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TABLE OF CONTENTS

BUDGET REQUEST OF THE OVERSEAS PRIVATE INVESTMENT CORPORATION 

FISCAL YEAR 2011

INTRODUCTION ......................................................................................................................................... I

FY 2011 REQUEST ...................................................................................................................................... 1

ADMINISTRATIVE EXPENSES ...................................................................................................................... 1

Technology ............................................................................................................................................ 1

Human Resources ................................................................................................................................. 2

CREDIT FUNDING REQUEST........................................................................................................................ 3

STRATEGIES, GOALS AND OUTCOMES ........................................................................................................ 3

Developmental Quality of Projects – Aligning Budget to Performance ............................................... 3

Serving the Customer Efficiently ........................................................................................................... 4

Transparency ........................................................................................................................................ 4

Strengthening Management Practices .................................................................................................. 5

Regional Foreign Policy Priorities: Broader Middle East and North Africa, Sub-Saharan Africa, and 

Asia ....................................................................................................................................................... 5

SECTORAL PRIORITIES –RENEWABLE ENERGY AND CLEAN TECHNOLOGY, ACCESS TO CREDIT BY SMALL 

AND MEDIUM ENTERPRISES, AND MICROFINANCE ..................................................................................... 7

OPIC Support for Renewable Energy and Clean Technology .............................................................. 8

Channeling U.S. Private Sector Capital to Financial Institutions that Lend to Micro and Small and 

Medium Enterprises (SMEs) in Developing Countries ......................................................................... 8

OPIC Support for Microfinance ..........................................................................................................10

OPIC Support for Housing ..................................................................................................................12

OPIC Focus on U.S. Small Business Investors ....................................................................................12

Leveraging U.S. Government Resources .............................................................................................14

Critical Importance of OPIC Insurance ..............................................................................................14

OPIC Insurance is Customer Focused .................................................................................................15

Framework Agreements .......................................................................................................................15

Enterprise Development Network ........................................................................................................15

OPIC-Supported Investment Funds .....................................................................................................17

Upcoming Priorities Regarding the Asset Allocation Plan ..................................................................19

APPENDIX ..................................................................................................................................................20

APPENDIX A: APPROPRIATIONS LANGUAGE ..............................................................................................20

Non-Credit Account .............................................................................................................................20

Program Account .................................................................................................................................20

OPIC Transfer Authority .....................................................................................................................20

Export Financing Transfer Authorities ................................................................................................21

APPENDIX B: BUDGET AND ANALYSIS TABLES .........................................................................................22

APPENDIX C: GPRA ANNUAL PERFORMANCE PLAN/REPORT AND PROGRAM ASSESSMENT RATING TOOL 

(PART) METRICS ......................................................................................................................................24

APPENDIX D: DEVELOPMENT MATRIX ......................................................................................................25

APPENDIX E: PROGRAM ASSESSMENT RATING TOOL................................................................................27
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i

INTRODUCTION 

OPIC supports the foreign policy of the U.S. Government by facilitating U.S. private 

investment in developing and transitioning economies. Private investment is the most 

effective and efficient engine of long term economic growth, and as a result is one of the 

most powerful and effective smart power tools available to the United States. OPIC is 

one solution to the fundamental problem of investing under uncertainty; by sharing risks 

and charging fees, OPIC is able to strike a balance between the risk to its financial 

reserves and the developmental benefits of projects it supports. 

For nearly forty years, OPIC has demonstrated a solid commitment, and an ability 

to support U.S. private investment in a prudent, sustainable and effective way. This 

support for private investment-driven economic development has been provided at no net 

cost to the taxpayer, since OPIC charges market-based fees for its products and operates 

on a self-sustaining basis. OPIC has been able to achieve this through prudent 

underwriting and judicious use of the leverage that OPIC can exert as an arm of the U.S. 

government. OPIC‘s favorable track record is reflected in the $4.7 billion it has 

accumulated in its Noncredit Account over the years. 

OPIC is a key tool in engaging the private sector in the recovery phase of the 

current economic cycle, especially given the dislocations of the current crisis. OPIC 

is taking a more proactive role in identifying highly developmental investment 

opportunities and investors willing to pursue such opportunities. OPIC also has 

strengthened its analytical methods for assessing the developmental effects of the projects 

it supports. 

OPIC seeks to ensure that such projects have a significant developmental benefit in 

host countries and that OPIC insurance and financing are additional to – and do not 

displace – market-driven financing and insurance from the private sector. OPIC 

concentrates its support on highly developmental projects in challenging economic 

environments and, in many cases, politically insecure environments. Private investors 

may not pursue these types of projects without OPIC support, because of the high risks 

involved. OPIC support can help to make such projects viable by reducing political risk 

through insurance or by addressing the commercial risk through guarantees or loans. 

As a member of the President’s Export Promotion Cabinet, OPIC is working to 

identify new strategies to mobilize exports in support of the National Export 

Initiative’s (NEI) goal to double exports over the next five years. Since 1971, OPIC 

projects have generated a cumulative $74 billion in US exports and supported more than 

274,000 U.S. jobs. 

OPIC’s programs are one of the most effective and efficient means the United States 

has to support economic growth in the countries in which it operates. OPIC 

efficiently focuses resources in countries and sectors where it supports projects, and does 

so in a way that complements the Administration‘s goals and priorities. While OPIC 

supports highly developmental investment projects in any OPIC-eligible country, OPIC 

actively seeks out projects in support of U.S. foreign policy priorities, and in sectors 

where OPIC support can make a real difference in catalyzing private sector investment.
ii

OPIC’s regional priorities are driven by the dynamics of foreign policy and 

opportunities for maximum development impact. 

OPIC is working to respond to the reconstruction needs in Haiti with potential 

finance and insurance projects ranging from emergency power generation to cellular 

phone service. Already, OPIC has committed to a $10 million loan that will enable a 

U.S.-headquartered business to manufacture Fiber Composite Panels that will be used 

to build thousands of energy-efficient homes in Haiti over the next five years. 

OPIC‘s focus on the Broader Middle East and North Africa is driven by a belief that 

an improvement in economic conditions and opportunities is a predicate for greater 

peace, stability, and democratic reform in the region. 

OPIC‘s focus on Sub-Saharan Africa is driven by Africa‘s need to further integrate 

with the global economy to overcome its comparative lack of economic progress and 

underdeveloped economic infrastructure. 

OPIC‘s increasing focus on Asia reflects the fact that U.S. partners and allies 

throughout Asia and the Pacific are indispensable to our nation‘s security and 

prosperity. They are also a partner in the solutions to the global challenges that the 

world faces - climate change, the global financial crisis, pandemics and economic 

disparities. These challenges require that we bolster historic partnerships and 

alliances while developing deeper bonds with all nations. 

In Latin America, OPIC is continuing to mobilize U.S. private investment with new 

OPIC-supported investment funds, and through lending facilities that increase lending to 

creditworthy small and medium businesses and micro-enterprises. 

With respect to sector priorities, OPIC continues its active support for sectors 

where it can make a real difference: (i) clean and renewable energy, (ii) access to 

credit for small and medium enterprises; (iii) microfinance and (iv) access to 

technology. In addition, OPIC continues to support the housing sector by carefully 

analyzing its pipeline and monitoring its portfolio of housing construction and financing 

projects.

OPIC considers clean and renewable energy to be a fundamental component of its 

developmental activities. The sharply rising demand for cleaner and more sustainable 

sources of energy is addressed by OPIC‘s capability and mission to mobilize private 

investment to promote economic development. OPIC has been exploring the most 

effective ways to establish the U.S. private sector‘s role in this sector in the developing 

world, where energy consumption has been quite low historically but where demand is 

increasing sharply, as emerging markets need more and more energy for cars, plants, and 

transportation. Climate change is no longer just an environmental or an energy issue; it 

also has implications for health, economic stability, and food security. Consequently, 

more than ever, OPIC‘s role is to create partnerships that promote economic growth and 

environmental protection through cleaner energy sources, greater energy efficiency, 

technology transfers that can benefit both countries, and other strategies that encourage 

sustainable development. 
iii

OPIC’s focus on credit to small and medium enterprises and on microfinance is 

driven by the lack of such credit in most developing countries, and by the important 

role that small business formation has in generating growth in any economy. Banks 

in developing countries generally do not lend to small businesses or microenterprises; and 

when they do, it is often only at very short terms and exorbitant interest rates. In part, this 

is due to the fact that banks in these countries have the false impression that small 

businesses are too risky and unprofitable. Moreover, banking regulations often 

discourage banks from making such loans through onerous reserve requirements. Added 

to that is the fact that small businesses do not have the financial know-how to present 

effective, reliable, and well documented loan documents, and the banks do not have loan 

officers trained to assess loan applications based on cash projections rather than 

collateral. Equity financing, another potential source of funding for small business, is 

equally unavailable, since (a) there are few equity funds in these countries, and (b) 

existing funds generally find it safer to target larger and more established businesses. 

OPIC addresses these constraints directly by mitigating risks and providing liquidity to 

support this sector. 

OPIC is focused on supporting investment, including private equity and venture 

capital funds to invest in emerging market companies that take advantage of the 

transfer, adaptation, and commercialization of existing and new technologies. This 

focus is driven by the Administration’s leadership in addressing the need to spur 

innovation and foster entrepreneurship in OPIC-eligible countries throughout Asia, 

the Middle East, and Africa. The sectors of interest for prospective investment funds 

and other funding vehicles include, but are not limited to, technology, healthcare, 

infrastructure, education, telecom, media, business services and financial technology, and 

renewable energy/clean-technology.

As indicated above, OPIC in recent years has reinforced its focus on its core mission 

of economic development by developing and applying a comprehensive tool to 

measure the development impact of projects. Using these tools, OPIC seeks to hold 

both itself and the projects it supports accountable for the developmental impact of 

OPIC-supported projects. During the approval process, OPIC assesses the anticipated 

development impact of projects and then monitors the actual impact, after the project has 

been in operation for a period of time. 

OPIC has experienced challenges in recent months as a result of the credit crisis. As 

a result of the global economic downturn, private sponsors of OPIC-supported investment 

projects have found it more difficult to obtain private equity and debt financing for 

projects in the pipeline. Businesses financed and/or insured by OPIC (directly or through 

framework agreements, investment funds, or reinsurance) have been adversely affected 

by the broad decline in demand. Accordingly, the risks associated with OPIC supported 

projects have increased, and OPIC has taken appropriate steps to monitor existing 

projects and to scrutinize current and potential projects in this economic climate. 

At the same time, the challenges posed by the financial crisis on investment flows 

have significantly increased the need and demand for OPIC support. As the 

principal U.S. bilateral development finance agency, OPIC is uniquely equipped to help 
iv

address these challenges. Thus, despite the decrease in project activity and because of the 

negative impact of the financial crisis on private investment, the need for appropriated 

resources out of OPIC‘s balances will remain high over the period covered by this 

budget. 

OPIC’s need for additional administrative resources is focused – as it was last year 

– on initiatives necessary to address technology, increased staffing, and internal 

controls. OPIC is requesting a reasonable increase of 3.1% to its administrative 

expenses budget. This increase is consistent with OPIC‘s need to continue its investments 

in systems, people, and integrated processes. These initiatives will be described in the 

following section. 
1

FY 2011 REQUEST 

OPIC requests the following appropriations to be self-funded from its offsetting collections: 

$53.95 million to support program administration, an increase of $1.6 million from 

FY 2010. 

$29.0 million in credit subsidy funding, no change from FY 2010. 

OPIC proposes an increase to its current authorized 225 FTE level by 5 FTE to 230 FTE. This 

would enable the agency to reduce its current utilization, and reliance on, contractors, and to 

build a more durable skill base. 

Administrative Expenses

This level will enable OPIC to continue its efforts to improve its administrative and asset 

management systems and to sustain the initiatives taken in recent years to upgrade its 

information technology. 

OPIC‘s administrative resources request comes in the context of a growing workload which 

results both from its shift to more highly developmental projects and from its increased support 

for projects sponsored by small and medium U.S. enterprises. Both of these shifts, which were 

mandated by both the President and the Congress, require more in-depth analysis and more 

hands-on involvement by project officers on projects that OPIC looks to support. 

On the governmental side, new imperatives to monitor, evaluate, and report transactions are part 

of our commitment to OPIC‘s stakeholders, to Congress, and the Administration. These 

requirements, along with cross-cutting transparency reporting, internal controls, and government 

integration efforts, require additional administrative effort. 

Technology 

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

requires good integration of information resources, processes, and people. OPIC‘s Chief 

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

these components to support OPIC‘s strategic business objectives.1 OPIC‘s IT strategy is 

aligned with the OPIC Strategic Plan and is designed to meet the agency goals by assuring 

effective access to integrated information by management, and by serving customers better to 

improve the overall experience of working with OPIC. 

OPIC‘s core business processes are built on antiquated software and data which limits 

operational reliability and flexibility. 

 

1

See http://www.opic.gov/sites/default/files/docs/ocio_strategic_plan_2007_2011.pdf.pdf 
2

OPIC‘s strategy for FY 2011 is to continue the successful efforts to upgrade the IT architecture 

under Business Systems Replacement Program (BSRP). As part of the BSRP program, OCIO 

completed work on multiple enterprise level systems that will modernize the loan origination 

process, stabilize the insurance system, and improve the accounting, budget, and procurement 

processing systems. These projects will upgrade and integrate a patchwork of stand-alone 

systems that do not adequately support workflow, track documents, or analyze outstanding 

commitments. The planned improvements within the BSRP program will make it possible to 

achieve a much closer integration of OPIC‘s financial, risk, and reporting systems. 

While pursuing improvements, OPIC is also strengthening its institutional capability to develop, 

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

OPIC will be used efficiently. 

Human Resources 

OPIC is working continuously to maintain an effective organizational structure and to ensure that 

its human resources are effectively utilized in support of its mission and the achievement of its 

operational goals. Using OPM‘s Human Capital Assessment and Accountability Framework, 

OPIC is developing a Human Capital Accountability Plan that will guide and transform how it

assesses, plans, and responds to human capital challenges and needs. 

Accordingly, OPIC requests a modest increase in its FTE levels to reduce its dependence on 

contractors in certain critical areas, and to provide a degree of flexibility in planning OPIC‘s 

workforce. 

OPIC‘s human capital strategy establishes a priority for the human resource needs associated 

with: 

Protecting and responsibly managing the financial risks of the portfolio. 

Delivering more transparency to the public and to the interagency community. 

Expanding the capacity to originate projects in policy priority countries, regions, and

sectors. 

Translating organizational performance at the strategic level, through new departmental 

initiatives, and corporate strategic planning efforts, through to the staff level. 

In May 2009, OPIC was rated among the best places to work in the federal government, 

according to rankings issued by the Partnership for Public Service and American University‘s 

Institute for the Study of Public Policy Implementation. 
3

OPIC finished second among federal agencies with fewer than 2,000 employees in the Best 

Places to Work rankings, based on a survey conducted by the U.S. Office of Personnel 

Management that represents the views of 212,000 federal employees.2

As OPIC continues to grow its portfolio, both in size and scope, it is realizing a greater return on 

its investments in human capital. 

Credit Funding Request

OPIC requests a credit reform funding level of $29 million to meet both normal subsidy 

requirements, as well as to give OPIC flexibility to address projects in places such as the Broader 

Middle East and North Africa, Sub-Saharan Africa, and Asia where support is necessary to U.S. 

foreign policy objectives. OPIC requests three-year availability, as was provided in the FY 2010 

appropriation. OPIC‘s request for FY 2011 reflects the expected subsidy costs of: 

supporting foreign policy priorities in a challenging global economic and financial 

environment; and 

supporting small business lending, which generally draws relatively high levels of 

subsidy, even though individual transactions are small. 

OPIC is also requesting continuation of the existing $20 million in credit subsidy transfer 

authority, which was first enacted in FY 2006. This authority provides the State Department and 

OPIC with increased flexibility to respond to U.S. foreign policy priorities, as opportunities are 

identified, or as priorities evolve. 

OPIC forecasts that the requested budget will support estimated lending levels of approximately 

$2.3 billion dollars in direct and guaranteed loans. 

Strategies, Goals and Outcomes

Developmental Quality of Projects – Aligning Budget to Performance 

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

supports. OPIC‘s Development Matrix is a comprehensive analytical tool for measuring the 

developmental impact of individual projects that OPIC supports. 

The Development Matrix provides objective benchmarks for quantifying the developmental 

impact of projects with respect to job creation, technology transfer, human resource 

development, social benefits, private sector development, infrastructure development, and 

national benefits. OPIC calculates an anticipated (ex ante) development score to assist top 

management in its consideration of a project, and it calculates an actual (ex post) development 

score after a project has been implemented. 

 

2

See http://data.bestplacestowork.org/bptw/detail/GB00 
4

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

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

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

all projects. 

2008 2009 2010 2011

Target Actual Target Actual Target Target

Number of Projects NA 28 NA 117 NA NA

Average Development Score 95 91 100 86 100 100

Serving the Customer Efficiently 

OPIC management has made efficient customer service one of its key priorities. In 

FY 2009, for example, OPIC supported nearly $6 billion in total project investment with an 

administrative expenses budget of $50.6 million. On this basis, OPIC‘s ―overhead‖ is 0.84%,

which compares very favorably with other economic assistance programs. By meeting customer 

needs, OPIC can better achieve its core mission of supporting private investment efficiently, 

while obtaining a highly developmental payoff. 

Transparency 

To increase transparency, OPIC has decided to publicly identify potential environmental 

issues at a much earlier stage in the project development process than in the past. OPIC 

now requires enhanced consultation with locally affected communities on what the agency calls 

 ̳Category A‘ projects – i.e., those with the potential for significant environmental impact. In 

addition, OPIC has developed an Environmental and Social Policy Statement to provide 

Applicants (e.g., investors, lenders, or project sponsors) notice of the general environmental and 

social requirements that OPIC may apply in evaluating prospective projects seeking OPIC 

support and monitoring on-going OPIC-supported projects. These environmental and social 

requirements apply, as appropriate, to all projects supported through OPIC insurance, direct 

loans, or investment guaranties, including support through such Financial Intermediaries as 

investment funds or financial institutions that make equity or loan investments.3

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

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

versions of certain environmental documents on Category A projects.4

 

3

See <http://www.opic.gov/news/press-releases/2009/pr040809> 

4

See <https://www2.opic.gov/environasp/environtable.asp> 
5

Strengthening Management Practices 

OPIC also has taken steps to strengthen its management practices. For example, OPIC has 

established a Senior Management Council (SMC) of OPIC‘s leadership, and a Senior 

Assessment Team (SAT) at the working level. Additionally, OPIC has established an Audit 

Committee within the Board of Directors. The purpose of that Committee is to: 

Provide assistance to the Board of Directors in fulfilling its accounting and financial 

oversight responsibilities. 

Demonstrate that OPIC has in place adequate and effective administrative and 

financial controls. 

Review the financial statements. 

Provide oversight regarding the Corporation‘s internal audit functions and its 

independent public accountants. 

The Audit Committee is currently conducting a risk assessment and three-year audit plan. It 

issued its first internal control audit report in FY 2008 with the final report in FY 2010. 

Regional Foreign Policy Priorities: Broader Middle East and North Africa, Sub-Saharan 

Africa, and Asia 

OPIC’s economic development mission is guided by U.S. foreign policy objectives. Within 

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

complement most effectively the U.S. foreign policy objectives - the Broader Middle East and 

North Africa, Sub-Saharan Africa, and Asia. In particular, OPIC continues to focus on 

stimulating economic activity in countries that need to overcome the legacy of conflict. 

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

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

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

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

supporting private investment and activities by U.S. NGOs that can rapidly create jobs, raise 

incomes, and increase the local population‘s stake and confidence in peace and stability. OPIC 

proactively seeks out and works with investors and partner organizations to launch projects that 

together will help the country to jumpstart economic growth. 

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

hope through increased employment and can demonstrate tangible economic benefits resulting 

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

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

entrepreneurship through investing in small and medium sized enterprises. 

In Afghanistan and Pakistan, OPIC continues to work with private investors, other U.S. 

agencies, host governments, and the international community to address the instability caused 

where a lack of economic opportunity has weakened the host governments, made the missions of 
6

U.S., multinational and local troops more difficult and dangerous, and created conditions that can

spread terrorism. In Afghanistan, OPIC has commitments of approximately $167 million in 

investments in 16 projects and has a pipeline of more than $200 million in investments in 15 

projects. This includes, for example, a $15 million capital reserve approved in FY 2009 for the 

first private commercial risk insurance company in Afghanistan, and a $15.8 million expansion 

loan approved in FY 2010 for a high quality marble quarrying operation. In Pakistan, OPIC has 

commitments of approximately $111 million in investments in 13 projects and a pipeline of more 

than $400 million in at least 7 projects, mostly in power generation, access to credit for SMEs, 

and microfinance. 

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

Citibank worked together to speed up the country‘s recovery by channeling private capital to 

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

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

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

continued need for financing by entrepreneurs. 

In the West Bank, OPIC is seeing the fruits of the efforts begun in 2005 when it first teamed up 

with the Aspen Institute and the Palestinian Investment Fund to create a $228 million small 

business lending facility. The facility has engaged financial institutions, which lend to 

downstream Palestinian borrowers on affordable terms based on cash flow-based lending criteria. 

To date, the facility has engaged a total of eight local banks to participate and has approved 205 

guarantees to loans valued at $48 million. Each one of the individual loans represents an 

entrepreneur building a business that makes a difference in the local community. OPIC also is 

working with the Palestinian Investment Fund, local banks, and the IFC on a $500 million ($250 

million OPIC Share) mortgage facility that will develop affordable housing opportunities for 

Palestinians. 

In Iraq, OPIC supported the creation of the Iraq Middle Market Development Foundation 

(IMMDF) with capital provided by the Coalition Provisional Authority (CPA) in 2005. 

Cooperative Housing Foundation (CHF International), the Sponsor, was selected through a 

competitive bidding process to operate the company to make loans to Middle Market Enterprises 

(MMEs) (IMMDF 1) and subsequently to smaller enterprises and the agricultural sector 

(IMMDF 2) and finally to SMEs (IMMDF 3). IMMDF was originally conceived to work with 

commercial banks in Iraq, but the undercapitalized banking sector was not an effective partner. 

For all three facilities, OPIC has provided almost $82 million in direct loans (IMMDF 3 has just 

been approved and has not yet disbursed). OPIC is in the final stages of obtaining approval to 

extend a $90mm microfinance facility for an NGO operating in Iraq. In FY 2009, in cooperation 

and coordination with Iraq‘s Ministry of Finance, the State Department and the Department of 

Defense, OPIC‘s Board approved a $50 million loan to finance a $100 million business-class 

hotel property in the international zone of Baghdad, to facilitate greater international investor 

interaction with the government on a broad range of investment opportunities. 

In Jordan, OPIC has made substantial and sizable commitments across a range of sectors. OPIC 

supports low income mortgages enabling a bank in Jordan to expand homeownership for low-
7

income families in the country. OPIC also financed projects in water supply and power 

generation. OPIC‘s total exposure stands at $629 million, as of the end of calendar 2009. 

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

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

discussed below, OPIC‘s Board has approved new investment funds that now target investing in 

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

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

In Asia, OPIC is actively supporting innovative investments, e.g., in the clean and renewable 

energy sectors through several new Global Renewable Funds that can invest in the region, and by 

providing financing and political insurance to support new hydro and wind projects in Sri Lanka 

and India. As discussed in more detail below, the OPIC-supported South Asia Clean Energy 

Fund will invest in companies and projects that support the need for cleaner forms of energy in 

the region—including those utilizing solar, wind, hydropower, biofuel and natural gas. The fund 

will also invest in technologies that promote: energy efficiency; improved batteries and storage, 

clean transportation, clean water systems, and environmental and energy efficient building. And 

it will focus on companies that service the renewable energy value chain, and on building South 

Asian regional and global growth companies. 

And, in the Republic of Georgia, which still struggles from the economic impacts of its conflict 

with Russia, OPIC committed to provide $176 million in financing to support investment 

projects in Georgia, including a $6.3 million direct loan for the construction of an apartment 

building for moderate income residents, a $40 million SME lending facility with a U.S.-owned 

local Georgian bank, and up to $44 million to eligible local financial institutions under a 

framework agreement. OPIC also expects to commit $30 million for microfinance in Georgia 

this year. 

Sectoral Priorities –Renewable Energy and Clean Technology, Access to Credit by Small 

and Medium Enterprises, and Microfinance

OPIC focuses on renewable energy and clean technology, and on increasing access to credit 

for micro and small and medium enterprises as priority sectors. While OPIC is prepared to 

support developmental projects in almost any sector, provided they do not create adverse 

economic effects in the U.S. and meet other statutory requirements with respect to the 

environment and recognized labor rights standards, OPIC‘s support for U.S. private investment 

in these sectors can have a proportionally large economic development impact by: 

Applying U.S. renewable energy, clean technology, and efficiency expertise to provide 

developing countries with cleaner options to power their development; and 

Enabling U.S. private capital to support well-run micro and SME financial institutions to 

provide access to credit for entrepreneurship at the grass roots level and to start and grow 

small businesses. 
8

OPIC Support for Renewable Energy and Clean Technology 

OPIC fully supports environmental improvement and the use of cleaner forms of energy in 

its developmental activities. OPIC‘s portfolio includes energy projects generating a cumulative 

total of more than 2,200 MW of clean power, including solar, small hydro and wind. Many of 

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

development and deployment of clean technologies. 

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

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

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

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

stakeholders in the sector and identified projects most suited to OPIC financing. The team has 

made financing commitments to nine projects in FY 2009 totaling nearly $188 million. This 

doubles OPIC's portfolio of outstanding renewable and clean tech projects as compared to the 

previous year end. Project commitments include financing for one of the first, if not the first, 

grid-connected solar generation facility in India, green housing community in Poland, a biomass 

generation facility in Liberia and a 

In this sector, OPIC has taken a more active, ―hands-on approach‖ to project development 

alongside U.S. investors. The renewable energy group tracks projects in its pipeline for assisting 

sponsors over important hurdles, such as identifying viable equity sources. Detailed tracking 

also allows the team to maintain a view of OPIC‘s potential financing commitments, and plan 

OPIC workforce allocation needs. At this time, OPIC is tracking approximately $2 billion in 

projects that could be in need of OPIC finance assistance. This represents approximately 50 

projects. A significant number of these projects is being developed in Africa and Central 

America. OPIC expects to increase the number of projects in its finance portfolio in each of the 

next three years. 

At the Washington International Renewable Energy Conference (WIREC) held in Washington, 

DC, in March 2008, OPIC announced the Global Renewable Energy Call for Proposals. The 

purpose of the Call was to finance private equity funds that facilitated the investment of risk 

capital to companies or projects within the renewable energy sector and other related sectors in 

the field of energy and environmental sustainability. Through the Call, OPIC addressed an 

important policy objective of the U.S. Government: to promote private sector investment in the 

global renewable energy industry. The funds that OPIC has elected to support under this Call are 

described below under ―Investment Funds – Global Renewable Energy Funds.‖

Channeling U.S. Private Sector Capital to Financial Institutions that Lend to Micro and Small 

and Medium Enterprises (SMEs) in Developing Countries 

The economic development community has come to recognize that making medium- and longterm credit available to creditworthy SMEs is one of the most effective tools available to ignite 

economic growth and productive job creation. In many, if not most, developing countries bank 

loans for more than 12 months are simply not available to small businesses, and the credit that is 

available requires extensive collateral and often on unaffordable terms. SMEs are vital to 

*

* 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.
9

energizing private sector driven economic growth, but all too often, SMEs are unable to grow in 

a sustainable manner because they lack access to capital needed for business operations and 

planned expansions. 

On one hand, often the financial institutions have neither staff trained to assess the viability of a 

small business, nor the tools to establish and assess credit underwriting standards. In part, this is 

because local banks continue to question the profitability of small enterprise finance. Moreover, 

SMEs in developing countries often operate in the informal sector, and, as a result, lack the 

business relationships and management knowledge necessary to package and present a business 

plan that meets a bank‘s credit underwriting criteria. Consequently, SMEs generally lack 

sufficient access to capital, particularly long-term capital. 

In response, OPIC has taken a lead role by developing different business models to support SME 

lending in developing countries on reasonable terms and attractive maturities. Moreover, OPIC 

has also partnered with the Treasury Department, USAID and multilateral development banks in 

effectively providing technical assistance to help small enterprises acquire the skills needed to 

put together an effective business plan and loan application. 

The business models OPIC has pioneered include: 

OPIC loans to U.S. owned local financial institutions that, in turn, provide financing to 

the SME sector; 

OPIC guarantees of loans made by U.S. banks to local financial institution in the host 

countries for the purpose of funding SME loans; 

OPIC guarantees of bonds issued by U.S.-owned local financial institutions in the host 

countries to fund SME loans; and 

OPIC commitments to share the risk of specified SME loan portfolios of U.S.-owned 

local financial institution in the host countries. 

Tailored Insurance products at discounted rates to support small business entrepreneurs 

and their projects. 

OPIC has used its relationships with American banking institutions to specifically expand 

lending to such important sectors as SME, microfinance and housing. Under a framework 

agreement, OPIC commits itself to support loans up to a certain value and pursuant to conditions 

spelled out in the agreement. OPIC has established a number of global and regional facilities 

using this format. 

For example, in Afghanistan, OPIC is *

* 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.
10

OPIC Support for Microfinance 

Microfinance institutions (MFIs) provide a broad range of financial services, including 

access to credit by the un-banked and under-banked populations in developing countries. 

By offering high quality, financial services to grassroots entrepreneurs that do not have normal 

access to credit, MFIs enable individuals with little capital to start and expand a business. Many 

MFIs also assist their clients to finance home improvements, health care and education for 

family members, thereby providing a holistic approach to poverty alleviation. Women represent 

the majority of MFI clients, which is particularly important since women in emerging markets 

must overcome many barriers to participate in the formal economy. 

The turmoil in the financial markets has prevented many MFIs from raising sufficient capital to 

finance the growth of their lending activity. Not only does this pose a problem for MFIs that 

seek to benefit from the efficiencies inherent in growing their business, it also results in a 

reduction in capital that can be provided to the MFIs‘ underlying micro business customers. 

In this difficult environment, OPIC has increased its efforts to provide financing to the 

microfinance sector by participating in a number of microfinance transactions that are 

essential for the MFIs and their borrowers to maintain and continue to grow their business 

activity. To that end, OPIC has established a number of global and regional facilities.

Examples of some innovative transactions include: 

MFX Solutions – OPIC provided a $20 million loan guaranty to MFX Solutions, a Washington, 

D.C.-based company which manages currency risk in the microfinance industry. MFX will offer

currency hedging products such as currency swaps to MIVs, which in turn will provide loans in

local currency to MFIs in various countries around the world, particularly in Africa. By enabling

MFIs to borrow in their own currency, the project will enable MFI‘s to match liabilities to assets,

significantly lowering risk and thereby catalyze private capital flows into developing markets.

The project is expected to mobilize nearly $140 million in lending to microentrepreneurs in its

first year, and more than 400,000 microfinance loans over five years. The project is expected to

support lending in more than 50 countries worldwide, predominately targeting Africa and Latin

America, with about 20 percent of its funds allocated to Asia, Eastern Europe and the Middle

East.

Sante GMT – A U.S. small business will use an OPIC $10 million loan to expand 

manufacturing operations at the largest producer of dairy and juice products in Georgia, 

establishing new milk collection centers, upgrading equipment for production lines, and 

improving its distribution network. The same business used a 2006 OPIC loan for a similar 

technology upgrade which benefited both the company and the dairy industry in Georgia. The 

company will use the loan to establish additional new milk collection centers, upgrade the 

distribution vehicle fleet, add equipment for production of premium butter, processed cheese, 

*

* 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.
11

and bio-products, and a new packing line for juice packaging. The milk collection centers in 

particular will enable the company to produce a fuller range of dairy products utilizing all of the 

byproducts such as skimmed milk, fat and whey left from natural milk processing. Sante GMT is 

owned in part by five U.S. investors. 

BRAC Africa Loan Fund (the  ̳Fund‘) involves BRAC, a leading international development 

organization founded in Bangladesh which successfully raised $62.6 million of debt capital to 

provide microfinance loans to poor borrowers in Tanzania, Uganda and Southern Sudan. The 

Fund plans a second close to reach total capital of $74 million. The Fund provides long-term, 

local-currency funding that will enable BRAC to scale up its microfinance operations to reach 

over 700,000 borrowers through over 200 branches across the three countries. This transaction 

was the largest single financing to date of a southern hemisphere development organization 

expanding into Africa. OPIC was an anchor investor in the transaction providing $28 million to 

the Fund. 

Blue Financial is a South African-based financial institution that provides micro and small and 

medium enterprise (SME) financing in South Africa and eleven other countries in Africa. The 

company operates with a double bottom line objective aimed at maximizing profit while 

contributing to the alleviation of poverty by making capital accessible to low-income households 

and small businesses. OPIC is providing a $70 million loan to support the expansion of Blue‘s 

lending to SMEs in South Africa. Although South Africa has a well-developed financial sector, 

most small companies and individuals cannot access traditional debt markets. Approximately 

40% of Blue‘s borrowers are expected to be located in rural areas and 55% are expected to be 

female. Blue also offers training programs to assist entrepreneurs with the successful start-up of 

their business. 

Citibank Microfinance Facility has demonstrated the world wide demand for financing in this 

market. Through July 2009, the facility has supported over 25 institutions with over $50 million 

of loans to microfinance borrowers on every continent, including such countries as India, Jordan, 

Romania, El Salvador, Philippines, Honduras, Mexico, Kenya, Kazakhstan and Uganda. 

Moreover, at the Summit of the Americas in FY 2009, President Obama announced OPIC‘s 

support for the $100 million initial stage of a multilateral Microfinance fund for the Western 

Hemisphere (MiGroF). With other private and public sources of capital, MiGroF will make 

medium and long term senior loans and subordinated loans to microfinance institutions (MFIs), 

microfinance investment vehicles (MIVs), and other financial intermediaries that reach out to 

micro and small enterprises in Latin American and the Caribbean (LAC). 

With the state of the global credit markets today, microfinance institutions are having a more 

difficult time in raising capital, and OPIC is poised to continue its support of these dynamic 

grassroots organizations. OPIC is working on new and innovative projects to address 

microfinance needs in global emerging markets and is considering the following business 

models to expand its support of microfinance institutions: 

Addressing liquidity needs of microfinance sector by filling the financing gap resulting 

from the reduction in private sector investment. 
12

Participating in transactions that will encourage greater participation by capital market 

investors through a strong demonstration effect - showing investors that it is a safe and 

potentially profitable investment opportunity. 

Where appropriate, taking subordinated debt in transactions that will encourage greater 

capital flows from the private sector. 

Partnering with financial institutions that can lend in local currency or provide local 

currency hedging products.

Attracting private capital through securitizations – which give investors a more liquid and 

standardized product for their portfolios.

Supporting funds and microfinance network organizations that finance smaller MFIs with 

more limited access to capital.

Providing political risk insurance to microfinance institutions and their investments 

abroad. 

Creating multi-project master insurance programs that provide comprehensive political 

risk coverage at rates that recognize the mitigating effects of spreading the risk. 

OPIC Support for Housing 

OPIC continues to view housing finance as a critical sector needing support from bilateral and 

multilateral development finance agencies. OPIC‘s focus on this sector in recent years has 

resulted in a successful and rapidly expanding portfolio. 

Given the continuing concern in the world‘s mortgage markets, OPIC's Board of Directors took 

the decision in late 2008 to cap committed housing-sector exposure to one third of OPIC‘s 

portfolio, until further review or by specific waivers. 

OPIC still sees strong interest in this sector throughout many regions of operations, with projects 

under consideration in countries such as India, Turkey, Liberia, Ghana, Romania, and Latin 

America. Also, the highly developmental, emerging areas of housing continue to seek support in 

areas such as microfinance and green housing and building.

Given the continued demand for housing finance products, OPIC is able to utilize conservative 

credit standards and has a continuous process of adjustment to factor in lessons learned that 

serves to strengthen its prudent underwriting methodology. 

OPIC Focus on U.S. Small Business Investors 

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

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

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

economy. Small business is a part of nearly every U.S. community: the U.S. Small Business 
13

Administration (SBA), for example, reports that small businesses employ about 50 percent of all 

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

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

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

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

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

One of OPIC’s ongoing goals is to increase small business participation in global markets 

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

For example, Insurance has increasingly focused on supporting U.S. small businesses that want 

protection against political risks as well as the support and advocacy of the U.S. government in 

the event that the rules change. Insurance provides a streamlined application and administrative 

process for eligible small business companies. 

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

projects the agency supports. A good OPIC project addresses an important developmental need 

in the host community, transfers technology and skills from a successful American company to a 

nascent industry in an emerging market, and supports the same industry here in the United 

States. It delivers lasting economic effects because it is funded not by grant but by investment 

with the expectation of long-term profitability and job creation. 

In 2007, OPIC supported 111 new projects that involved small- and mediumsized enterprises, which accounted for 80% of the 139 projects supported in that year. 

In 2008, OPIC supported 49 new projects that involved small- and mediumsized enterprises, which accounted for 62% of the 78 projects supported in that year.

In 2009, OPIC supported 89 new projects that involved small- and mediumsized enterprises, which accounted for 76% of the 117 projects.

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

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

successfully. In FY 2008, OPIC continued its successful series of Expanding Horizons 

workshops, holding events in Newark, New Jersey; Houston, Texas; and San Francisco, 

California. Designed for minority and women-owned businesses, these workshops informed 

participants about the support available from OPIC and other U.S. government agencies to 

help their companies to access business opportunities internationally. 

To date, OPIC has held seven Expanding Horizons workshops across the country, 

attracting 765 participants, in 22 states, and involving the support of 67 supporting 

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

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

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

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

for International Trade and Development. In 2008, OPIC was also pleased to welcome to its 

strategic "Partners Program" the National Association of Business Owners (NAWBO). 
14

OPIC continued the Expanding Horizons series with two more regional workshops in 2009. The 

Boston, September 24 workshop featured the keynote speaker Elizabeth J. Weber, co-founder 

and director of Edge Development Group, Inc. (EDG), a business consulting firm based in 

Ridgefield, Connecticut. EDG has worked extensively in Europe, Latin America, and the Middle 

East, assisting governments in the formulation and the implementation of international inward 

investment programs. Ms. Weber is a past president of the Connecticut chapter of the National 

Association of Women Business Owners (NAWBO), and a founder and past chair of NAWBO‘s 

International Forum. 

Leveraging U.S. Government Resources 

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

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

government. 

Policy reforms and social investments supported by grant-funded technical assistance provided 

by the Millennium Challenge Corporation (MCC), the U.S. Agency for International 

Development (USAID), the Department of the Treasury, the Department of State, or the Trade 

and Development Agency complement OPIC-supported private investments. For example, 

grant-funded technical assistance for the reform of laws underpinning property titles, title 

insurance, and consumer mortgages help reinforce OPIC-supported private investment in the 

housing sector. 

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

the Commerce Department‘s Foreign Commercial Service. Similarly, trade agreements 

negotiated by the U.S. Trade Representative remove obstacles to such investments and OPICsupported investments that build trade capacity reinforce MCC compacts and complement 

USAID grants. 

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

communication between OPIC‘s top managers and their counterparts in other agencies. 

Critical Importance of OPIC Insurance 

OPIC’s Political Risk Insurance is a critically important element to OPIC’s efforts to 

mobilize capital in developing countries. OPIC‘s financing capabilities help put investors in 

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

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

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

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

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

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

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

business income, breach of contract or guarantee, and political violence. 
15

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

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

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

commercial basis. As a government agency, OPIC can take risks that the private political risk 

insurance industry on its own would be otherwise unwilling to take. 

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

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

for Capital Markets investors investing in emerging market bond offerings. The private political 

risk market then adopted the product and began offering it themselves. OPIC continues to 

explore new product concepts, such as coverage for intellectual property. 

OPIC Insurance is Customer Focused 

In May 2009, OPIC organized a conference for its customers. The conference was attended by 

approximately 100 leaders of the U.S. private sector – including top investors, bankers, insurance 

and legal experts – as well as representatives of the federal government, business associations 

and nonprofit organizations. At the conference, OPIC held roundtable discussions regarding 

potential new OPIC insurance products tailored specifically for sectors such as renewable and 

alternative energy, finance, nonprofit organizations and schools, small and medium-sized 

enterprises, and insurance companies themselves. Other discussions focused on investment 

opportunities in emerging markets that could be realized with the support of OPIC political risk 

insurance. 

Framework Agreements 

While OPIC has worked with American banks through framework agreements to promote U.S. 

Government priorities in the past, the recent global financial crises may impact that relationship 

in 2009. OPIC‘s key partners have been Citibank, Wachovia, and National City Bank because of 

their international branch networks and extensive correspondent bank relationships in countries 

where OPIC can do business. In the past, these banks had been willing to make loans that meet 

OPIC priorities. OPIC has evaluated many of these loans and found that, indeed, a significant 

portion of framework capital is targeted to more highly developmental segments of the specific 

markets. OPIC hopes to be able to continue the relationships that have made the framework 

program so successful. 

Enterprise Development Network 

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

between OPIC, sister agencies, and the private sector. EDN significantly extends OPIC’s 

ability to provide financing and political risk insurance to more SMEs doing business in 

developing countries. Through the support of participating financial institutions, business 

consultants, associations, law firms, state/regional promotion, and sister agencies, EDN increases 

the access of small businesses to OPIC products and services. The network results in more 

efficient, cost-effective delivery of services to American and local businesses. 
16

EDN includes the following participants: 

EDN Originators: comprised of business consultants and not-for-profit organizations 

worldwide, will be trained by OPIC to advise SMEs in drafting business plans, enhancing 

market strategies and preparing applications that meet OPIC‘s standards and policy 

conditions for both OPIC Finance and Political Risk Insurance programs. 

EDN Network Investors: debt and equity providers that may or may not have OPIC‘s 

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

countries. 

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

assist OPIC in credit underwriting and due diligence on OPIC-funded loans. To date, 18 

advisors have been appointed. 

Currently 50 organizations collectively covering a broad range of industry sectors now serve as 

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

with several organizations having their own global presence. Approximately 80 people from 

these organizations have received classroom or web-based EDN training, designed to provide a 

meaningful exposure to the EDN program and the specific requirements of OPIC financing and 

insurance. 

EDN encourages collaboration among USG agencies, multilaterals, NGOs, for-profit 

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

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

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

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

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

viability of an underlying project. EDN/ATA became fully operational in April 2009 and OPIC 

receives no income for administering the initiative. 
17

OPIC-Supported Investment Funds 

Technology Growth

Responding to the President‘s Cairo speech, OPIC launched the Global Technology and 

Innovation Call. OPIC received 87 applications, the largest response to any call in OPIC‘s 

history. OPIC is currently finalizing due diligence with finalists likely to be announced in spring 

/ early summer 2010. The funds will facilitate the investment of risk capital in new businesses 

and in the expansion of existing companies, which will take advantage of the transfer, 

adaptation, and commercialization of new and existing technologies in Asia, the Middle East, 

and Africa. The sectors of interest for prospective funds may include but are not limited to 

technology, healthcare, infrastructure, education, telecom, media, business services and financial 

technology, and clean-tech. Consideration will be given to fund proposals that will (i) provide 

private sector businesses with a source of capital not presently available in scale, and/or (ii) that 

will provide investors with new or increased product for investment, and/or (iii) otherwise best 

meet the OPIC Selection Criteria. 

OPIC anticipates providing up to $150 million in debt financing to each selected fund. OPIC‘s 

support should represent no more than one third of the fund‘s total capital, with a minimum 

OPIC commitment of $25 million. OPIC‘s financing will be provided in the form of senior longterm indebtedness loaned or guaranteed by OPIC. The balance of each selected fund‘s capital is 

to be equity raised from private investors, international financial institutions, and other parties. 

Global Renewable Energy Funds 

In September, 2008, OPIC‘s board approved up to $505 million to finance six funds designed to 

invest in clean and renewable energy projects and companies in emerging market countries 

worldwide, and the funds are expected to mobilize a total of $1.6 billion in capital for the sector. 

The following renewable energy funds have been approved by OPIC‘s board: 

Middle East & Asia Capital Partners Clean Energy Fund II 

OPIC is providing up to $50 million in financing to the fund, which will invest in a wide 

spectrum of renewable energy projects throughout Asia, with an emphasis on South and 

Southeast Asia. It will invest in equity, convertible debt and mezzanine debt in projects – wind 

farms and geothermal production, for example – as well as in manufacturing and service 

companies that serve the renewable and biofuels sectors. OPIC selected as fund manager Middle 

East & Asia Capital Partners Pte., Ltd (MEACP), a private equity platform connecting the 

Middle East and Asia. The fund has a target capitalization of $150 million. The fund will be 

raised in parallel with the targeted $250 million MEACP Clean Energy Fund, which will invest 

in parallel with the fund in investments eligible for OPIC support. 

South Asia Clean Energy Fund 

OPIC is providing up to $100 million in financing to the fund, which will invest in companies 

and projects that support the need for cleaner forms of energy in the region—including those 

utilizing solar, wind, hydropower, biofuel and natural gas. The fund will also invest in 

technologies that promote: energy efficiency; improved batteries and storage, clean 
18

transportation, clean water systems, and environmental and energy efficient building. It will 

focus on companies that service the renewable energy value chain, and on building South Asian 

regional and global growth companies. Approximately 75 percent of the fund‘s investments are 

expected to be made in India. OPIC selected as fund manager GEF Management Corporation, 

which has previously managed two successful OPIC Funds, Global Environment Emerging 

Markets Fund, L.P. and Global Environment Emerging Markets Fund II, L.P. The fund has a 

target capitalization of $300 million. 

FE Global Clean Energy Services Fund IV 

OPIC is providing up to $55 million in financing to the fund, which will invest in renewable 

energy and energy-efficient emission reduction projects in Asia, Central and Eastern Europe, and 

Latin America. At least 50 percent of the fund‘s capital is planned to be invested in Asia, 

primarily in India, Malaysia, Philippines and Thailand. The Fund will also make clean energy 

investments in select countries in Latin America and Eastern Europe. OPIC selected as fund 

manager GEM Management IV Corp., an affiliate of FE Clean Energy Group, Inc., a leading 

private equity fund management firm focused on renewable energy and energy efficiency 

investments in emerging markets. These investments are expected to generate tradable carbon 

credits for Greenhouse Gas emission reductions. The fund has had an initial closing of 

approximately $150 million. 

US Renewables Group 

OPIC is providing up to $100 million of capital to be co-invested in renewable power generation, 

clean fuels and renewable energy value-chain investments in emerging markets worldwide. US 

Renewables Group is the fund manager, and OPIC capital will be managed in connection with 

the USRG Power and Biofuels Fund III. The fund will target investments in asset-focused, 

renewable energy projects, or platform companies that are projected to have strong cash flows 

within two years and have low technology risk. 

Good Energies – Wolfensohn Renewable Energy Fund 

OPIC will provide up to $100 million in financing to the Fund, which will invest in expanding 

businesses that manufacture, develop, supply, or support renewable energy products or services 

in emerging markets worldwide. The Fund intends to invest in renewable energy projects, energy 

efficiency and clean energy technology. The Fund will target both emerging-market companies 

that target their domestic markets and OECD-based renewable energy companies that are 

expanding into emerging markets. OPIC selected as fund manager a joint venture between Good 

Energies II L.P. and Wolfensohn Low Carbon Energy Fund, L.P. The fund has a target 

capitalization of $300 million. 

Virgin Green Emerging Markets Fund, LP 

OPIC is providing up to $100 million in financing to the Fund, which plans to invest in 

companies involved in the renewable energy and resource efficiency sectors in emerging market 

countries. The Fund is targeting $200 million to invest in growth and expansion capital in 

companies across the renewable energy and resource efficiency sectors. The Fund is a follow-on 

to the existing Virgin Green Fund I, L.P. (―Fund I‖), presently an approximate $250 million fund 

formed in June 2007 to invest primarily in the U.S. and Europe. The Fund will apply to the 

emerging markets a strategy similar to that employed in Fund I. 
19

Upcoming Priorities Regarding the Asset Allocation Plan 

The Investment Funds Department continues to assess the Emerging Market Private Equity 

landscape in light of the current economic environment and as in the past, and worked with a 

consultant and OPIC management on an asset allocation plan to identify appropriate 

opportunities for additional OPIC support. Due to the lack of depth and breadth of emerging 

market capital markets, OPIC‘s role to continue catalyzing private sector capital to invest in 

emerging markets in the current environment is paramount. Through its strategic review and 

meetings with other International Financial Institutions, the Investment Funds Department sees 

an opportunity to expand its Call program to meet the present market needs of emerging market 

fund managers. For example, as part of a forward looking asset allocation plan, OPIC may 

consider supporting new funds focused on investing in distressed assets and on the purchase of 

secondary pools of equity interests. Such initiatives could provide OPIC an opportunity to 

restore functionality to capital markets by providing patient and developmental capital in 

congruence with OPIC‘s mission. Other initiatives such as investment in agriculture, small and 

medium enterprises, and other high priority regions, as well as investment in infrastructure and 

on additional sustainable investment including renewable energy should also be considered. 
20

APPENDIX 

Appendix A: Appropriations Language

Non-Credit 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 $53,946,000: 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. 

Program Account 

For the cost of direct and guaranteed loans, $29,000,000, as authorized by section 234 of the 

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

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

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

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

commitments incurred or made during fiscal years 2011, 2012, and 2013: Provided further, That 

funds so obligated in fiscal year 2011 remain available for disbursement through 2019; funds 

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

fiscal year 2013 remain available for disbursement through 2021: Provided further, That 

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

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

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

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

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

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

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

Noncredit Account and merged with said account 

OPIC Transfer Authority 

(Including Transfer of Funds) 

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

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

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

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

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

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

funding levels in this Act shall not be transferred pursuant to this section: Provided further, That 
21

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 2011, for programs under title II of this Act may be transferred between 

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

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

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

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

Committees on Appropriations. 
22

Appendix B: Budget and Analysis Tables

Table B-1 FY 2010 Request 

Appropriated Resources FY 2009 FY 2010 FY 2011

(Dollars, Millions) Enacted Enacted Request

Gross Budget Authority

Administrative Expenses $ 50.6 $ 52.3 $ 53.9

Credit Subsidy 29.0 29.0 29.0

TOTAL, Gross Appropriations $ 79.6 $ 81.3 $ 82.9

Negative Subsidy, estimated (40) (50) (67.0)

Insurance Premiums (20) (20) (18.0)

Interest on Treasury Securities (210) (191) (192.3)

Noncredit Obligations 13 23 5.0

Net Offsetting Collections $ (257) $ (237.8) $ (272.3)

Net (Negative) Budget Authority $ (177.4) $ (156.5) $ (189.4)

Memo: Transfer Authority $ 20.0 $ 20.0 $ 20.0

 Table B-2 Summary of Credit Funding Request 

(Dollars, Millions) 2009 

Actual

2010 

Estimate

2011 

Request

Credit Subsidy Appropriation $ 29.0 $ 29.0 $ 29.0

Transfers - - -

Total New Resources $ 29.0 $ 29.0 $ 29.0

Projected Activity

Finance 2,700 2,000 1,800

Investment Funds 527 500 500

New Commitments $ 3,227 $ 2,500 $ 2,300

Subsidy obligations are projections based on current pipeline and indicative cash flows. Subsidy is 

obligated on an individual transaction basis; therefore, individual transactions may vary widely from 

rates published in the President’s Credit Supplement. 

Carry-forward amounts are related to: base appropriations resources still within the appropriated 

availability to obligate, and also no-year appropriations related to Assistance for New Independent 

States of the Former Soviet Union. 
23

Table B-3 Insurance Program Activities 

(Millions of dollars) 2008 

Actual

2009 

Actual

2010 

Projected

2011 

Projected

Aggregate Maximum Insured 

Amount

Start of year $ 6,269 $ 5,169 $ 4,516 $ 4,064

Issuance during the year 29 456 330 553

Reductions/Cancellations (1,129) (1,109) (752) (756)

Outstanding end of year $ 5,169 $ 4,516 $ 4,094 $ 3,861

Maximum Contingent Liability

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

End of year 2,922 2,689 2,305 2,190

Current exposure to Claims 

(CEC), end of year

2,245 1,945 1,693 1,608

Insurance Premium Revenue $ 20 $ 15 $ 15 $ 15

Notes and Definitions

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

this limitation on an aggregate basis. 

Aggregate Maximum Insured Amounts (MIA): Aggregate MIA is OPIC’s primary measurement of 

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

this amount. 

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

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

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

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

amount for each contract. 

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

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

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

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

brought would be the coverage with the highest amount of current insurance in force. 
24

Appendix C: GPRA Annual Performance Plan/Report and Program Assessment Rating 

Tool (PART) Metrics

GPRA PART PERFORMANCE GOALS

Outputs & Outcomes

FY 2009

Target Actual

FY 2010

Target

FY 2011

Target

Development 

Effects 

Development 

Matrix score 

Projects Finance Projects 98 86 100 100

Insurance Projects 98 91 100 100

Average 100 86 100 100

Efficiency SBC Cycle Time Insurance 70 56 70 70

Finance 70 51 70 70

Operate in a businesslike manner. 

Improvement Action: Business Systems Replacement 

Plan (BSRP) will improve support of integrated 

business processes and internal controls by replacing 

legacy systems / technology.

Internal 

Controls 

COOP

BSRP BSRP

Risk Mitigation 

and Corporate 

Citizenship 

Maintain or improve monitoring tempo of existing 

deals for issues which would affect OPIC’s 

development mission and risk of repayment.

Mitigate risk through sound portfolio management, 

project development practices, and incentives to 

encourage good corporate citizenship.

Ensure self-monitoring on all active projects.

Site monitor sensitive projects no later than 3rd year of 

operation.

% of on-going OPIC Projects monitored for 

compliance with OPIC’s U.S. effects, environmental, 

and worker rights standards.

100% 95% 100% 100%

Additionality Ensure additionality and private sector participation to 

ensure that OPIC leverages, but does not compete 

with, the private sector.

92 88 93 93

Policy priority 

sectors

(See FY Budget narratives) West-Bank Gaza Afghanistan-Pakistan

Haiti / Clean Energy

Global Engagement

National Export Initiative

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

businesses. Increase Outreach to SMEs; Especially 

those owned by women and minorities.

Implementation of EDN 

concept

Expand 

Outreach
25

Appendix D: Development Matrix

EXPANDED DEVELOPMENT IMPACT MATRIX (XDIP)

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 and provide the basic human necessities of 

shelter, food, water and health care. To support its developmental mission, OPIC evaluates 

and scores every proposed project in 26 key areas across three broad categories that 

objectively quantify its expected contribution to host-country development. 

o Category I covers job creation, training, local procurement, corporate social 

responsibility, and equal employment opportunity – five highly-weighted impacts 

that should be demonstrated by any project, regardless of sector or the level of 

economic development within the host country. 

o Category II covers 20 additional development indicators within such broad areas as 

human capacity building (degree of training), private sector development, resource 

leveraging, social effects, infrastructure improvements, macroeconomic and 

institutional effects, and technology/knowledge transfer. The degree to which 

projects demonstrate these additional developmental benefits depends significantly 

on the features of a given project. 

o Category III adjusts for the host country‘s per capita GNP, reflecting both OPIC‘s 

priority to steer investment into the poorest countries and the reality that nations 

most in need often lack the capacity to support more developmentally sophisticated 

investments. 

A project must score at least 50 on the matrix to be considered developmental and clearly 

eligible for OPIC support. A score of 100 or more qualifies a project as highly 

developmental. OPIC‘s long-term goal is to achieve an average development rating of 100 

across all business lines.
26

FINANCIAL SERVICES DEVELOPMENT IMPACT MATRIX (finDIP)

Over the past several years, OPIC support of financial sector projects has increased 

steadily. In order to capture accurately the developmental impact of these projects, OPIC 

developed the financial services development impact matrix (finDIP), using the XDIP 

framework and information gathered from other U.S. and multilateral agencies. The 

finDIP matrix consists of four Core Development Indicators, six Supplemental 

Development Indicators, and a GNP Per Capita Indicator:

o The four Core Development Indicators are financial instrument 

innovation/augmentation, capital mobilization, multiplier effects, and corporate 

governance.

o The six Supplemental Development Indicators are sustainability, economic 

diversification, macroeconomic and institutional impacts, corporate social 

responsibility, human capital improvements, and transfer of technology and 

knowledge.

o The GNP per Capita Indicator takes into account the host country‘s level of 

development and reflects OPIC‘s priority to steer investment into the poorest 

countries.

For the sake of consistency and uniformity, the finDIP and XDIP score ranges are the 

same. Scores range from 0 to 160 and are divided into three possible ratings. A score of 1 

to 49 is Minimally Developmental, 50 to 99 is Developmental, and 100 to 160 is Highly 

Developmental. Projects with a score of 0 are Not Rated. In general, OPIC refrains from 

supporting projects in which the development score falls below 50, unless the project 

serves a foreign policy priority or another priority of the Agency as determined by the 

President‘s office. The tool was implemented in Fiscal Year 2007, and data from the 

financial services development matrix is presented in the 2008 Policy Report.
27

Appendix E: Program Assessment Rating Tool

OPIC has been evaluated as “moderately effective”, and marked improvement across the board 

on a range of issues. Links to the assessment are available below. 

OPIC Insurance Program

See <http://www.whitehouse.gov/omb/expectmore/summary/10001169.2006.html>

OPIC Finance Program

See <http://www.whitehouse.gov/omb/expectmore/summary/10000388.2006.html>