity 

investment program. OPIC envisions using this authority and its 25 years of experience in 

selecting fund managers to invest as a Limited Partner (“LP”) in privately managed funds 

targeting companies in OPIC-eligible countries. 

This additional tool would give OPIC the capability to deploy capital to sectors and high priority 

regions which it cannot do today. As an example, today there are at least a dozen viable fund 

managers in MENA and Sub Saharan Africa alone that could launch operations with OPIC 

equity investment, thereby unlocking multiples of private sector development capital in the 

region. As one of the most experienced players globally in supporting emerging markets private 

equity funds, OPIC has the skills and prudent underwriting capabilities needed to be successful 

as an LP. OPIC could undertake this program with few, if any, new capabilities required, 

thereby further increasing OPIC’s ‘bang for the development buck’ and maximizing the 

efficiency and effectiveness of U.S. government resources. 

OPIC’s Mission supports both Domestic and Foreign Policy 

OPIC’s FY 2015 budget proposal is ambitious and would quantitatively and qualitatively 

transform OPIC’s ability to bring needed investment and jobs to Africa and post-conflict areas, 

and to mobilize non-Federal resources to global development challenges such as clean and 

renewable energy and sustainable economic growth. This plan reflects the fact that OPIC’s 

operations and structure can scale to larger levels to generate greater value for the taxpayer. 

 OPIC Supports the President’s Commitments – OPIC is a critical tool to fulfilling the 

President’s commitments to key initiatives including Power Africa, the Global Climate 

Change Initiative, the Middle East and North Africa, U.S.- Asia Pacific Comprehensive 

Partnership for a Sustainable Energy (U.S.- ACEP), Feed the Future, and the Partnership for 

Growth. 

 OPIC Reduces the Deficit – OPIC generates more income than it uses, thereby reliably 

reducing the deficit year after year. In FY 2013, OPIC collected more than $5 for every 

dollar of appropriated funds received (administrative expense and subsidy) or, put another 

way, OPIC collected almost $8 for every dollar of its administrative expense budget alone. 

 OPIC Supports National Security and Foreign Policy – OPIC efficiently mobilizes the 

private sector to support U.S. development and foreign policy objectives – even in 

challenging environments. 

 OPIC Assists U.S. Businesses and Small and Medium Enterprises (SME’s) – OPIC 

supports U.S. jobs and exports through U.S. businesses expanding and exporting into 

emerging markets. It allows SMEs, with their growth and employment potential, to access 

fast growing emerging markets. 
6 

FY 2015 Budget Request

OPIC has a unique value to the Budget by directly supporting foreign policy and development, 

while at the same time generating income for the budget. Given the likelihood of limited 

budgetary resources for foreign policy and development, approaches such as OPIC’s are a 

critical solution to supporting development goals in a flexible and cost-effective way. 

 

OPIC’s request represents an effective use of additional resources, because: 

 

 All of OPIC’s funds are provided out of its own balances, not out of the General Fund of the 

U.S. Treasury. 

 OPIC’s proposed budget can be offset with negative subsidy – generated by its transactions. 

 OPIC is efficient with its resources. 

o OPIC is a small agency at approximately 230 FTE supporting an $18 billion portfolio of 

more than 500 transactions in more than 102 countries. 

o Over its history, OPIC has mobilized approximately $2.60 in non-Federal resources for 

each $1 of its insurance and finance commitments. 

o In FY 2013, each OPIC employee generated an average of $17.1 million in new 

commitments and more than $1.8 million in revenue for the Federal government.

The proposed budget will allow OPIC to grow from $3.9 billion in annual commitments in FY 

2013 to an estimated $4.2 billion in FY 2015 and generate estimated collections of $300 million. 

These collections are comprised of interest on OPIC’s holdings in Treasury securities, negative 

subsidy and insurance income. The scaled growth proposed by this budget can reduce total risks 

by intelligently diversifying OPIC’s exposure and developing OPIC’s institutional capabilities. 

This balance is the key to extending OPIC’s record as a self-sustaining agency and corporation. 

$ in millions FY 2013 FY 2014 FY 2015 

Actual Enacted Request

Resources 

 Administrative Expenses 53.3 62.6 70.0

 Audits, Evaluations, Inspections - - 1.8

 Administrative Appropriation 53.3 62.6 71.8

 Program Account 23.8 27.4 25.0

 Total Appropriations, Gross 77.1 90.0 96.8

 Collections, Net -408.2 -299.9 -299.9

 Net Budget -331.1 -210.0 -203.1

Commitments 

 Finance and Funds 3,756 2,400 3,400

 Insurance 171 600 800

 Total Program 3,927 3,000 4,200

 Renewables 1,211 1,000 1,000

FTE 229 246 255
7 

Limited Partner (LP) Authority 

Based on OPIC’s 25 years of experience in supporting emerging markets private equity funds, 

OPIC proposes to use up to $30 million ($20 million in transfer authority plus up to $10 million 

from OPIC’s appropriation for subsidy) to execute an equity investment program to fund limited 

partner (LP) interests in privately managed investment funds and to support limited investments 

in discrete and highly-developmental projects. Using OPIC’s existing authority, an LP 

investment program could be self-sustaining within ten years, assuming an average historical 

emerging markets private equity rate of return of 8.08 percent and the re-investment of both the 

program’s returns and the initial capital.1 OPIC bases these estimates on (a) best practices used 

by institutional investors and other development finance institutions for private equity investing, 

(b) analysis of various risk/return profiles of funds, and (c) comparisons of value at risk between 

OPIC’s current debt instrument and a potential LP equity investment. Each investment would be 

considered a direct outlay at face value, with any returns considered an offsetting collection. 

Fund manager selection is the single most important factor in determining successful fund 

performance and associated risks. Accordingly, OPIC would continue the rigorous, competitive 

and transparent selection process that it has developed since 2002, and would continue to seek 

top quality fund managers for these privately managed funds. By acting as an LP investing 

equity alongside other LPs and development finance institutions, OPIC could (a) better align its 

interests with other LPs, (b) attract U.S. institutional investors into emerging markets, and (c) 

potentially earn a greater return on the proposed equity investment program vs. its existing debt 

financing facility. 

OPIC is Self-Sustaining 

 

When it was created in 1971, OPIC was organized as a government-owned corporation in order 

to operate as a business, on a self-sustaining basis at no net cost to the American taxpayer. OPIC 

does this 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’s structure – its authorizing legislation, its status as a government-owned corporation, 

down to the design of its accounting systems - reflects through the budget that OPIC is intended 

to be run as a self sustaining business. OPIC’s operations generate income, create capital, and 

set aside resources for the activities of the business. OPIC does not draw resources from the 

General Fund of the Treasury. Rather, OPIC invests its earnings in Treasury securities, and thus 

lends to the Treasury. OPIC’s reserves now total $5.4 billion invested in Treasury securities – 

insulating the Treasury from the risk that OPIC’s portfolio might generate losses in excess of 

those already budgeted. 

By balancing risks, returns and resources, OPIC earns a nominal return for the budget, maintains 

itself as a fully self-sustaining Federal Corporation, and helps to reduce the Federal deficit. In 

FY 2013, OPIC’s positive effect on the Federal budget totaled $426 million – the 37th 

 

1 Based on the 20-year average for Emerging Market Private Equity funds per the March 31, 2013, Cambridge Associates Selected Benchmark 

Statistics.

9 

 OPIC’s Revenues scale with Program Levels – The higher the program level, the more OPIC 

can generate in net revenues. 

 Alternatives Considered – OPIC cannot scale its program without adding staff because 

OPIC’s approvals are case-by-case. OPIC has explored other means of delivering larger 

program levels within the same resources using a range of approaches. 

o Delegating deal origination – This requires finding business partners who are 

willing to work within OPIC’s several statutory requirements and approval process. 

OPIC already works with major banks and is working to develop other quality 

lending relationships. 

o Automation – OPIC’s project-specific focus and statutory requirements make it 

difficult to achieve scale without staffing to execute the analysis required by law. 

o Larger Transactions – OPIC could focus its resources on larger transactions; 

however, that approach would further concentrate risks and would displace OPIC’s 

ability to serve small- and medium-sized businesses. 

Strategic Investment in Technology 

In order to adequately monitor OPIC’s portfolio and maintain private sector reporting standards, 

OPIC management anticipates a continuing need for additional integration of OPIC’s 

information technology systems. In particular, we see a need in the following areas: 

Systems Life Cycle and Mandates 

o Reporting systems –Treasury, OMB, OECD, and external audit requirements require 

systems upgrades and management. Compliance with government-wide requirements, 

continuous operations and maintenance, and a needed rolling replacement of obsolete 

and unreliable equipment require ongoing resources. Meeting these reporting 

requirements calls for the development of effective reporting solutions. 

o Legacy system replacement – Core critical systems such as Staff Central (OPIC’s 

on-boarding and off-boarding system) and APPX (a project pipeline management 

software application) are built on archaic, unsupported technology that must be 

modernized to meet Federal audit control standards. Replacement of these systems 

enhances OPIC’s ability to report externally and fosters internal productivity and 

efficiency. 

o Support of credit reform – OPIC’s existing data structures and capabilities are 

challenged by efforts to track, analyze and report data at an individual loan level.

Desktop data integration and management require new tools. 
10 

o IT Compliance - Electronic records, privacy, continuity, security, and mobile 

initiatives or requirements are functions which are required government-wide and 

must be aligned, implemented, and maintained across the organization. 

Mission and Operation Support 

o Underwriting Policy and Integration – OPIC’s production process can always be 

improved with process support. Mandated requirements tend to crowd out efficiency 

improvements. 

o Portfolio Risk management – OPIC manages an $18 billion portfolio on systems 

which are a small fraction of that exposure. As OPIC develops its support for 

industry standard derivatives, direct loans in a foreign currency, and local currency 

guarantees, OPIC requires a capability to analyze and monitor these exposures. 

OPIC’s current accounting, reporting, and credit reform capabilities are not able to 

sustain these products.

o Transition to the Cloud - to include functional elements such as e-mail, knowledge 

management, and collaboration technologies will require planning, management and 

oversight of the all phases of the migration, including, risk management, security 

transition, execution, and long-term management of the service level agreements with 

commercial vendors. 

Customer Facing Innovation - Within its resources, OPIC is developing market standard and 

common sense ways to better support customers small and large. OPIC also has fee authority 

enabling and supporting a capability to provide services to current and potential investors. 

o Accessibility to Services – The development and implementation of application 

functionality such as a web-based customer application portal improves potential 

customers’ access to OPIC services, and ultimately the likelihood of customers 

accessing OPIC’s product lines. Further development and implementation of similar 

functionality will continue to increase customer accessibility to OPIC’s services and 

in turn, result in increased earnings and development impacts. 

o Streamlined Customer Experience – Today, OPIC data are managed in silos across 

the organization, so crosscutting customer data is not easily retrievable and associated 

data integration is challenging. A “one-stop-shop” customer portal offers a 

streamlined customer interface where all OPIC products and associated activity is 

available, the customer can submit or request information with ease, and selfservicing account management is conventional. This critical interface will improve 

the customer experience, customer data management, internal data management and 

processes, and overarching data integration across OPIC products. 
*

* 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.
12 

 Collapse of the Soviet Union – OPIC provided $125 million in financing for 

telecommunications installation in Russia in 1994, allowing for the free flow of information 

across the country. 

 Rwandan Genocide – In 1997, OPIC provided insurance to the first U.S. investor in 

Rwanda after the genocide, investing in a tea plantation. 

 Russia/Georgia War of 2008 – OPIC was the first institution to lend to the two largest 

banks in Georgia after the war. OPIC provided credit to local banks so they could expand 

lending to small- and medium-sized enterprises. 

More information on OPIC activities on countries of significant foreign policy importance can be 

found in Appendix D: OPIC Activity in Selected Countries. 

Cross Cutting Initiatives 

As a small agency, OPIC is flexible and can respond rapidly to foreign policy and development 

needs. 

OPIC’s proposed budget maintains OPIC’s ability to be responsive to key initiatives such as 

Power Africa, the Global Climate Change Initiative, U.S.- Asia Pacific Comprehensive 

Partnership for a Sustainable Energy (U.S.- ACEP), the Partnership for Growth, Sub-Saharan 

Africa Presidential Policy Directive, Feed the Future, and support for the Middle East and North 

Africa. 

OPIC has played a key role in advancing these policy goals, and OPIC will continue to play a 

key role wherever the private sector can be mobilized in support of development and U.S. 

foreign policy objectives. 

 Power Africa – OPIC, which has a long history of supporting projects in Sub-Saharan 

Africa, will now play a key role in a new U.S. initiative to double access to electricity in 

Sub-Saharan Africa. (See page 13 for more details). 

 Middle East/North Africa – OPIC has a portfolio of more than $3 billion in the region. 

(See pages 14 and 30 for more details). 

 Partnership for Growth – OPIC supports sustainable economic development in priority 

countries (See Appendix F for more details). 

 U.S.–Africa Clean Energy Finance Initiative (U.S.-ACEF) – U.S.-ACEF is a mechanism 

to support clean energy financing in Sub-Saharan African and LDC countries. The initiative 

was developed in cooperation with the State Department and the U.S. Trade and 

Development Agency (See page 23 for more details). 
13 

 National Impact Initiative - In June 2013, the Obama Administration launched the 

National Impact Initiative (NII) to expand the use of impact investing as an element of the 

Administration’s strategies for economic growth and global development.2

Impact Investing is the practice of channeling capital toward businesses that intentionally 

generate economic return and public benefit. Such businesses generally track and measure 

social, environmental, and governance (ESG) parameters alongside their financial returns. 

OPIC has a long history of transforming private capital into solutions for common social 

and environmental challenges around the world and today is a leading impact investor in the 

U.S. Government. Across the agency, OPIC provided more than $1.1 billion in finance and 

insurance support to projects that generate social and environmental returns in addition to 

financial returns. 

 Renewable resources and energy security – OPIC is proving to be instrumental to 

fulfilling the U.S. Government’s commitments set out at the UN Climate Change 

Conferences in Copenhagen, Cancun, Durban and most recently, Doha. In fact, OPIC 

commitments to renewable resources projects represented more than one-fourth (27 percent) 

of all U.S. “Fast Start” climate financing. (See page 21 for more details).

Power Africa 

On June 30, 2013, President Obama announced Power Africa, a new initiative to double access 

to power in sub-Saharan Africa. 3 More than two-thirds of the population of sub-Saharan Africa 

is without electricity, and more than 85 percent of those living in rural areas lack access. Power 

Africa will build on Africa’s enormous power potential, including new discoveries of vast oil 

and gas reserves, and the potential to develop clean geothermal, hydro, wind and solar energy. It 

will help countries develop newly-discovered resources responsibly, build out power generation 

and transmission, and expand the reach of mini-grid and off-grid solutions. 

The region has in recent years seen strong economic growth and an expanding consumer class, 

but limited electricity remains a major problem. These severe shortages limit overall quality of 

life as well as business and agricultural activity.

According to the International Energy Agency, sub-Saharan Africa will require more than $300 

billion in investment to achieve universal electricity access by 2030. Only with greater private 

sector investment can the promise of Power Africa be realized. With an initial set of six partner 

countries in its first phase, Power Africa will add more than 10,000 megawatts of cleaner, more 

efficient electricity generation capacity. It will increase electricity access by at least 20 million 

new households and commercial entities with on-grid, mini-grid, and off-grid solutions. And it 

will enhance energy resource management capabilities, allowing partner countries to meet their 

critical energy needs and achieve greater energy security. 

The initiative will focus initially on Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania, all 

countries where OPIC has supported projects. 

 

2

 http://www.whitehouse.gov/blog/2013/06/07/announcing-national-impact-initiative-uk-s-g8-social-impact-investing-forum

3

 http://www.whitehouse.gov/the-press-office/2013/06/30/fact-sheet-power-africa 
14 

OPIC supports the initiative in three key ways. 

 OPIC will commit up to $1.5 billion in financing and insurance to energy projects in SubSaharan Africa. 

 OPIC is working with the U.S. Trade and Development Agency to provide $20 million in 

project preparation, feasibility and technical assistance support. These contracts are 

provided through the U.S.–Africa Clean Energy Finance Initiative (U.S.-ACEF) and 

supported by the new U.S. – Africa Clean Energy Development and Finance Center 

(CEDFC) in Johannesburg, South Africa (See page 23 for more details).4

 OPIC will co-host an African energy and infrastructure investment conference with the 

U.S. Agency for International Development (USAID) in 2014 to help highlight the 

opportunities of investing in Africa’s electricity sector and the tools available from 

different U.S. Government agencies to support these investments. 

Supporting the Middle East and North Africa in the Wake of the Arab Spring

OPIC has a long and successful history as a catalyst for private-sector investment in the Middle 

East and North Africa (MENA). OPIC supports private sector investment in the MENA region 

by providing the capital and risk mitigation tools that investors need to overcome barriers faced 

in the region. These tools include financing, political risk insurance and support for private 

equity funds. OPIC’s current portfolio in MENA totals nearly $3.3 billion across 62 projects. 

OPIC’s historical work in the region has been robust as well, with over $9 billion committed in 

support of nearly 500 projects in MENA countries since 1974. 

MENA is a top regional priority for OPIC, and the sweeping changes taking place throughout the 

region make OPIC’s work to stimulate private capital investment even more critical. In recent 

years, MENA has faced a serious credit crunch. Reports suggest most of the between 1.9 and 2.3 

million formal small- and medium-sized enterprises (SMEs) in the region do not have access to 

credit. Furthermore, unemployment rates in the MENA region are the highest of any region in 

the world, with overall rates at 19 percent in 2012, and youth rates at about 25 percent. OPIC’s 

initiatives help address these issues by catalyzing private sector investment and encouraging 

partnerships between U.S. and local businesses as a powerful means to promote development 

and shared prosperity while contributing to stability, growth, and job creation. 

In March of 2011, then Secretary of State Hillary Clinton announced OPIC would provide up to 

$2 billion in financial support to catalyze private sector investment in the Middle East and North 

Africa, strategically targeting SMEs. In May 2011, President Obama announced that OPIC 

would provide up to $1 billion in new financing to support infrastructure and job creation in 

Egypt. 

OPIC is delivering on these two commitments, with more than $1.5 billion in financing, 

guarantees and insurance committed to date. This support has enabled new investment in critical 

 

4

 http://www.state.gov/secretary/rm/2012/06/193912 htm 




19 

OPIC is Efficient 

In 2012, the Partnership for Public Service ranked OPIC second among small Federal agencies 

for its innovative culture.6 OPIC’s innovative approaches span across improving internal 

processes to the external systems used by potential OPIC clients. As a result of its reforms, OPIC 

can serve more businesses, in less time, at a lower cost. 

 Framework Agreements − One example of such efficiencies is in the use of “framework 

agreements.” OPIC has signed multiple framework agreements with international 

commercial banks to standardize workflow, divisions of responsibilities, and risk 

relationships so that these lenders can efficiently integrate with OPIC. These lending 

partnerships provide businesses in emerging markets with access to the international bank 

market, many of them for the first time. Framework agreements allow OPIC to delegate 

project origination and costs in target countries and sectors. Under these agreements, the 

partner bank originates the deal, conducts due diligence, and presents the proposal to 

OPIC. Framework agreements allow OPIC to better leverage its expertise, achieve 

economies of scale, and affect broader development outcomes. 

 

 Updating and Streamlining Internal Policies − This past year OPIC undertook a 

comprehensive effort to update, clarify, and harmonize transaction guidelines in order to 

more easily meet our client’s demands and deliver a greater developmental impact. OPIC 

management identified, analyzed, and addressed the different constraints on OPIC’s 

ability to do business. The resulting policies are more transparent, consistent, and 

flexible, and better reflect the way businesses operate. 

 Enterprise Development Network (EDN) − Another example of an efficient business 

model at OPIC is the Enterprise Development Network (EDN). EDN is a strategic 

alliance between OPIC and the private sector which allows participating entities to act as 

“deal originators” for OPIC. Through a network of private sector organizations, such as 

participating financial institutions, business consultants, associations, law firms, 

state/regional promotion and sister agencies, EDN extends OPIC’s ability to provide 

financing and political risk insurance to small businesses doing business in developing 

countries. By empowering such service providers, the network results in more efficient, 

cost-effective delivery of services to American and local businesses. OPIC now deploys 

a network of over 100 private sector partners and business consultants that generate, 

screen, and prepare transactions on a fee-for-success basis. This significantly reduces 

staff time in screening and advising prospective clients. 

 Cycle Time − By simplifying the process of reviewing applications, OPIC has reduced 

the typical approval cycle time. It has negotiated a cooperation agreement with fellow 

development finance institutions such as the International Finance Corporation, to 

harmonize loan documentation, due diligence, and legal processes. These steps will save 

 

6

Partnership for Public Service, Best Places to Work Snapshot Achieving a Culture of Innovation, published July 23, 2012. See 

http://ourpublicservice.org/OPS/publications/viewcontentdetails.php?id=208 
20 

time and reduce costs for both lenders and clients while enabling OPIC to increase its 

impact with fewer resources. 

 Trimming Processes and Paperwork − Historically, more than half of all applications 

were received by OPIC with errors and returned to the client for clarification. To improve 

efficiency, lessen the burden on businesses, cut costs, and improve response time, OPIC 

has simplified client applications. The length of the private equity application has been 

reduced by 30 percent, and the finance application is transitioning to a web-based “smart” 

system. This new system aims to reduce cycle time by 20 percent by avoiding 90 percent 

of application errors. 

 Issuing “Master” Insurance Contracts − When an investor needs to insure a series of 

similar projects or activities in a number of countries, OPIC can issue a single master 

contract that replaces the numerous similar contracts which would have required separate 

negotiation, clearance, approval, and administration. Master contracts save time and 

improve client services, minimizing redundancies in the contracting process. These 

contracts have been utilized by a number of relief organizations, such as the International 

Rescue Committee, to protect their assets in post-conflict countries. 

 IT Improvements − In addition to improving and simplifying applications and other 

internal processes, OPIC has made targeted investment in information technology to 

improve internal operations, streamline acquisitions, deliver services, and has achieved 

savings in core technology costs and non-salary administrative costs. These investments 

have reduced overall administrative expenses by two percent. Examples of these costsaving measures include: 

o Upgrading OPIC’s General IT Support System including renovating the network 

infrastructure, replacing an antiquated data protection systems, an upgrading data 

storage devices. These changes allow OPIC to operate more efficiently and 

effectively in the modern business environment and provide the basis for a core 

infrastructure to build new system modernization applications and tools. 

o Standardization of desktops and data centralization will improve on the management 

and security of the user interface and protect information from malicious attack or 

system failures. 

o Implementation of a wireless network provides streamlined internet access for 

customers and improves efficiencies by utilizing mobility services through expanded 

technologies. 

22 

emissions cap for its portfolio to meet an even steeper reduction target of 50 percent by 

September 30, 2023. OPIC is steadfast in its commitments to the renewable resources sector and 

is on track to meet its ambitious goals. The global transition to cleaner forms of energy is 

perhaps the most pressing yet predictable economic transformation in modern history. While the 

environment, health, and considerations of social stability and energy independence drive this 

change, a clear driver should be both the economic opportunities for U.S. technology, as well as 

the opportunity to support a cleaner energy trajectory for emerging economies. 

Innovative Products 

OPIC has launched several new, innovative financial and insurance products to drive investment 

in the renewable resource sector, including: 

 

 Insurance Protection for Regulatory Risks - Provides a guarantee of payments under a 

power purchase agreement against unilateral changes of tariffs, e.g., a Feed-in Tariff, or 

against government actions that interfere with investors’ ability to utilize REDD or carbon 

credits, insulating investors from such regulatory risks. 

 Political Risk Insurance Coverage for Modernizing African water and agricultural 

Systems – OPIC has tailored our flagship product to help modernize virtually every aspect of 

a nation’s water sector and agriculture industries – upgrading technology, rehabilitating 

existing water treatment systems, increasing production, converting waste to biofuel, raising 

wages and gaining access to global markets for agricultural products. 

 Leasing Finance – Standardized loan structure to financial institutions for leasing renewable 

energy and clean technology equipment. 

 Energy Efficiency Sub-Debt – Subordinated debt for energy efficiency improvements with 

repayments tailored to expected cost savings. 

Recent Commitments 

In FY 2013 OPIC approved a number of renewable resources projects, including: 

 Solar Power – OPIC has committed up to $365 million for three solar photovoltaic (PV) 

plants in Chile, totaling 218 MW of anticipated energy generation. On the other end of the 

spectrum, OPIC is financing approximately $10 million for a 3MW Solar PV project in rural 

Tanzania. 

 Wind Power – OPIC is providing $193 million for two wind farms, totaling 81MW of 

anticipated output, in Northwestern Peru and $102 million in financing for a 50MW wind 

project in the Sindh Province in Southeastern Pakistan. 

 Cookstoves – OPIC is providing $3 million for the development of cookstoves and $4 

million to support cookstove distribution – totaling $7 million for cookstoves intended for 

several African markets. 
23 

 Agriculture – OPIC is providing $14 million in financing for agriculture in Tanzania and 

Romania and $310 million for insurance coverage of water and agriculture projects in Ghana 

and Rwanda. 

The global transition to cleaner forms of energy is perhaps the most pressing yet predictable 

economic transformation in modern history. While the environment, health, and considerations 

of social stability and energy independence drive this change, a clear driver should be both the 

economic opportunities for U.S. technology, as well as the opportunity to support a cleaner 

energy trajectory for emerging economies. 

U.S.-Africa Clean Energy Finance Initiative (U.S. -ACEF) 

U.S.-ACEF is a new four-year, $20 million program being implemented by OPIC, in 

collaboration with the U.S. Department of State, the U.S. Trade and Development Agency 

(USTDA), and the U.S. Agency for International Development (USAID). The goal of the 

program is to catalyze private sector investment in the African clean energy sector by providing 

support for project development costs. Energy access is a major constraint to development in 

Africa, as nearly 67 percent of Sub-Saharan Africans lack access to electricity.8 Yet the African 

continent possesses abundant clean energy resources waiting to be harnessed. 

One of the main obstacles to accelerating clean energy investment in Africa is a lack of support 

to help cover project development costs. Due to this funding gap, otherwise viable clean energy 

projects that have the potential to deliver reliable energy to consumers in a commercially 

sustainable fashion often fail to attract the necessary financing. The U.S.-ACEF program will 

provide project preparation funding to project developers who are interested in working in 

Africa, but who require a small amount of catalytic project support. 

U.S.-ACEF aligns U.S. Government resources and leverages the expertise of several U.S. 

Government agencies to catalyze much-needed private sector investment in clean energy projects 

in Africa. U.S.-ACEF seeks to address the acute energy needs in Africa while piloting a new 

method of U.S. Government interagency collaboration that has the potential to be replicated in 

other regions and sectors. 

In FY 2013, the program’s inaugural year, U.S.-ACEF approved a total of $2.3 million in earlystage project support for six clean energy projects in Ethiopia, Morocco, Rwanda, and Tanzania. 

These projects consisted of both renewable energy power generation projects (e.g., solar, wind. 

and biomass) along with companies focused on providing innovative off-grid energy solutions to 

those Africans that have limited or no access to reliable sources of electricity. 

U.S.‐Asia‐Pacific Comprehensive Energy Partnership (U.S.-ACEP)9

In November 2012, President Obama, in partnership with Sultan Haji Hassanal Bolkiah of 

Brunei and President of the Republic of Indonesia Susilo Bambang Yudhoyono, announced the 

U.S.-Asia Pacific Comprehensive Partnership for a Sustainable Energy Future. The Partnership 

 

8

 World Bank, World Development Indicators, http://wdi.worldbank.org/table/3.7 

9

 http://www.whitehouse.gov/the-press-office/2012/11/20/fact-sheet-us-asia-pacific-comprehensive-partnership-sustainableenergy 
24 

will offer a framework for consolidating and expanding energy and environmental cooperation 

across existing regional forums to advance efforts to ensure affordable, secure, and cleaner 

energy supplies for the region. 

OPIC will provide up to $1 billion in financing for sustainable power and energy infrastructure 

projects in Asia as part of the U.S. Government’s $6 billion commitment to support energy 

development in the region. The Partnership will drive investment and facilitate progress on four 

key regional priorities: renewables and cleaner energy; markets and interconnectivity; the 

emerging role of natural gas; and sustainable development and will engage with the private 

sector as well as partner countries in the region to determine specific projects within these four 

priority areas. 
25 

Appendices 

Appendix A: Proposed Legislation 

Reauthorization Legislation 

Extension of OPIC Authority 

A bill to reauthorize OPIC was introduced in the House as HR 2548 (“Electrify Africa Act of 

2013”) and a companion bill is pending in the Senate. 

Waiver of Requirement to Reauthorize 

While a reauthorization is pending, OPIC requires a waiver to continue its core programs. 

Typically, this waiver is included in OPIC’s annual appropriations. The waiver provision would 

provide as follows: 

Notwithstanding section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 

2195(a)(2)), the authority of subsections (a) through (c) of section 234 of such Act shall 

remain in effect through [September 30, 2015]. 

Appropriations Legislation 

Noncredit Account 

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 $71,800,000: 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. 
26 

Program Account 

For the cost of direct and guaranteed loans, $25,000,000, as authorized by section 234 of the 

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

Investment Corporation Noncredit 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 2015, 2016, and 2017: Provided 

further, That funds so obligated in fiscal year 2015 remain available for disbursement 

through 2023, funds obligated in fiscal year 2016 remain available for disbursement through 

2024, and funds obligated in fiscal year 2017 remain available for disbursement through 

2025: 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; Provided further, including up to 

$10,000,000 may be transferred to and merged with the Overseas Private Investment 

Corporation Noncredit Account for the purposes of section 234(g)(5) of the Foreign 

Assistance Act of 1961. 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. 

Transfer Authorities (General Provisions) 

Whenever the President 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 the Overseas Private Investment Corporation Noncredit 

account for the purposes of Section 234(g)(5) of the Foreign Assistance Act of 1961: 

Provided, That such funds shall not be available for administrative expenses of the Overseas 

Private Investment Corporation: Provided further, That the exercise of such authority shall 

be subject to the regular notification procedures of the Committees on Appropriations. 

. 

Export Financing Transfer Authorities 

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

available for fiscal year 2014, for programs under title VI 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. 
27 

Appendix B: Measuring Development Impact Matrix 

OPIC’s core mission is to promote private U.S. investment that will contribute to the economic 

development of the world’s less developed countries. OPIC selects projects that are likely to 

serve as foundations for long-term economic growth, especially those that improve upon the host 

country’s infrastructure, increase access to finance, and provide the basic human necessities of 

shelter, food, water and health care. 

OPIC has two measurement tools – one pertaining to physical investments and one tailored for 

financial services projects – that enable OPIC to compare the developmental impacts of projects 

across the portfolio and over time. In 2012, OPIC revised these tools in an effort to simplify, 

improve, and harmonize its development impact measurement with other development finance 

institutions. The revised tools became operational on October 1, 2012. 

OPIC measures development impact through the following five broad categories, regardless of 

the project’s industry sector or the host country’s level of development: 

 

Jobs & Human Capacity Building – In addition to the creation of direct, permanent jobs, the 

new matrix takes into consideration the creation of temporary/construction jobs. This factor also 

measures a project’s impact on employee training and employee benefits. 

Demonstration Effects – This factor measures a project’s impact on technology and knowledge 

transfer, technical assistance to suppliers or borrowers, the introduction of new products 

(including financial products), regulatory and legal reform, and the adoption of internationallyrecognized quality or performance standards. 

Host Country Impact – This factor measures a project’s downstream impact through the 

procurement of local goods and services (both initial and operational), as well as a project’s 

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. 

Environmental and Community Benefits – This factor captures a project’s environmental 

benefits, such as renewable energy, remediation of brownfield sites, or use of energy-efficient 

equipment, as well as a project’s efforts to help the community in which it operates. 

Developmental Reach – This factor measures the extent to which a project improves the host 

country’s infrastructure or provides specific benefits to the lower-income or underserved 

segments of the population such as women, or is located in a low-income country. For projects 

involving financial services, this factor measures the extent to which the financial intermediary 

will target underdeveloped areas or underserved, poor populations. 

 

A project must score at least 25 out of 100 possible points on the matrix to be considered 

developmental and clearly eligible for OPIC support. 
28 

Appendix C: OPIC Policy Monitoring Methodology 

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 the analysis of information submitted 

annually by investors in the form of an online “Self Monitoring Questionnaire.” As of 1993, Self 

Monitoring Questionnaires are required of all investors per the OPIC finance agreement or 

insurance contract. 

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

investment projects that the Office of Investment Policy staff across all disciplines will monitor 

on site, drawing active projects that exhibit specific characteristics within the portfolio. The 

sample of projects selected for site-monitoring includes: (1) a random sample of projects 

supported by the agency during a three-year period or “monitoring round”; (2) projects supported 

during this period that are sensitive with respect to U.S. economic effects, labor or environment, 

social, health and safety issues; and (3) projects from other years that have either not been sitemonitored in the past or that fit in logistically with randomly sampled projects in similar regions 

or countries. Applying the “sensitive project” sample on top of the randomly selected projects 

ultimately provides a conservative bias to the monitored results. 

Labor 

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

combination of annual reporting by companies as well as site visits to both random and selected 

samples of projects. OPIC targets its worker rights monitoring efforts toward countries and 

sectors with a higher potential for possible worker rights violations. 

 

Because certain areas of worker rights violations may be difficult to identify from a typical 

project site monitoring visit, in instances when OPIC determines further investigation is 

warranted for a project, OPIC may employ trained and certified labor rights auditors, usually 

recruited from the NGO community with reputations for impartiality and credibility among both 

the labor and business communities, to perform a full project audit. The auditors spend as much 

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

include independent and confidential interviews with employees and management. Interviews 

may also include relevant entities such as government officials and knowledgeable local NGOs 

and organized labor groups. 

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

With respect to environmental and social (E&S) issues, projects selected for site monitoring in a 

given year are prioritized based on an environmental and social risk rating. Environmental and 

social risk ratings are based on several factors including project sensitivity, host country context, 

project-level environmental and social management system, and investor experience in 

implementing projects of similar complexity. OPIC assesses the E&S performance of a project 
29 

against applicable benchmarks including contract conditions, international standards and 

guidelines, and industry best practices. Factors incorporated 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. 

U.S. Economic Impact 

OPIC helps U.S. businesses expand into rapidly growing emerging markets that have enormous 

pent-up demand and opportunities. These investments support jobs, both in developing countries 

and in the United States. OPIC will not support any project that will harm U.S. jobs or U.S. 

industry, or have harmful effects on the U.S. economy. In fact, OPIC projects have generated an 

estimated $75 billion in U.S. exports and supported more than 275,000 American jobs since 

1974. 

All projects visited are evaluated for their actual impact on the United States and host country 

economies, including the employment generation effects of the investments. OPIC ensures that 

projects do not negatively impact the U.S. economy. This analysis includes verifying export 

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

and verifying compliance with any restrictions put forward in the OPIC loan agreement or 

insurance contract (e.g. restrictions on exporting certain products to the U.S. or significant U.S. 

export markets). 

Developmental Impact 

Regarding host country economic impact, projects are reviewed across the same criteria as used 

at the time of project approval. Thus, an “apples-to-apples” comparison can be made between 

original estimates 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 also are evaluated and quantified during site monitoring. Finally, the project 

is scored on OPIC’s developmental matrix using actual findings, and this score is compared to 

the initial developmental impact assessment using the same criteria used in the project’s original 

OPIC review. 
30 

Appendix D: OPIC Activity in Selected Countries and Regions 

Middle East and North Africa (MENA) 

Since 1974, OPIC has committed more than $9 billion in support of nearly 500 projects in 

the MENA region. OPIC supports efforts to create sustainable jobs by targeting two main 

sectors: financial services and infrastructure. 

OPIC’s portfolio in MENA currently totals nearly $3.3 billion across 62 projects including: 

 Financial Services 

o Private Equity Funds – OPIC has committed to providing debt financing to a 

number of private equity funds operating in the MENA region, including $53 

million for Maghreb Private Equity Fund III and $30 million for Siraj Private 

Equity Fund I. 

o SME Credit – Up to $250 million each for Egypt and Jordan to create loan 

guarantee facilities for these two countries that will target SMEs. By targeting 

small businesses, these loans will help create jobs and economic growth in two 

key countries affected by recent economic and political events. This project 

involves a U.S. sponsor, Global Communities, and critical grant funding from 

USAID. 

 

o SME Credit – $10 million in financing for a SME loan guaranty program run by 

Koret Israel Economic Development Funds (KIEDF), an Israeli nonprofit 

organization. The project is expected to increase access in Israel to credit for 

SMEs, stimulate entrepreneurship, increase competition in the market, and 

provide knowledge transfer impacts by providing technical assistance to small 

business owners in developing business plans. The project will enable Bank 

Leumi, a major Israeli bank, to increase its lending to Jewish and Israeli-Arab 

borrowers identified by KIEDF, largely in the impoverished regions of Gilboa, 

Galilee and Negev. 

 Infrastructure

o Energy: Tri-fuel – $270 million in financing and $49 million in insurance to 

AES Corporation to support the development, construction, and operation of a 

240 MW tri-fueled electric power plant designed to meet peak demands for power 

in Jordan. The project will be adjacent to the existing Amman East project which 

received $70 million in OPIC financing in 2007 and which was named as one of 

the world’s top five gas-fired plants by Power Magazine in 2013. 

o Water – $200 million in financing to GE Ionics to support the construction of the 

Hamma Water facility in Algeria, the country’s first privately-owned water 

desalination plant. The facility delivers up to 200,000 cubic meters of potable 

water to Algiers each day, and provides potable water to 25 percent of the city of 

Algiers mitigating severe water shortages. 
31 

o Agriculture – $33 million in political risk insurance to Lindsay International 

Sales & Service, a Nebraska-based company supplying the Iraqi State Company 

for Agricultural Supplies with modern irrigation equipment which will help local 

farmers produce more ample harvests. With OPIC’s backing, Lindsay will ship, 

transport and install 650 pivot irrigation systems across Iraq, making a giant step 

toward revitalizing the farm industry in arid, drought-prone Iraq. This project will 

not only help make Iraq more self-reliant in its food supply but, by supporting 

productive farms, create jobs in a sector that has long been a leading employer in 

Iraq. 

o Oil & Gas – $340 million in insurance for the Apache Corporation, the largest 

U.S. investor in Egypt, to support the development of oil and gas concessions. 

Apache has maintained OPIC insurance for a decade, while the value of its 

investment has grown to $6 billion. This insurance coverage is crucial to Apache, 

the largest producer of liquid hydrocarbons and natural gas in the Western Desert 

and the third largest in all of Egypt. The company’s continued investment 

generates local employment opportunities and substantial tax revenues for the 

Egyptian government. Additionally, Apache sponsors the nonprofit organization 

Springboard - Educating the Future, which seeks to build 200 schools for 

Egyptian girls in rural communities. OPIC’s Board of Directors recently approved 

an additional $40 million in PRI coverage to support Apache’s continuing 

investment in Egypt. 

OPIC is currently completing due diligence on a number of high-priority projects, including: 

 Infrastructure (Education) – $50 million in financing for the construction and 

expansion of a medical center and student housing in Lebanon. 

 Infrastructure (Tourism) – $28 million in financing for the construction, development, 

and operation of a 220-room "green" hotel in Sousse, Tunisia. 

 Infrastructure (Education) – $39 million in financing for the construction of a 

permanent campus for a university in Morocco, which would allow for a significant 

expansion of student enrollment. 

 Infrastructure (Commercial) – $1 million in financing for the construction of a 

commercial building in the Palestinian Territories to support the operations of a U.S. nonprofit working there. 

 Energy Infrastructure (Solar) – $60 million in financing to an independent power 

producer for a power plant that will generate up to 100 MW of solar energy in Jordan. 
32 

Pakistan 

Since 1974, OPIC has committed more than $1.3 billion for 123 projects in Pakistan. OPIC 

investment in Pakistan supports the Administration’s economic development priorities in the 

region by focusing on: 

 Access to capital for SMEs 

 Infrastructure development (housing, energy, telecommunications) 

 Humanitarian assistance and disaster response 

OPIC’s portfolio in Pakistan currently totals $298 million across 14 projects, including: 

 Health care – $30 million loan to the Aga Khan Hospital and Medical College 

Foundation to renovate and expand the facility with a new ambulatory care building; a 

neonatal, medical and pediatric intensive care unit; a center for innovation in medical 

education; a child care center; a new private wing that will subsidize healthcare to poorer 

patients; and the introduction of advanced equipment throughout. This project will 

significantly improve the availability and quality of healthcare, and help address the 

critical shortage of hospital beds in Pakistan by increasing the total number of available 

beds at AKU Hospital by nearly 40 percent, increasing critical care beds by 65 percent. 

The expansion will also increase the number of in-patients admitted by 42 percent and the 

number of outpatients cared for by 19 percent annually, while also creating nearly 1,000 

jobs. 

 SME Credit – $7 million to help launch a microfinance institution with branches across 

the country and a $21.5 million loan guarantee to help expand its microfinance portfolio 

that features a special program for those affected by flooding in the summer of 2010 as 

well as individuals and small businesses in underserved areas of the country. 

 Infrastructure – $20 million for the construction of a 28-story office building in 

Karachi. Karachi, with a population of 18 million people, has a critical shortage of 

commercial real estate, which has deterred business investment. The building will have 

several sustainability features, including a natural-gas fired cogeneration power plant, an 

exhaust heat recovery system, condensation collection systems for water usage, and 

efficient lighting fixtures. It will also feature world-class IT and security systems. The 

building is now completed and has leasing commitments signed for 46 percent of the 

office space, and expects tenants to begin moving into the space in early 2014. 

 Renewable Energy (Biomass) – $16.7 million for a 12 MW biomass-fueled power plant 

that will utilize bagasse, a byproduct from sugarcane and rice husks and other plant 

wastes for fuel. The project will help Pakistan to address its electricity deficit with a 

carbon-neutral source of renewable energy. 
33 

 Renewable Energy (Wind) – $95 million in financing for a 50 MW wind plant in 

southeastern Pakistan to generate emission-free electricity was approved by the Board in 

March 2013. This sustainable power facility will help Pakistan diversify its power 

generation away from high-priced fuel oil and help reduce chronic power shortages, 

bringing important benefits to the economy and the Pakistani people. 

OPIC is currently completing due diligence on several priority projects in Pakistan, 

including: 

 Renewable Energy (Biomass) – Insurance to support the construction and operations of 

a biomass-fueled power plant. 

 Micro-Financing (Housing) – Financing to support the expansion of a local microfinance bank’s mortgage lending portfolio in connection to a new affordable housing 

development. 
34 

Iraq 

Since 2004, OPIC has committed $575 million in 28 projects in Iraq. 

OPIC’s portfolio in Iraq currently totals $207 million across 6 projects, including: 

 SME Credit – In 2005, OPIC leveraged grant resources and the U.S. private sector to 

create the Iraq Middle Market Development Foundation (IMMDF), which has made 

loans to businesses, especially SME’s, including in the agricultural sector. OPIC 

continues to provide financing to support growing enterprises that show promise in the 

recovering Iraq economy.

 Microfinance – OPIC is financing $65 million for the expansion of microfinance 

services in Iraq. This debt facility will enable the expansion of the largest microfinance 

service provider in the country, which serves almost 23,500 clients. Most of the clients 

are micro-entrepreneurs working in the trade and service sectors, including grocery 

stores, mobile phone shops, clothing and accessories, as well as electricians and 

mechanics. 

 Humanitarian Assistance – OPIC is providing $212,000 in insurance to an international 

organization to support its activities and services in Iraq. 

 Infrastructure (Housing) – OPIC is financing $26.8 million for the construction of 

about 450 middle-income homes in Maysan province and financing for the construction 

and lease purchase financing for over 1,500 affordable housing units in Kurdistan. Iraq 

has a housing deficit that dates back several decades, with an estimated need of more than 

one million units. 
35 

Haiti 

Since 1974, OPIC has committed over $269 million in 83 projects in Haiti. 

 Historically, OPIC has focused its financial solutions on key sectors including: 

 Food security 

 Infrastructure (including housing, water, power, and telecommunications) 

 Renewable Resources 

 Expanding credit to SMEs 

Currently, OPIC’s portfolio in Haiti totals over $76 million across 7 projects, including: 

 Agriculture and Food Security – $44 million in insurance for the expansion and 

reconstruction of Les Moulins d’Haiti, a flour mill that was destroyed in the 2010 

earthquake. The mill had produced as much as 95 percent of the flour consumed in Haiti, 

and restarting the mill has increased the country’s food production capacity and domestic 

food security. The mill is especially important since wheat and wheat-derived products 

have long been staples of the diet in Haiti, particularly among the country’s low-income 

families. Along with increased production capacity and more modern equipment, the 

facility was rebuilt to handle greater seismic activity. Rebuilding the mill is expected to 

support at least 100 local jobs. 

 Housing – $17 million in long-term loans to Development Innovations Group (DIG), a 

Maryland-based finance and development firm, in conjunction with a $6 million grant 

from USAID, and $3 million from the Clinton Bush Haiti Fund. This project addresses a 

critical need for housing finance in Haiti, where more than 360,000 people continue to 

live in tents and other temporary housing following the 2010 earthquake. The project is 

creating three new loan products targeting low-income borrowers, including housing 

microfinance loans that start at $1,000 and micro-mortgages that start at $5,000. The 

project is also providing access to credit to the economically active poor to build, repair, 

improve, or expand homes, or to help business owners rebuild and re-open their 

businesses. It is estimated that more than 4,000 Haitians stand to benefit from the Project. 

OPIC is currently completing due diligence on several high priority projects in Haiti, including 

financing for the manufacturing of packaging components for the sale and shipping of local 

products, a move that will enable the Haitian economy to increase exports. 
36 

Sub-Saharan Africa 

Since 1974, OPIC has committed over $8.54 billion in support of 476 projects in 

Sub‐Saharan Africa. 

Through sustainable investments in communities and resources, OPIC supports the 

Administration’s commitment to social and economic prosperity in the region. Existing OPIC 

initiatives and new projects especially focus solutions on four critical areas: 

 Financial services 

 Infrastructure development (energy, construction, and housing) 

 Agriculture and food security 

 Renewable resources. 

OPIC’s portfolio in Sub‐Saharan Africa currently totals $3.9 billion across 119 projects. 

 Financial Services – OPIC is currently financing over $1.3 billion for projects in 

financial services, including microfinance and credit for small and medium enterprises 

(SMEs). For example, OPIC is providing $12 million in financing for Bangladesh Rural 

Advancement Committee (BRAC)-owned microfinance institutions in Tanzania. By 

providing capital to those who would otherwise be unable to obtain credit from 

mainstream banks, these MFIs are an engine for income generation in Tanzania. 

 Infrastructure – OPIC is currently financing over $721 million for infrastructure 

projects in energy, construction, and housing. Sample projects include: 

o Energy (Tri-fuel) – $179 million in loans and political risk insurance to build a 

100 MW “tri-fuel” power plant in the Republic of Togo, tripling Togo’s energy 

generation capacity and virtually ending the nation’s rolling blackouts. The 

project was also recognized as one of the Top 40 public-private partnerships of 

recent years by the International Finance Corporation and Infrastructure Journal. 

 

o Energy – $37.8 million in political risk insurance to support the construction of 

three combined heat and power (CHP) plants in Nigeria for the Nigeria Bottling 

Company (NBC), an affiliate of a Coca-Cola brand distribution company. CHPs 

have energy efficiency as high as 90%, which is significantly better than the 35-

40% efficiency of conventional gas-fired simple cycle power plants. One of the 

plants will also incorporate a carbon capture technology to trap and purify 

approximately 95% of the CO2 from the CHP’s flue gas. This CO2 can then be 

repurposed and used by NBC in their beverages or sold to companies who need 

food grade CO2. These innovative projects will promote energy efficiency, while 

lowering carbon emissions and also supporting local economic development. 

 Renewable Energy – OPIC is currently financing over $576 million for renewable 

projects. Sample projects include: 
37 

o Geothermal – Up to $310 million for a project that will double the generating 

capacity of a geothermal plant in Kenya, adding 52 MW to the existing 48 MW 

of capacity. The expansion will incorporate environmentally-friendly American 

technology, and create over 50 new local jobs. It is also expected to support 

approximately 107 U.S. jobs through procurement of U.S. goods. 

o Solar – OPIC has committed up to $250 million in financing for the agency’s first 

solar power project in South Africa, a 60-megawatt plant that will help diversify 

the country’s electricity generation beyond its heavy coal concentration and in the 

process avoid emissions of approximately 140,000 tons CO2in its first year alone. 

The OPIC financing will enable two U.S. companies to construct and operate a 

solar photovoltaic plant in Boshoff, in South Africa’s Free State province. All 

electricity generated by the plant will be sold to the national grid through a powerpurchase agreement. 

 Agriculture and Food Security – OPIC is currently financing over $21 million for 

agriculture and food security projects. Sample projects include:

o Agriculture (Investment Funds) – OPIC executed a $50 million Finance 

Agreement to support the African Agriculture Fund; a $243 million fund focused 

on the primary (arable and plantations), secondary (processing and animal feeds), 

and tertiary (storage, fertilizers, packaging) agricultural sectors in Africa. The 

fund will seek to invest in commercial farming operations with expansion 

potential, and to bring modern management skills to those operations in order to 

improve performance. 

o Agriculture and Food Security (Processing): $7 million in insurance to support 

the expansion of tea processing facilities at the Sorwathe factory in Rwanda. Tea 

Importers, the U.S. company that owns Sorwathe, currently purchased tea leaves 

from about 5,000 small landholders, making the factory a critical source of 

employment and income in Rwanda. 
38 

Central America 

Since 1974, OPIC has committed $3.2 billion in support of over 370 projects in Central 

America. Additionally, OPIC has invested over $1 billion in regional investment funds that 

invest in both Central and South America. 

OPIC’s portfolio in the seven Central American countries of Belize, Costa Rica, El Salvador, 

Guatemala, Honduras, Nicaragua, and Panama, currently totals $800 million across 46 projects. 

Through sustainable investments in communities and resources, OPIC supports the 

Administration’s commitment to prosperity in the region. Existing OPIC initiatives and new 

projects especially focus solutions on several areas including: 

 Financial services including microfinance and credit for small and medium enterprises 

(SMEs) and 

 Infrastructure development including in energy, transportation, and housing 

 Active projects in OPIC’s current portfolio in Central America include: 

 SME Credit – $25 million in financing to strengthen the capital base of Lafise Group 

Panama, Inc. and its subsidiaries in Costa Rica, Honduras, and Panama. The financing 

allows Lafise to expand its retail, corporate, and SME lending portfolios. By providing 

access to longer-term credit than is generally available in the region, Lafise helps smallscale farmers, manufacturers, and retail business owners grow their ventures more 

quickly. 

 Infrastructure (Housing) – $72 million investment guaranty to a mortgage loan 

company in El Salvador. OPIC’s support will enable the company, La Hipotecaria S.A. 

de C.V., to securitize mortgages issued in El Salvador and access capital markets in both 

Panama and the United States. La Hipotecaria will use the funds from the securitization 

to originate new affordable mortgages with an average size of $30,000. 

 Infrastructure (Transportation) – $53 million in financing for the modernization and 

operation of Central America’s second largest airport, Juan Santamaria International 

Airport, in Costa Rica. Juan Santamaria receives 85 percent of all international arrivals in 

Costa Rica. 
39 

Appendix E: Presidential Policy Directive on Development 

On September 22, 2010, the President signed a first of its kind Presidential Policy Directive on 

Global Development.10 The directive provides guidance for Federal agencies on the President’s 

strategic direction. The table below summarizes some of the key ways in which OPIC provides 

unique value in catalyzing the private sector in support of the Policy Directive’s three pillars. 

Pillars Key Approaches OPIC’s Role 

A policy focused on sustainable 

development outcomes that places a 

premium on broad-based economic 

growth, democratic governance, gamechanging innovations, and sustainable 

systems for meeting basic human 

needs; 

 Foster the next generation of 

emerging markets by enhancing our 

focus on broad-based economic 

growth and democratic 

governance. 

 Game-Changing Innovations 

 Private sector-led growth is most likely to 

be self sustaining because it focuses 

capital on efficient uses.

 OPIC combines creative and flexible 

financial tools with the innovation of the 

U.S. private sector 

A new operational model that positions 

the United States to be a more effective 

partner and to leverage our leadership; 

 Be more selective about where and 

in which sectors it works. 

 Underscore the importance of 

country ownership and 

responsibility 

 Leverage the private sector, 

philanthropic and 

nongovernmental organizations, 

and diaspora communities. 

 Strengthen key multilateral 

capabilities 

 Drive our policy and practice with 

the disciplined application of 

analysis of impact 

 OPIC leverages the capital and skills of the 

private sector and U.S. business in support 

of private-sector-led initiatives.

 By mobilizing and shaping Foreign Direct 

Investment and private resources – OPIC 

multiples Federal dollars. 

 OPIC collaborates with DFI’s and bilateral 

aid agencies.

 OPIC’s projects are aligned with private 

sector goals and thus are self-targeting to 

efficient uses of capital.

A modern architecture that elevates 

development and harnesses 

development capabilities spread across 

government in support of common 

objectives. 

 Elevate development as a central 

pillar of our national security policy, 

equal to diplomacy and defense, 

and build and integrate the 

capabilities that can advance our 

interests. 

 Establish mechanisms for ensuring 

coherence in U.S. development 

policy across the United States 

Government. 

 Foster the integration of 

capabilities needed to address 

complex security environments. 

 OPIC’s three-pronged mission of 

development, foreign policy, and support 

for U.S. businesses supports this approach

 The private sector provides the bulk of 

external resources to the developing 

world. A modern architecture requires a 

Federal capability to influence these flows.

 The long run solution for complex 

humanitarian and security challenges 

inevitably requires broad based economic 

development. 

 OPIC has unique tools and skills within the 

Federal government to support and 

mobilize private capital.

 

10 http://www.whitehouse.gov/the-press-office/2010/09/22/fact-sheet-us-global-development-policy
40 

Appendix F: The Partnership for Growth 

The Partnership for Growth (PFG) puts into practice the principles of the new Policy Directive to 

drive economic progress and achieve sustainable economic growth. The initiative focuses on 

four top-performing low-income countries: El Salvador, Tanzania, Ghana, and the Philippines. 

OPIC is central to the President’s development policy through the Partnership for Growth. The 

PFG process recognizes the critical role of the private sector as a driver of economic 

development, and because OPIC works with the private sector, we foster a business-to-business 

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. 

The PFG process has targeted specific constraints to growth in each country and, once complete, 

should help remove some of the barriers to investment faced by private companies. OPIC’s 

financial and risk mitigation tools will be essential to supporting increased investment into these 

four priority countries and delivering on the Administration’s commitment to supporting broadbased economic growth. OPIC’s expertise in supporting investments in renewable energy and 

financial services will be especially valuable in addressing the access to power constraint which 

is being targeted in Ghana and Tanzania, as well as access to credit highlighted in Ghana. 

OPIC is open for business in all four PFG countries. In Ghana and Tanzania, OPIC enables 

agricultural productivity, helps expand small and medium enterprise lending, and furthers 

investments in critical infrastructure. Since 1975, OPIC has invested more than $1.3 billion in 44 

projects in Ghana with a current portfolio of $832 million in 8 projects. Since 1984, OPIC has 

invested more than $164 million in 14 projects in Tanzania with a current portfolio of $29 

million across 6 projects. In the Philippines, OPIC furthers investments in critical infrastructure 

projects including those that promote clean technology and renewable resources. Since 1974, 

OPIC has invested more than $2.6 billion in 145 projects in the Philippines, with a current 

portfolio of $389 million across 5 projects. Since 1976, OPIC has invested more than $358 

million in 35 projects in El Salvador, with a current portfolio of $65 million across 3 projects. 
41 

Appendix G: GPRA Annual Performance Plan/Report 

 

11 Projects that receive a score in the range of 25-59 are considered developmental.

12 Targets are based on an anticipated reduction in CO2 emissions, from 2008 baseline levels by 2018.

GPRA Strategic 

Goal

Strategic 

Objective

Performance 

Plan 

Outputs and 

Outcomes

FY 2013 FY 2014 FY 2015

Target Actual Target Target

Grow Portfolio 

Impact 

Aim for high 

development 

impact 

Projects with 

development 

scores 

evidencing 

50 5911 50 50 

Increase 

commitments 

Millions of 

dollars in finance 

and insurance 

project 

commitments 

$3,750 $3,927 $3,000 $4,200 

Increase 

Environmental 

Benefit 

Maintain focus 

on renewable 

resources and 

energy efficiency 

Millions of 

dollars in finance 

and insurance 

commitments in 

projects that are 

dedicated to 

renewable 

resources and 

energy efficiency 

$750 $1,211 $1,000 $1,000 

Minimize GHG 

emissions across 

portfolio 

Millions of tons 

of CO2 emitted 

by projects in the 

OPIC portfolio12

36 35 36 36