Congressional

Budget 

Justification

Fiscal Year 

2017

Overseas Private Investment 

Corporation
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Table of Contents

PRESIDENT’S LETTER ______________________________________________________________________ii

OPIC’s Business Model ______________________________________________________________________ 1

OPIC’s Budget Request Empowers American Businesses in the Global Economy __________ 1

OPIC is Self-Sustaining ___________________________________________________________________________ 1

OPIC as a Lean and Efficient Resource Multiplier _____________________________________________ 3

Administrative Budget Request ____________________________________________________________ 4

Increased personnel to Scale, Originate and Evaluate more Projects ________________________ 5

Improved process for evaluating and monitoring projects ___________________________________ 6

More procurement for independent audits, evaluations, and inspections __________________ 6

Enhanced transparency _________________________________________________________________________ 7

Internal Operations Improvement _____________________________________________________________ 8

Promoting U.S. Business Growth and Development _____________________________________ 10

Supporting U.S. Small Businesses and America’s Global Competitiveness ________________ 10

OPIC Advances U.S. Foreign Policy Priorities ____________________________________________ 11

Power Africa ____________________________________________________________________________________ 11

OPIC in Fragile and Post Conflict Nations ____________________________________________________ 12

Support for Middle East and North Africa ___________________________________________________ 13

Greater Emphasis on Asia and the Pacific ____________________________________________________ 13

Spotlight on Central America and the Caribbean ____________________________________________ 14

Investing in Renewable Resources ___________________________________________________________ 14

Resources for Limited Partner Authority ________________________________________________ 16

APPENDICES ______________________________________________________________________________ 17

Appendix A: Proposed Legislation ____________________________________________________________ 17

Appendix B: OPIC Policy Monitoring Methodology _________________________________________ 19

Appendix C: Measuring Development Impact Matrix _______________________________________ 22

Appendix D: OPIC Collaboration with Other Federal Agencies _____________________________ 23

Appendix E: OPIC Activity in Selected Countries and Regions _____________________________ 25

Appendix F: Creating Innovative Products for Companies and Investors _________________ 31

Appendix G: Breakdown of FY 2017 Budget Request _______________________________________ 33

Appendix H: Budget Proposal Detail - OPIC Administrative Expenses ____________________ 34

Appendix I: GPRA Annual Performance Plan/Report _______________________________________ 35

Appendix J: Policy Directive on Global Development _______________________________________ 36
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PRESIDENT’S LETTER

As the U.S. government’s development finance institution, the Overseas Private 

Investment Corporation mobilizes private investment that creates jobs and brings 

transformative solutions to bear on reducing poverty in the developing world while 

stabilizing economies in fragile markets. Projects that OPIC currently supports are having 

major development impacts, especially in low-income and conflict-affected countries. 

For example: 

 Education: Over 120,000 students are enrolled in OPIC-supported primary and 

secondary schools, and more than 25,000 students in higher education. 

 Water: OPIC projects are producing 158 billion liters of water each year. 

 Inclusive Finance: OPIC partners are providing access to finance to tens of 

millions of small and medium-sized and microfinance borrowers. 

OPIC is lean and effective government at its best. It is a force multiplier: for every $1 

dollar of OPIC project commitments, the Agency mobilizes $2.60 from other sources. 

In FY 2015, for example, OPIC committed a total of $4.4 billion in loans, guarantees and 

insurance and, for the 38th year in a row, returned funds to the U.S. Treasury for deficit 

reduction — proving the durability of its self-financing approach. Since 2010, OPIC has 

contributed $1.6 billion toward deficit reduction. 

Over the past five years, OPIC has invested deeply in operational reforms and 

upgrades that have created a very solid foundation for further scaling the Agency. 

OPIC has modernized its risk management systems, credit analysis, internal controls, 

IT and data management systems, and other assets. It has streamlined policies and 

automated processes, reducing application “cycle times” and improving staff and 

client efficiencies. For this, OPIC has received top awards and recognition for 

innovation among all U.S. Government agencies for four years running. However 

much more needs to be done. 

OPIC’s mandate is to catalyze private capital for sustainable economic development. The 

Agency is a powerful tool to concretely advance U.S. foreign policy and development 

goals: 

 National Security: One-third of OPIC’s portfolio is in post–conflict nations or 

areas currently vulnerable to conflicts, such as Jordan, Ukraine, Georgia, Iraq, 

Afghanistan, and the West Bank. 

 Power Africa: OPIC’s partnership with the private sector is an essential part of 

this signature Presidential priority. OPIC has exceeded its initial target of $1.5 

billion in Power Africa commitments a full two years ahead of schedule, and has 

an ample pipeline to reach its enhanced goal of an additional $1 billion in Power 

Africa commitments by 2018. 
iii

 Climate Finance: In the last five years, OPIC has had a tenfold increase in 

commitments to renewable energy projects in support of U.S. companies 

investing in growing markets. Support for the transition to a low-carbon economy 

has been, and will continue to be, central to U.S. leadership in this area.

 Central American and the Caribbean: OPIC is a key implementing agency of 

the Administration’s Caribbean Energy Security Initiative (CESI) and has 

committed over $100 million to support two renewable energy projects. 

Additionally, OPIC will play an important role in the whole of government effort 

to expand U.S. engagement in Central America. 

As the emerging markets face the dual challenge of slower growth and a dramatic drop in 

oil prices, OPIC will also be fully prepared for its historical counter-cyclical role, 

providing financing when ventures in developing nations need it the most. OPIC’s 

longstanding emphasis on thorough due diligence, extensive credit assessment and 

prudent risk management makes the Agency a strong, highly valued and high-impact 

partner in such times. Indeed, during times of adverse market conditions OPIC often 

experiences increased client demand. 

The role of the private sector is now universally recognized as essential and central to

development. Other nations have acted on that premise. Over the past decade, investment 

by the DFI community — DFIs like OPIC and the DFIs of Germany, Japan, China and 

others — grew at several times the rate as traditional development aid. 

Development finance has long-term economic implications for the competitiveness of 

firms and job creation, as well as the national interest of the U.S. Over the next decade, 

one billion emerging-market consumers will be joining the middle class.1

Most G7 countries have a bilateral development finance institution, and several new 

multilateral ones are being created, such as the New Development Bank and Asian 

Infrastructure Investment Bank. In this context, OPIC, as the U.S. government’s 

development finance institution, has a critical role to play in continuing to uphold and 

embody our nation’s highest values and best practices in environmental policies as well 

as labor, human rights and other social issues.

Put simply, the U.S. is far better positioned to make a profound difference in 

development finance than other nations. America has scores of companies that lead in 

creating and leveraging life-changing technologies for the developing world. It is 

committed to an open, rules-based, sustainable and inclusive economy. And it is 

committed to replacing entrenched poverty with self-sufficient economies. All this points 

toward a greater emphasis on the use of the private sector for development — OPIC’s 

mandate. As President Obama has said: 

“Aid alone is not development. Development is helping nations to actually develop —

moving from poverty to prosperity ... what’s needed most right now is creating the 

conditions where assistance is no longer needed." 
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At OPIC, we support American innovation, technology, engineering, business, and 

standards to the farthest corners of the developing world. OPIC is demonstrably effective 

and efficient government. OPIC is the embodiment of the development model espoused 

by President Obama. OPIC is development that pays for itself. 

OPIC Management respectfully recommends and requests your approval of the attached 

budget. It reaffirms the pragmatic estimate of the Agency’s needs and potential. We seek 

your continued guidance and support in advancing the work before us. 

Elizabeth L. Littlefield 

President and CEO
1

OPIC’s Business Model

OPIC’s Budget Request Empowers American Businesses in the Global Economy

OPIC helps to ensure that the emerging markets become ever greater opportunities for 

American businesses, and that their investments address the widespread challenges to 

meet the basic needs of such nations in efficient, innovative ways. 

The rate of growth in the emerging market economies has exceeded and is projected to 

continue to exceed the growth rate of the advanced economies.2 OPIC has played a 

pivotal role to ensure that America’s businesses — especially small businesses — have 

opportunities to participate in such growth. On average, almost three-quarters of OPIC’s 

transactions involve small and medium-sized businesses. 

Each dollar that OPIC invests to promote development critical to America’s foreign 

policy also creates opportunities for American businesses. 

OPIC is Self-Sustaining

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

order to operate like 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. These receipts enable OPIC to generate more inflows than outflows, and thus 

help reduce the federal deficit. 

OPIC’s structure — its authorizing legislation, its status as a government-owned 

corporation, its internal procedures, down to the design of its accounting systems and its 

budget — reflects the principle that OPIC is intended to be run on a self-sustaining basis. 

OPIC’s operations generate receipts, create capital, and set aside resources for the 

activities of the business. OPIC invests its earnings in Treasury securities, and thus lends 

to the Treasury. OPIC’s reserves further insulate the Treasury from the risk that OPIC’s 

portfolio might generate losses requiring additional appropriations. 

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

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

FY 2015, OPIC’s positive effect on the Federal budget totaled $434 million — the 38th 

consecutive year that OPIC has contributed to reducing the Federal deficit. 

3

OPIC as a Lean and Efficient Resource Multiplier 

For the period 1974-2015, for each $1 of insurance and finance commitments, OPIC 

calculates that $2.6 was mobilized in external capital. OPIC committed over $77 billion 

in insurance and finance commitments in this time period, and other partners committed 

$200 billion. Put another way, every $1 of OPIC’s administrative budget supports $222

in investment. OPIC has proved to efficiently use Federal dollars to mobilize other 

external resources. 

In FY 2015, OPIC committed to support 100 new projects in 38 countries. Total 

projected investment in these projects by OPIC and its fellow investors is $14 billion. 

OPIC offers project financing and guarantees, and political risk insurance to companies, 

investors, and private equity investment funds. The 100 new projects that OPIC 

committed in FY 2015, included 74 finance projects, 4 insurance projects, and 22

investments in portfolio companies by OPIC-supported investment funds. 
4

Administrative Budget Request 

In continued recognition of the critical and growing role of the private sector in 

international development, OPIC is requesting an increase to the Agency's Administrative 

Budget to $88 million. 

The Budget also seeks $20 million in credit subsidy. OPIC continues to require an 

appropriation for credit reform subsidy as some transactions and modifications of 

existing transactions will require use of positive subsidy, even though OPIC’s overall 

impact is to generate negative subsidy. 

OPIC’s FY 2017 budget request, if approved, will bolster OPIC’s ability to mobilize 

private capital in developing nations, many of which are low income and fragile states, 

and empower OPIC to partner with American businesses to compete more effectively in 

the global economy, all while reducing the federal budget deficit.

The proposed budget will allow OPIC to commit an estimated $4.85 billion in loan 

commitments and insurance contracts and generate estimated collections of $449 million. 

These collections are comprised of receipts from OPIC’s finance and insurance programs 

as well as interest on its holdings in Treasury securities.

This budget will support additional staff to address these challenges, deliver on OPIC’s 

mission, and respond to Administration initiatives, all while continuing OPIC’s record as 

a self-sustaining agency. 

The proposed budget increase will allow OPIC to: 

 Hire additional personnel to originate, evaluate potential projects and monitor 

active projects. 

 Procure more independent audits, evaluations and inspections to reinforce risk 

management and guard against fraud. 

 Increase transparency by implementing new data collection systems and building 

interactive online tools to share the data with the public. 

 Upgrade information technology to improve internal operations, streamline 

acquisitions, deliver services, and enhance performance. 

6

Improved process for evaluating and monitoring projects 

A recent report from the Government Accountability Office (GAO) 3recommended that

OPIC further strengthen its project monitoring for compliance with OPIC’s policies. 

OPIC agreed with the recommendations and will be implementing them. In order to 

thoroughly respond to GAO findings, OPIC’s Office of Investment Policy will need

additional resources. 

In FY 2015, GAO performed an intensive audit and analysis of 21 OPIC projects on three 

continents. GAO personally visited most of these projects, speaking with project 

personnel and independent third parties, as well as reviewing and auditing many aspects 

of the transactions. Sourcing and origination were examined, along with character risk 

protections, due diligence processes, internal clearance procedures, and fidelity to OPIC’s 

statutory and administrative requirements. OPIC’s post-disbursement monitoring of the 

projects’ financial performance and policy compliance was also analyzed. 

In most of these areas, GAO made no recommendations for improvement. However, 

while acknowledging recent OPIC improvements in monitoring projects for 

environmental, social, labor and human rights risks, GAO did recommend two steps to 

further strengthen that process: 

First, that timeframes and deadlines be established for filing site visit reports to OPIC 

projects with OPIC’s Executive Committee, and 

Second, that current policy compliance monitoring processes be assessed to ensure that 

risks associated with client-reported data and limited site visits for monitoring are 

acceptable for meeting OPIC’s monitoring policy goals. 

OPIC agreed with the GAO findings. To address GAO’s concerns, OPIC is examining 

possible risks associated with its client-reported data, as well as the procedures for 

conducting and subsequently analyzing site visits. In order to increase its risk 

management beyond current capacity, OPIC will need to increase staffing, site visits, and 

operational support. 

More procurement for independent audits, evaluations, and inspections 

OPIC is requesting increased appropriations for the administrative costs to reinforce risk 

management and guard against fraud. OPIC continues its process of technological 

upgrades to attain private-sector-level best practices in data management. This will 

benefit OPIC’s internal monitoring and evaluation, as well as OPIC’s customers, colenders and insurers, its external co-financers, auditors, and its Congressional oversight 

panels. 

Since OPIC was created in 1971, the agency has been under the jurisdiction of the 

Inspector General of the United States Agency for International Development (USAID 

IG). The USAID IG has the right to perform inspections and investigations as the IG 

deems necessary. As in past years, OPIC has entered into an annual memorandum of 
7

understanding with the IG to provide reimbursement for a series of audits performed 

during FY 2016. USAID IG will continue to conduct financial and performance reviews 

of OPIC.

Portfolio Risk Management – OPIC manages its $20 billion portfolio on systems whose 

costs represent a small fraction of that portfolio. OPIC’s current accounting, reporting, 

and credit reform systems are technologically dated. To attain modern industry standards, 

OPIC will need improved technology to support its analytic and monitoring capabilities. 

In addition, a growing portfolio requires increased monitoring of development impact. 

OPIC would like to conduct deeper close-out reviews of projects as they terminate, 

including their financial and development impact performance. These reviews would be 

structured to generate lessons learned for future projects. This would also bring OPIC 

more in line with other development finance institutions. To follow up on the GAO 

assessment, OPIC would also like to build a platform that merges projected, client 

reported data, and site monitoring data, to better assess how well the project achieved its 

intended and estimated development impact. This would require new IT infrastructure 

and software systems to consolidate and integrate development impact data for greater 

ease of use. 

Reporting Systems –Treasury, OMB, OECD, and external audit requirements necessitate 

operating systems and technology management upgrades. Compliance with governmentwide requirements, continuous operations and maintenance, and a needed rolling 

replacement of obsolete and unreliable equipment require additional resources. Meeting 

new reporting requirements calls for the development of enhanced reporting solutions.

Systems are currently being enhanced to provide or improve reporting capabilities with 

data analytics and visualization, and to enable accurate corporate reporting and more 

informed decision-making, but much more needs to be done. 

Enhanced transparency 

OPIC will increase transparency by implementing new data collection systems, building 

interactive online tools to share the data with the public and make OPIC products more 

accessible. 

Transparency Initiatives – OPIC would like to make public, in a more accessible way, the 

projected and actual development impact and U.S. economic impact data it collects, to 

the extent allowable under business confidentiality requirements. Enhancing current 

systems and building interactive online tools and graphic presentations to present this

data visually will require additional staff with new skillsets. 

Accessibility to services – The development and implementation of on-line financing and 

insurance application forms through a consumer portal will improve the customer 

experience and ultimately the likelihood of customers seeking OPIC’s product lines. 

Streamlined customer experience – Today, OPIC data is managed in different parts of 

the organization, so synthesized customer data is not easily retrievable and is challenging 

to generate on a case-by-case basis. OPIC would like to create a “one-stop-shop” 
8

customer portal offering a streamlined customer interface where all OPIC products and 

associated activities are available. The customer could submit or request information with 

ease, and self-servicing account management would be the norm. This critical upgrade 

will improve the customer experience, customer data management, internal data 

management and processes, and overarching data integration across OPIC products. 

Internal Operations Improvement 

OPIC will use additional resources to upgrade information technology to improve 

internal operations, streamline acquisitions, deliver services, and enhance performance. 

Updating and streamlining internal policies – OPIC continues to update, clarify, and 

harmonize the Agency’s transaction guidelines in order to more easily meet the demands 

of companies and investors and to 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. This advance in OPIC’s 

capabilities opens the door for further improvements. 

Legacy systems replacement – OPIC continues to replace dated technology with new 

systems to meet Federal audit controls, enhance OPIC’s ability to report externally, and 

to foster internal productivity and efficiency. 

Support for credit reform – OPIC’s existing data structures and capabilities require 

sophisticated programming to track, analyze and report data at an individual loan level. 

Data integration and management will require new tools. 

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. OPIC continues to improve upon 

IT compliance implementing baseline configurations, vulnerability assessment and 

remediation, data loss prevention, and other mitigating processes to ensure the security 

and privacy of the OPIC network environment. 

Cycle time – By simplifying the process of reviewing applications, OPIC continuously 

improves the typical approval cycle time. It also has negotiated a cooperative agreement 

with fellow development finance institutions such as the International Finance 

Corporation, to harmonize much of the loan documentation, due diligence, and legal 

processes. 

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. OPIC’s increased use of master 

contracts will save time and improve client services, minimizing redundancies in the 

contracting process. These contracts, analogous to those offered elsewhere in the federal 
9

government, have been utilized by a number of OPIC clients, such as relief organization, 

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

Data Management – OPIC has adopted Salesforce (Insight), a cloud-based platform to 

support its pipeline application that includes Finance, Funds, Legal Affairs, Insurance, 

and Portfolio Services among others to enhance efficiencies and standardization. The 

platform significantly reduces data entry and manual processes by increasing efficiency 

through streamlined business processes and integration across the pipeline and portfolio 

systems. It increases pipeline visibility by providing a 360 degree view of all pipeline 

projects and activities, self-servicing dashboards and reports, significant increase in audit 

trail capabilities and improved accessibility, transparency and quality of data. 

Implementing and deepening the use of this platform lies ahead. 

Transition to the Cloud – OPIC has adopted a “cloud-first” approach and is continuing to 

integrate functional elements such as e-mail, knowledge management, and collaboration 

technologies within the Cloud. Initial success with the transition of e-mail and the 

pipeline management application (Insight) to cloud-based solutions set the framework for 

long-term adaption of cloud-based services. This will require planning, management and 

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

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

vendors. 

Trimming processes and paperwork – Historically, more than half of all applications for 

finance or insurance 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 

investment fund application has been reduced by 30 percent, and the finance application 

has transitioned to a web-based “smart” system. OPIC continues to work on reducing 

application acceptance time by 20 percent by avoiding 90 percent of application errors. 

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

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

improve internal operations, streamline acquisitions, deliver services, and enhance 

performance. 

Migration of the OPIC electronic mail systems to a cloud-based service provides access 

anywhere, anytime to a mobile workforce, expanding functionality and reliability of 

services and improving efficiencies across the lines of business. 

Design and functionality enhancements of the customer portal have improved customer 

satisfaction, streamlined processes and minimized issues due to outdated services and 

applications.

OPIC is always looking for ways to improve workflow processing, and reducing manual 

and paper based processes.
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Promoting U.S. Business Growth and Development 

Supporting U.S. Small Businesses and America’s Global Competitiveness

U.S. companies, both large and small, seek to compete in new markets but are often faced 

with a lot of challenges, including scarcity of investment capital during these tough 

economic times. 

This challenge is particularly acute for U.S. small businesses. OPIC opens opportunities 

for eligible U.S. businesses by offering affordable project financing and political risk 

insurance for investments in emerging markets. 

OPIC is particularly focused on supporting U.S. small businesses, not only because it is 

part of OPIC’s mandate, but because U.S. small businesses are among the most valuable, 

innovative, and capable partners in achieving OPIC’s development goals. U.S. small 

businesses employ half of all private sector workers and account for approximately 99 

percent of all enterprises. Over the last five years, OPIC has committed $7.9 billion in 

finance and insurance to more than 343 new projects with significant involvement of U.S. 

small businesses. In FY 2015, OPIC continued its focus on U.S small businesses. In 

addition to financing and insurance received from OPIC, U.S. small businesses also 

benefit through procurement: new FY 2015 projects are expected to procure 

approximately $144 million over five years from 53 small businesses located in 13 states 

and the District of Columbia. 

OPIC’s popular Expanding Horizons workshop series is the cornerstone of its small 

business outreach effort. For several years, OPIC has been traveling around the country 

to inform small businesses about the finance and insurance tools that can help them 

expand into high-growth developing markets. Since its inception in 2006, Expanding 

Horizons has educated over 3,000 U.S. small businesses and entrepreneurs. 

12 

OPIC convenes key stakeholders to accelerate the complicated multi-party financial transactions. 

The agency was a key participant in the August 2014 U.S.–African Leaders Summit, hosting and 

facilitating business-to-business and business-to-government meetings designed to foster greater 

investment in Africa by focusing on specific projects and reforms that would foster growth. To 

underscore its commitment OPIC committed up to $91 million in direct financing to support a 

53MW modern, thermal plant in Cap des Biches, Senegal and $50 million in direct financing to 

support construction and operation of the Azura-Edo power plant project near Benin City in Edo 

State, Nigeria. The 459 megawatt Azura-Edo power project is an open cycle gas turbine power 

station that represents the first phase of a potential 1,000MW power plant facility. OPIC also 

committed $233 million in direct financing to support the construction and operation of the 100 

MW Kipeto wind power project located in Kajiado, Kenya, a rural area 40 miles south of 

Nairobi. 

OPIC in Fragile and Post Conflict Nations 

Approximately $6.9 billion of OPIC’s current $20 billion portfolio, more than one-third - is in 

post-conflict nations — nations that border on conflicts and must deal with their spillover effects, 

or nations that are vulnerable to conflict because of persistent risk factors such as ethnic tensions, 

extremism or illicit activities. These priority countries for OPIC include nations such as 

Afghanistan, Iraq, Jordan, Egypt, Ukraine, Georgia, Tunisia, and the West Bank. 

The link between private sector investment, economic growth and national security is wellestablished. There is overwhelming evidence pointing to a strong link between poverty and 

violence. Low per-capita income is “one of the most robust explanations for the outbreak and 

duration” of conflict.5 Poor nations, on average, experience a violent regime change every seven 

years; the average for the richest 10 percent of nations is every 60 years. Today, more than 800 

million people around the world still live in extreme poverty, on less than $1.25 per day6. 

Roughly 400 million of the extremely poor live in fragile states, several of which possess 

weapons of mass destruction. Further, the odds of conflict and terrorism are higher when the 

poor are predominantly young, which is precisely the pattern that exists in the ‘Arab Spring’ 

nations and post-conflict and fragile nations of strategic interest to the United States. OPIC aims 

to provide U.S. companies with otherwise unavailable market based finance so that they can 

invest in ways that stabilize communities and nations. 

OPIC is constantly reassessing and reevaluating its approaches to post-conflict or conflictvulnerable nations. Several lessons are clear. Mobilizing private investment into these locations 

takes more than addressing issues of infrastructure, currency stability, safety, or encouraging 

talented refugees to return. It takes time for investors to assess these markets, obtain technical 

assistance, assemble local partners, successfully press for necessary investment climate reforms, 

secure political risk insurance, and of course work with co-investors such as OPIC, who are 

willing to take a long view with their capital. OPIC has applied this hard-won experience. 

Thriving, stable nations that are now staunch U.S. allies and partners in commerce, military, and 

foreign policy were once fledgling, unstable economies where OPIC previously supported 

frontier market investments. 
13 

OPIC’s work in post-conflict countries helps them to stabilize and grow their economies while 

also supporting U.S. foreign policy priorities. OPIC’s strategic, economic and moral purpose of 

advancing markets through long-term investment by private business, investment contributes to 

stability, improves the lives of people in developing nations and addresses critical needs. 

See Appendix E: OPIC Activity in Selected Countries and Regions for details about specific 

projects. 

Support for Middle East and North Africa 

In response to the Arab Spring, OPIC pledged $2 billion in financial support for private 

investment in the Middle East and North Africa and an additional $1 billion specifically for 

Egypt. OPIC responded quickly to the sweeping changes taking place throughout the region, and 

within six months, OPIC’s Board approved $500 million to support lending through local banks 

in Egypt and Jordan to small businesses, which are the engines of employment and growth. 

OPIC continues to make progress towards these two commitments, with more than $1.9 billion 

in financing, guarantees, and insurance committed to date. This support has enabled new 

investment in critical sectors including infrastructure, energy, and financial services support for 

SMEs. In Jordan, for example, two OPIC-financed power plants now collectively provide 25 

percent of that country’s electricity. As of late 2015, Jordan was home to an estimated 800,000 

refugees and asylum seekers from Syria and Iraq. Jordan has been one of the most waterdeprived countries in the world and there is a high cost and time commitment to build 

infrastructure to transport clean water. OPIC provided financing and political risk insurance to 

support construction of the 202-mile Disi Water Co. pipeline running from the aquifer in 

southern Jordan to Amman. 

Greater Emphasis on Asia and the Pacific 

In order to support the U.S – Asia Pacific Comprehensive Energy Partnership, in the Asia Pacific 

region, OPIC focuses in four areas: renewables and cleaner energy, markets and 

interconnectivity, the emerging role of natural gas, and sustainable development. 

In 2014 OPIC opened a new office in Bangkok, Thailand, under the auspices of the Asia Pacific 

Clean Energy Program, where OPIC is to provide $1 billion in financing, political risk insurance 

and private equity funding for sustainable power and energy infrastructure projects in the AsiaPacific region. OPIC’s presence in the region has facilitated both much improved economic 

diplomacy coordination with other U.S. Government departments and agencies, as well as 

broader business development and engagement with the private sector. This has already resulted 

in an increased pipeline of transactions including a $150 million to support Indonesia’s 

renewable energy objectives and a $400 million loan to support Burma’s modernization and 

expansion of its telecommunications infrastructure. In 2015, OPIC also provided a $2.5 million 

loan to allow Quantum ID Technologies Inc. to invest in an air cargo management system which 

will improve the competitiveness of the air cargo industry in the Philippines, and a $3.7 million 

loan to Big Tree Farms which will support the expansion of its sustainable and socially 

responsible farming operations in Indonesia. 
14 

Spotlight on Central America and the Caribbean 

Since 1974, OPIC has committed an annual average of more than $760 million to the region, in 

sectors ranging from small business lending, power generation, and low-income mortgage 

lending. 

OPIC plays an important role in the whole of government effort to expand U.S. engagement in 

Central America. This budget, therefore, includes $2 million for project promotion and support 

in Central America. 

In Guatemala, OPIC committed a loan for $7.5 million to Grupo Multivistas, S.A. to finance the 

construction of an estimated 1,000 new residential units in second tier markets. It is estimated by 

the Guatemala Construction Chamber that the country is currently suffering from a 1.5 million 

housing deficit, compared to a total housing stock of approximately 3 million. OPIC plays an 

important role in housing development in the Central American region. 

OPIC also plays a leading role to support clean energy development in the Caribbean. Not only 

do many Caribbean countries offer excellent natural conditions for wind and solar power, but the 

countries are otherwise almost totally dependent on fuel imports, often from unstable nations 

such as Venezuela. 

OPIC provided financing to the AIC Caribbean Fund, which financed the construction of the 

first wind turbine farm in the Dominican Republic, a mid-scale, grid-connected facility capable 

of generating 25.2 megawatts. At peak operation, the wind facility is capable of offsetting as 

much as 62,500 tons of carbon dioxide (CO2) annually – equivalent to taking more than 13,000 

automobiles off the road. The project helped prove the viability of wind energy in the Dominican 

Republic, which today is on track to have 300 megawatts of installed capacity from wind 

turbines by the end of 2016. 

In FY 2016, OPIC projects to commit nearly $350 million to projects to advance the cause of 

development in Central America and the Caribbean. Latin America and the Caribbean continue 

to represent the largest proportion of OPIC’s portfolio. 

Investing in Renewable Resources 

In FY 2015, OPIC committed almost $1

billion to projects that advance a 

sustainable, cleaner, and more secure 

energy supply. Since making investments 

in renewable resources a top priority in 

2010, OPIC has seen its activities in these 

sectors (renewable energy, water, 

agriculture, forestry) increase dramatically. 

In FY 2015 alone, OPIC supported 

renewable resources projects in a broad 

range of countries including Costa Rica, 

Jordan, Pakistan, Panama and Uganda. 
15

Many of these projects also support Administration priorities including Power Africa and 

the Caribbean Energy Security Initiative. 

 

OPIC’s renewable energy commitments in Africa span numerous countries, technology 

types, and project sizes. In FY 2015, OPIC committed to wind, solar and hydro power 

projects in Kenya, Nigeria, South Africa and Uganda. OPIC-supported solar projects 

include solar home kits, solar mini-grids with storage, and utility-scale solar projects. 

Consistent with the Electrify Africa Act of 2015, S. 2152, OPIC will continue to partner 

with the private sector to increase access to reliable, affordable, and sustainable power in 

the region. 

OPIC commitments to renewable resources remains instrumental to fulfilling the U.S. 

Government’s commitments to increase funding to address climate change. Between FY 

2010 - FY 2015, in the renewable energy sector alone, OPIC committed over $6 billion 

towards these projects. Private investment alongside OPIC support has further leveraged 

these commitments. For example, in FY 2015, OPIC signed a $400 million loan 

commitment for the Redstone 100 MW CSP project in South Africa with Solar Reserve 

at the Key Forum. OPIC also signed a $15 million loan commitment for the Nova-Lumos 

rooftop solar panel kits project that will reach approximately 70,000 residential and small 

commercial customers in Nigeria using a lease-to-own model. 

Preparing for FY 2016, OPIC is looking forward to another year of substantial renewable 

resource commitments. This continuing trend sends a clear message that the transition to 

a cleaner and more sustainable economy represents massive business opportunities for 

the private sector. 

OPIC is a key implementing partner of the Administration’s Caribbean Energy Security 

Initiative, and in FY 2015 OPIC committed to a 20 MW solar PV project in Jamaica. This 

is the second commitment by OPIC to a renewable project in Jamaica in two years, and 

the second OPIC project since the launch of the Caribbean Energy Security Initiative. As 

noted above, in the broader Caribbean and Central America region, OPIC made 

commitments to three solar projects in Panama and one solar project in Costa Rica — for 

a total of more than $180 million in FY 2015 to renewable energy projects in the 

Caribbean and Central America. 
16

Resources for Limited Partner Authority 

OPIC is seeking to use up to $20 million from its Credit Reform Appropriation and $20 

million in transfer authority to invest in private equity funds that serve the OPIC 

mission. OPIC can only participate in a growing number of private equity funds if it does 

so with the same rights and terms as other equity investors. The requested $40 million 

will allow OPIC to serve as a limited partner (LP) pari passu with other U.S. limited 

partner investors in private equity funds and will thus allow OPIC to fulfill more 

effectively its mission to promote development by facilitating U.S. investment.

While OPIC has existing legal authority7to make such LP investments under its current 

investment funds program, this authority requires an appropriation. OPIC’s current debt 

product limits OPIC’s ability to participate in the emerging markets private equity field. 

OPIC, therefore, seeks a specific appropriation as described above. 

As a Limited Partner (LP), OPIC would be investing alongside private and other official 

LPs in privately managed, limited life investment vehicles that have ownership interests 

in a diversified portfolio of assets. OPIC screens for compatibility and alignment with 

OPIC’s development and policy mission. OPIC would not select the companies in which 

the fund invests, invest directly in any company, or involve itself in the daily operations 

of a company. This LP authority will be used in regions of OPIC’s and the 

Administration’s highest policy priorities, Sub Saharan Africa and the Caribbean. 

An LP equity program would provide many benefits. OPIC would be able to use the 

incremental return of an equity program to diversify its total exposure —increasing 

overall stability of OPIC’s portfolio and enabling, in the long run, greater flexibility at 

OPIC. Finally, as an LP, OPIC would be able to collaborate in a simpler, more standard, 

and more compatible structure with other development finance institutions at the same 

level, nearly all of whom utilize LP authority extensively.
17

APPENDICES 

Appendix A: Proposed Legislation 

Waiver of Requirement to Reauthorize 

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

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, 2017. 

The Consolidated Appropriations Act, 2016 (Public Law 114-113, Sec. 7061(b)) 

extended OPIC through the end of FY 2016. 

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 $88,000,000: 

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. 

Appropriations Legislation: Program Account 

For the cost of direct and guaranteed loans, $20,000,000, 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 2017, 

2018, and 2019: Provided further, That funds so obligated in fiscal year 2017 remain 

available for disbursement through 2025, funds obligated in fiscal year 2018 remain 

available for disbursement through 2026, and funds obligated in fiscal year 2019 remain 

available for disbursement through 2027: 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, of the amounts provided herein, up to $20,000,000 may be 

transferred 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. 
18

Provided further, that funds made available pursuant to the authority of the previous 

provision shall be subject to the regular notification procedures of the Committees on 

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

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

administrative expenses to carry out the credit and insurance programs in the Overseas 

Private Investment Corporation Noncredit Account and merged with said account.

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 2015, 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. 
19

Appendix B: OPIC Policy Monitoring Methodology 

OPIC is undertaking several initiatives to improve its methodology for assessing and 

monitoring development impact. In addition to addressing the GAO recommendations 

noted previously, OPIC is participating voluntarily in targeted working groups with other 

DFIs to develop standardized development impact indicators. Development and adoption 

of standardized indicators by multiple DFIs will reduce reporting burdens on clients and 

allow for more efficient reporting by DFIs. OPIC is also improving its data infrastructure 

and processes to make development impact data more accessible. 

Currently 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 Questionnaires.” Since 1993, all investors have been required to 

complete a Self-Monitoring Questionnaire per the standard OPIC finance agreement and

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. 

Projects selected for site monitoring include: 

 a random sample of projects supported by the agency during a three-year period 

or “monitoring round;” 

 projects supported during this period that are sensitive with respect to U.S. 

economic effects, labor or environment, social, health and safety issues; and 

 projects from other years that have either not been site-monitored 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 and Human Rights - 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, sectors and projects with a higher 

potential for possible worker rights violations.

When projects require a high degree of oversight or in the cases where worker rights 

violations may be difficult to identify during a typical project site monitoring visit, OPIC 

may employ a certified third party labor auditor. Depending on the nature of the project, 
20

auditors could be recruited from the NGO or civil society or through specialized 

consulting firms. 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 

stakeholders 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) impact, projects selected for site monitoring in a given year are prioritized based 

on environmental and social risks at different stages in the project. Environmental and 

social risks 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 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 $80 

billion in U.S. exports and supported more than 280,000 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 also 

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 to significant U.S. export markets). 

U.S Economic Benefits of New 2015 Projects

Total project investment $14.2 billion

U.S investment in projects $4.8 billion

U.S percent of total 34%

Total direct U.S. project exports $264 million

Initial Procurement $181 million

Operational procurement * $82.9 million

U.S jobs supported 401

* Total amount over a 5-year period

OPIC helps support U.S. jobs

 FY 2015 projects are expected 

to result in U.S. procurement 

of $264 million in goods and 

services over five years and

support 401 newly created U.S. 

jobs. 

 No FY 2015 project is expected 

to result in the loss of any U.S. 

jobs.
21

Development Impact - Regarding host country economic impact, projects are reviewed 

across the same criteria as used at the time of project approval. Thus, an “apples-toapples” 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 projection. 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 projections using the same criteria used in 

the project’s original OPIC review. 
22

Appendix C: 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 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, and OPIC is currently reviewing its experience with this revised tool, 

and incorporating some of the harmonized development impact indicators from the DFIs 

in order to continually improve the way it measures local development impact. 

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. 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. 

OPIC’s Development Matrix

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

permanent jobs, the 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 internationally-recognized 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.
23

Appendix D: OPIC Collaboration with Other Federal Agencies 

 Angel Capital, Early-Stage Capital, and Crowding-in

USAID’s broad spectrum of financial services to the private sector help pave the way for 

later stage OPIC support. From USAID’s grant assistance for local consultants, 

cooperatives, and business associations, to early-stage funding of entrepreneurial 

incubation (PACE), USAID projects are akin to angel capital that crowd-in and leverage 

further finance. OPIC’s tools build on and amplify USAID investments. Given the 

complementary capabilities of OPIC and USAID’s Development Credit Authority 

(DCA), our staff meet every quarter to share information about pipeline projects and 

decide how to refer projects to one another, allocate or share investment risks. 

In Lebanon, for example, USAID provided a $1.2 million grant and technical advice for a 

microfinance on-lender, Global Communities (formerly CHF International). Thanks to 

that USAID support, OPIC was able to follow with a $23 million investment guarantee 

for loans to small business, especially those owned by women. 

Access to Finance for Small and Medium Enterprises 

Stronger SME partnership between OPIC and USAID is the Middle East Investment 

Initiative (MEII) Loan Guaranty Facility (LGF) which provide funds to businesses 

through participating Palestinian banks. USAID first helped launch MEII with $5 million 

in technical assistance to train loan officers and improve financial literacy among 

potential borrowers. Once established, OPIC was able to join MEII by committing up to 

$241 million in financing. By the end of 2013, the MEII LGF had approved more than 

600 loans totaling $105.2 million to SMEs in the trading, manufacturing, and services 

sector. These SMEs have directly supported over 2,100 local jobs. About 225 loans, or 

$43 million, had already been repaid, and the default rate stood at a very low 2.1 percent. 

OPIC and USAID Help to Restore Post-Conflict Nations.

USAID invests more than $1 billion annually in helping post-conflict and crisis-affected 

nations restore the cornerstones of their economies through the design and construction of 

energy infrastructure, water systems, roads, telecommunications, as well as schools and 

health facilities. OPIC seeks to encourage private investors to develop the next phase of 

ventures that will amplify these efforts, creating jobs and helping rebuild economies. 

*

* 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.
24

Housing and Basic Services in High-Impact Sectors 

USAID and OPIC often collaborate in public-private partnerships that bring together 

technical assistance and capital for impact in capital-starved sectors that provide basic 

services such as healthcare and education. OPIC has provided a $5.4 million direct loan 

to a USAID project, the Medical Credit Fund, which is partnering with local banks in 

Sub-Saharan Africa to provide loans to SME healthcare providers serving low-income 

populations. 

The Haiti Reconstruction Facility, managed by Development Innovations Group (DIG), a 

U.S. company, is providing financing for the construction and repair of storm-ravaged 

homes and businesses in Haiti. USAID is leading the effort to develop mortgage 

underwriting standards and educate borrowers and builders on “Build Back Better” 

standards of construction and also provide $6 million in grant support while OPIC has 

followed with a direct loan of $17 million to the housing reconstruction facility. 
25

Appendix E: OPIC Activity in Selected Countries and Regions 

Middle East and North Africa (MENA) 

Since 1974, OPIC has committed more than $10.1 billion in support of 505 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 

$3.4 billion across 66 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 $30 million for Siraj 

Private Equity Fund I.

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

facilities for these two countries targeting 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 the Triangle Region, and the North. 

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 trifueled electric power plant designed to meet peak demands for power in Jordan. 

o Water – $250 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. 

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 
26

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 – $372 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 is currently completing due diligence on a number of high-priority projects, 

including: 

o Energy Infrastructure (Wind) – $250 million in financing for a 250 MW wind project 

in Egypt to diversify domestic energy production. 

o Job Creation (SMEs) – $45 million in financing to help local banks in Morocco 

provide loans to SMEs that are confined by limited access to capital. 

 

o Energy Infrastructure (Solar) – $75 million in financing for a U.S. renewable energy 

developer to build a 50 MW solar energy plant in Egypt to diversify domestic energy 

production. 

Iraq 

Since 2004, OPIC has committed nearly $629 million in 32 projects in Iraq. 

OPIC’s portfolio in Iraq currently totals $169 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 SMEs, 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. 
27

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

organization to support its activities and services in Iraq. 

Infrastructure (Housing and Hotel) – OPIC is financing a $26.8 million Atlantic housing 

project for the construction of and lease purchase financing of 900 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. Additionally, in August, FY 2015, OPIC 

approved a $21,000,000 loan for the construction of a Claremont Hilton Doubletree Hotel 

in Erbil. The loan, which is projected to disburse in early FY 2016, will provide much 

needed international-standard hotel space for investors and tourists in the region. 

Pakistan 

Since 1974, OPIC has committed more than $1.9 billion for 131 projects in Pakistan. 

OPIC investment in Pakistan supports the Administration’s economic development 

priorities in the region by focusing on: 

o Access to capital for SMEs 

o Infrastructure development (housing, energy, telecommunications) 

o Humanitarian assistance and disaster response 

OPIC’s portfolio in Pakistan currently totals $892 million across 17 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 
28

now completed and has leasing commitments signed for 46 percent of the office space. In 

FY 2015, OPIC supported $250 million to rehabilitate and upgrade the electricity 

transmission and distribution system including the installation of new substations, 

transmission lines, grid equipment, and smart meters. This investment is one of the most 

significant modernization of the power grid system in Karachi.

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.

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 micro-finance 

bank’s mortgage lending portfolio in connection to a new affordable housing 

development. 

Sub-Saharan Africa 

Since 1974, OPIC has committed over $11.7 billion in support of 537 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; and renewable resources. OPIC’s portfolio in Sub‐

Saharan Africa currently totals over $5 billion across 123 projects. 

Financial Services – OPIC is currently financing over $1.8 billion for projects in financial 

services, including microfinance and credit for SMEs. For example, OPIC is providing 

$12 million in financing for Bangladesh Rural Advancement Committee (BRAC)-owned 

MFIs 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) – $196 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 
29

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 percent, which is significantly better than 

the 35-40 percent 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 percent 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. 

o Renewable Energy – OPIC is currently financing nearly $800 million for 

renewable projects. Sample projects include: 

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 

power-purchase agreement. 

o Wind Power – OPIC has committed $233 million in financing to support 

construction and operation of a wind power project in Kajiado, Kenya. The 100-

megawatt, grid-connected wind power facility located south of Nairobi will be, 

when complete, one of the first utility-scale wind projects to come online in 

Kenya, where over 75 percent of the population still lack access8

to reliable 

electricity. Situated in an area with strong, consistent wind currents, the Kipeto 

project will provide cleaner and more reliable energy to Kenya’s national grid, 

helping to further bolster the country’s growing economy. 

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

agriculture and food security projects. Sample projects include:
30

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) – OPIC issued $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.
31

Appendix F: Creating Innovative Products for Companies and Investors 

Innovation has long been a guiding principle at OPIC, which has built creative deal 

structures and partnerships to address the challenges of investing in the developing world. 

OPIC works with the private sector to find new solutions to old problems, for example:

Impact Investing Initiative – OPIC continues to strengthen its work and leadership in the 

field of impact investment by committing over $3.02 billion in impact sectors in FY 

2015, including $44.5 million in support of SME lending vehicles projects. OPIC’s

President and CEO, Elizabeth Littlefield, serves on the U.S. National Advisory Board for 

the G7 Impact Investing Taskforce. Working with partners in the development finance 

sector, OPIC is helping coordinate benchmark reporting metrics to clearly show how 

environmental and social returns are being achieved. Interagency cooperation with the 

United States Trade and Development Agency (USTDA) and the U.S. Department of 

State though the ACEF program, Global Development Innovation Ventures (GDIV) and 

regular meetings with the Development Credit Authority is yielding an alignment of U.S. 

early stage grant, financing and guarantee capital. In addition, OPIC is working with U.S. 

private investors, foundations, and family offices to help them identify opportunities to 

intervene in challenging impact sectors such as agriculture and early stage financing of 

scalable SMEs. 

Innovative Financial Intermediary Program – OPIC has seen increased demand from fund 

managers and investors for financing to financial intermediaries that contains elements of 

both its financing and investment funds programs, but do not fit squarely into either 

category. In response, OPIC launched the Innovative Financial Intermediary Program 

(IFIP). The first IFIP is a two-year $500 million pilot program to help small and medium 

enterprises through financing for small equity funds, debt funds, hybrid debt-equity 

funds, and greenfield nonbank financial institutions. 

The program supports financial intermediaries who will invest in enterprises in OPICeligible countries through investment vehicles that are smaller than those typically 

supported by OPIC, or where the investment vehicle is deploying capital in the form of 

debt or a combination of debt and equity. 

After the first successful launch of the two-year IFIP pilot, OPIC extended another two 

year pilot program until 2017 to respond to the market demand for small, high impact, 

high innovation funds and fund-like structures. The IFIP pilot has enabled OPIC to 

establish a new process to consider these different structures and respond more 

effectively to them, while leveraging the expertise and best practices within the Agency’s 

finance and investment funds departments. 

Portfolio for Impact (PI) is a pilot program designed to support small projects that have 

great potential to generate a positive social impact but face multiple challenges in 

obtaining financing. The two-year, $50 million program will support a select group of 

projects that meet clearly defined eligibility requirements. OPIC will support these 

projects with loans from $1 million to $5 million with a maximum tenor of 10 years. In 
32

order to monitor and mitigate risk, OPIC will underwrite and monitor these projects 

individually and as part of a portfolio.

Financing for Distributed Generation – OPIC has developed a portfolio approach to 

financing large numbers of small transactions (e.g. rooftop solar or village generation), 

which aggregates the cash flow streams of the individual leases or power purchase 

agreements for repayment of the OPIC debt. In FY 2015, OPIC committed $33.3 million 

to finance four projects using this model, including projects in Africa, Central America, 

and Asia. These regions have high foreign policy priority. In addition, the model makes 

an extensive impact by allowing small customers, both on-grid and off-grid, to generate 

reliable, cost-effective, and cleaner supplies of electricity. 

Green Guaranties – Since its launch last year, OPIC has supported seven wind, solar and 

hydro project financings aggregating over $230 Million using its Green Guaranties 

Program. Green Guaranties are U.S. Government guaranteed Certificates of Participation 

which adhere to the Green Bond Principles of 2014, as amended in 2015, which 

recognize several broad categories of potential eligible projects including renewable 

energy, energy efficiency, sustainable waste management and clean water. 

Insurance protection for regulatory risks – This product 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 violate existing contracts by interfering 

with investors’ ability to utilize available revenue flows. 
33

Appendix G: Breakdown of FY 2017 Budget Request 

Actual Request

Enacted P.L. 

114-113 Request

Resources

Administrative Expenses 62.4 81.7 62.5 87.6

Internal/External audits, Inspections, Evalutions 0.4 1.8 0.3 0.4

Administrative Appropriations 62.8 83.5 62.8 88.0

Credit Program 25.0 20.0 20.0 20.0

Total Appropriations, Gross 87.8 103.5 82.8 108.0

Other Operations

Noncredit - WCPI, Insurance, Discounts 13.0 15.0 15.0 15.0

Insurance Income (20.0) (20.0) (20.0) (30.0)

Negative Subsidy (126.0) (218.0) (218.0) (296.8)

Subtotal (133.0) (223.0) (223.0) (311.8)

Non-Operating Income

Insurance Recoveries (40.0)

Interest on Reserves (148.0) (142.0) (143.0) (137.1)

Subtotal (188.0) (142.0) (143.0) (137.1)

Net Collections (321.0) (365.0) (366.0) (448.9)

TOTAL, OPIC (233.2) (261.5) (283.2) (340.9)

2015 2016 2017
34

Appendix H: Budget Proposal Detail - OPIC Administrative Expenses 

FY 2015

Enacted PL 113-235 Request Enacted PL 114-113 Request

Personnel - compensation and benefits 39.16 44.00 43.50 53.00

Rent, utilities 6.26 10.00 6.25 10.00

Contracts

 Information systems support 5.00 9.00 5.50 7.50

 Miscellaneous contracts 5.97 8.50 3.56 7.60

 Software Maintenance 0.30 1.40 0.30 1.00

 Subtotal, Contracts 11.27 18.90 9.36 16.10

Other

 Communications 0.85 1.50 0.40 1.25

 Supplies and materials 0.91 1.40 0.50 1.25

 Personnel related expenses 0.96 2.00 0.50 1.50

 Training, travel 1.00 1.30 1.08 1.50

 Printing and Reproduction 0.50 0.90 0.13 1.00

 Publications 0.40 0.70 0.50 1.00

 Hardware, software 1.10 1.00 0.25 1.00

 Subtotal, Other 5.72 8.80 3.36 8.50

 Inspector General 0.38 1.80 0.32 0.40

Total administrative expenses 62.79 83.50 62.79 88.00

FTE 260 290 289 350

2016 2017

OPIC FY 2017 Budget Request

Administrative Expenses by Object Class ($ in millions)
35

Appendix I: GPRA Annual Performance Plan/Report 

GPRA Strategic 

Goal Strategic Objective

Performance Plan

Outputs and Outcomes FY 2015 FY 2015 FY 2016 FY 2016 FY 2017

Target Actual Target Actual Target

Grow Portfolio 

Impact

Aim for high 

development 

impact

Projects with development 

scores evidencing high 

development impact9

50 51 50 50

Increase 

commitments

Millions of dollars in finance 

and insurance project 

commitments10

$3,200 $4,386 $4,300 $4,850

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

$1,000 or 1/3 

total 

commitments

$1,084 $1,000 or 25% 

total 

commitments

$1,200 or 25% 

total 

commitments

Minimize GHG 

emissions across 

portfolio

Millions of tons of CO2

emitted by projects in the 

OPIC portfolio11

≤ 36 6.8 ≤ 36 ≤ 36
36

Appendix J: Policy Directive on Global Development 

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

Directive on Global Development.12

 The directive provides guidance for Federal 

agencies on the President’s strategic direction. The table below summarizes the key ways 

in which OPIC catalyzes the private sector in support of the Directive’s three pillars.

Pillars of Presidential Directive Key Approaches OPIC’s Role

A policy focused on sustainable 

development outcomes that 

places a premium on broad-based 

economic growth, democratic 

governance, game-changing 

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 selfsustaining 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 has signed multiple framework agreements in 

partnership with commercial banks and peer 

development finance institutions such as IFC in order 

to end redundant or inconsistent deal sheets and 

accelerate project processing.

 Where possible, OPIC has aligned its environmental 

and social standards with the project finance industry 

standard, the so-called Equator Principles, so private 

sector clients can proceed with a common set of 

terminology and standards.

 OPIC’s impact investing initiative provides financing 

for high-impact ventures – whether fully commercial 

enterprises or social enterprises – that aim for 

development results in the most challenging sectors 

while maintaining financial viability. 

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 collaborates with USAID through a variety of 

initiatives and tools, such as the Development Credit 

Authority. See Appendix B.

 OPIC collaborates with the SBA, Export-Import Bank, 

USTDA, and Commerce for “Expanding Horizons” 

workshops that held educate businesses across the 

U.S. about the full spectrum of financing and support 

available for those interested in pursuing 

opportunities in the global economy.
37

1

“The Wealth of Cities: The Investment Implications of Urban Expansion,” Prudential Investment 

Management, 2015.

2 http://www.imf.org/external/Pubs/ft/weo/2014/01/pdf/text.pdf

3

http://www.gao.gov/assets/680/674142.pdf#page=68

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

5

Justino, Patricia, “Poverty and Violent Conflict: A Micro Level Perspective on the Causes and Duration of 

War” MICROCON Research Working Paper 6, January 2009. This paper includes a useful summary of 

literature over the past 15 years.

6 http://www.un.org/millenniumgoals/poverty.shtml

7

 22 USC 2194(g)(5) 

8 http://data.worldbank.org/indicator/EG.ELC.ACCS.ZS

9 Projects that receive a score in the range of 60-100 are considered highly developmental. 

10All dollar numbers in millions. 

11 Targets are based on an anticipated reduction in CO2 emissions, from 2008 baseline levels by 2018.

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