Congressional 

Budget 

Justification

Fiscal Year 

2014

Overseas Private Investment 

Corporation
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Table of Contents 

President’s Letter .......................................................................................................................... i

Overseas Private Investment Corporation – FY 2014 Budget in Brief ....................................... 1

New Resources Balanced by New Revenue ............................................................................... 2

FY 2014 Budget Request ............................................................................................................. 3

OPIC’s Value: Self-Sustaining, Efficient, Catalyzing Private Sector Development .................. 3

Administrative Resources and Strategic Technology Directly Drive Program and Revenue .... 5

OPIC’s Value to the Budget and Foreign Policy ......................................................................... 7

OPIC Supports National Security and Foreign Policy ................................................................ 7

Afghanistan ......................................................................................................................... 8

Pakistan ............................................................................................................................... 9

Iraq .................................................................................................................................... 11

Haiti................................................................................................................................... 12

Sub-Saharan Africa ........................................................................................................... 13

Cross Cutting Initiatives ................................................................................................... 14

Middle East and North Africa ........................................................................................... 15

OPIC Assists U.S. Businesses, including Small Businesses .................................................... 17

OPIC is Effective ...................................................................................................................... 18

Foreign Direct Investment Flows Outweigh ODA ........................................................... 19

OPIC as an Investment Multiplier .................................................................................... 20

OPIC is Efficient ....................................................................................................................... 20

OPIC Addresses Key Challenges and Market Failures ............................................................ 22

Renewable Resources and Energy Security ...................................................................... 22

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

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

APPENDIX A: Appropriations Legislation.............................................................................. 25

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

Program Account .............................................................................................................. 25

Transfer Authorities (General Provisions) ........................................................................ 25

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

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

APPENDIX C: OPIC Monitoring Methodology ...................................................................... 28

Labor ................................................................................................................................. 28

Environment, Social, Health, and Safety (E&S) ............................................................... 28

U.S. Economic Impact ...................................................................................................... 29

Developmental Impact ...................................................................................................... 29

APPENDIX D: The Partnership for Growth ............................................................................ 30

APPENDIX E: Policy Directive on Development.................................................................... 31

APPENDIX F: GPRA Annual Performance Plan/Report ........................................................ 32
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i 

President’s Letter 

American prosperity and national security are closely tied to stability and economic growth in 

developing countries. As the U.S. Government’s development finance institution, this link is at 

the core of OPIC’s work: mobilizing private investment into emerging and frontier markets so 

that jobs, growth, and prosperity can follow. We do that by using private sector financial tools to

remove barriers to U.S. companies investing in key emerging markets and fragile states – tools 

that make those important U.S. business investments possible. 

Across the globe, from the Middle East to East Africa to Asia, OPIC creates the kinds of 

business-to-business partnerships that are one of our most powerful foreign policy assets –

partnerships that help promote understanding across cultures, demonstrate that prosperity can be 

shared, and promote the best of American values and standards. 

As businesses become more and more global and emerging markets become important 

investment destinations, the role of the private sector in development is becoming increasingly 

powerful. Development finance institutions (DFIs) designed to channel private investment into 

sustainable economic development in emerging markets are rapidly growing actors in the foreign 

policy and development arena. 

Forty years ago, OPIC was carved out of USAID as President Nixon believed that a specialized 

development finance agency with banking and project finance skills was needed to support the 

U.S. private sector investing in emerging markets. It was a prescient idea. Since then, OPIC has 

catalyzed over $200 billion of U.S. investment for sustainable economic development in 

emerging markets. At the same time other DFIs have been created in Europe, China and 

elsewhere as the competitive landscape intensifies and countries seek to support their businesses 

investing in emerging markets. Financing from DFIs has grown four-fold just in the past 10 

years. And this increase does not include China, whose major efforts to support Chinese 

investment in key regions such as Africa, can have long term consequences for U.S. interests in 

the region. 

OPIC manages a $16.4 billion portfolio of private sector projects in 103 countries that 

tackle critical development challenges. OPIC has used tools such as political risk insurance to 

enable a U.S. company to build a $150 million power plant in Jordan, addressing chronic and 

crippling electricity shortages. In Rwanda, OPIC has used financing products such as a 20-year 

$3 million loan to help a horticulturalist from Tennessee invest in new vegetable and forestry 

propagating facilities that can boost agricultural productivity ten-fold – addressing hunger and 

self-sufficiency in Africa.

OPIC operates efficiently, effectively, prudently, and on a fully self-sustaining basis at no 

net cost to the American taxpayer. For every $1 invested in OPIC’s budget, $4 are generated 

in income to the taxpayer. Every $1 invested in our budget generates $155 in development 

dollars. OPIC generates hundreds of millions of dollars in income every year for U.S. taxpayers. 

In FY 2012, OPIC wrote off less than one percent of its portfolio to a final loss. The OPIC 

1

Overseas Private Investment Corporation – FY 2014 Budget in Brief 

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

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

foreign policy. OPIC achieves its mission by providing financing, political risk insurance, and 

support for private equity investment funds. 

In 1971 OPIC was carved out of USAID with the vision of a specialized development finance 

agency where top banking and project finance skills could be used to mobilize and support the 

private sector. In 1971 total foreign direct investment (FDI) into developing economies was 

approximately half of bilateral Official Development Assistance (ODA). In 2010, FDI 

outweighed bilateral ODA by a ratio of 7:1. In those 40 years, OPIC has catalyzed over $200 

billion in investment in sustainable economic development in emerging markets. 

Today, OPIC operates on a self-sustaining basis at no net cost to American taxpayers – managing 

a $16.4 billion portfolio of projects in more than 103 countries, and contributing to deficit 

reduction for the last 35 years. The FY 2014 budget would generate estimated net budget 

income of $198.2 million, $6 million more than the FY 2013 request to Congress. 

OPIC Reduces the Deficit – OPIC generates more income than it uses, producing $4 in 

collections for each $1 of administrative appropriations, thus generating net revenue within 

the International Affairs budget and reducing the deficit. 

OPIC Supports National Security and Foreign Policy – OPIC mobilizes private capital to 

help solve critical development challenges and advance U.S. foreign policy in the most 

challenging environments, including the following countries and regions: 

 Afghanistan 

 Haiti 

 Iraq 

 Middle East and North Africa 

 Pakistan 

 South East Asia 

 South Sudan 

 Sub-Saharan Africa 

In addition, OPIC is a valuable asset to initiatives such as the Asia Pacific Energy 

Partnership, Feed the Future, and the Partnership for Growth. 

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

U.S. businesses expand into and export into emerging markets. It allows SMEs, which have 

the most growth and employment potential, to access fast growing emerging markets. Thus, 

OPIC supports U.S. jobs and exports. 

By supporting investments in infrastructure, agriculture, education, and financial services in 

developing countries, OPIC expands access to clean energy, reduces poverty, improves lives and 

creates new markets for American businesses. 

3

FY 2014 Budget Request 

The proposed FY 2014 request for increased resources will: 

Build and expand on OPIC’s existing self-sustaining and cost effective business model; 

Enable OPIC to maintain prudent portfolio and financial management standards as 

OPIC’s portfolio grows;

Allow OPIC to use more of its own resources, from its own balances, not from the 

General Fund of the Treasury; 

Continue and expand OPIC’s contribution to deficit reduction; 

Create a platform which will enable as much as $6 billion in OPIC program levels per 

year by FY 2016. 

Every dollar of this increase in OPIC’s budget will leverage private investment – creating 

sustainable, private sector-led development. This kind of private sector-oriented and self-funded 

approach will become critically important as private FDI flows grow and as budgetary resources 

become more limited. 

OPIC’s Value: Self-Sustaining, Efficient, Catalyzing Private Sector Development 

 

OPIC has a unique value to the budget as directly supporting foreign policy and development, 

while at the same time generating income. With the likelihood of limited budgetary resources, 

approaches such as OPIC’s are a critical solution to supporting development goals in a flexible 

and cost-effective way. 

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

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

does this by charging market-based fees and premiums for its loans and insurance. This income 

enables OPIC to generate more income than it spends and thus build reserves without drawing on 

the U.S. Treasury. 

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

down through the design of its accounting systems – reflects its charter as a self-sustaining 

business. OPIC’s operations generate income, create capital, and set aside resources for the 

activities of the business. OPIC does not draw resources from the General Fund of the Treasury 

– rather OPIC invests its net earnings in Treasury securities and thus lends to the Treasury. 

OPIC’s reserves now total $5.3 billion invested in Treasury securities.1 These reserves insulate 

the Treasury from the risk that its portfolio might generate losses in excess of those already 

budgeted. 

The growth path supported by this budget will help OPIC by diversifying the agency’s exposure 

and developing best-practice institutional capabilities to monitor, manage, and minimize risk. 

This is vital to extending OPIC’s self-sustaining record. 

 

1

“Daily Principal Outstanding Report” as of March 29, 2013 at http://fedinvest.com/govt/reports/fip/podr/dfi prin 20130329.pdf#page=84
4

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

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

FY 2012 FY 2013 FY 2014

$ in millions Enacted

PL 112-74

Actual Request Full Year CR

PL 113-6*

Request

Resources

 Administration $54.99 $54.99 $60.78 $54.99 $71.80

 Credit Program $25.0 $25.0 $31.0 $25.0 $31.0

Net Collections ($277.0) ($345.7) ($284.0) ($284.0) ($301.0)

 Net Budget ($197.0) ($265.7) ($192.2) ($204.0) ($198.2)

Commitments

 Finance and Funds $3,100 $2,961.4 $4,050.0 $2,950.0 $4,900.0

 Insurance $600 $668.0 $800.0 $800.0 $800.0

Total Program $3,700 $3,629.4 $4,850.0 $3,750.0 $5,700.0

 Renewables $700 $1,572.1 $875.0 $750.0 $1,000.0

* FY 2013 data do not reflect 5 percent sequestration reduction. 

OPIC’s request for additional resources is justified for several reasons: 

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

at the Treasury. 

OPIC’s proposed budget can be completely offset with the negative subsidy 

generated by its transactions. 

OPIC is efficient with its resources. 

o OPIC is a small agency at approximately 220 full-time equivalents (FTE) staff 

supporting a portfolio of more than 500 transactions and more than $16.4 billion

in outstanding commitments. 

o OPIC has, over its history, mobilized $2.68 in non-Federal resources for each $1 

of its insurance and finance commitments. 

o In FY 2012, each OPIC employee generated an average of $16.5 million in new 

commitments and $1.2 million in revenue for the federal government.

In FY 2012, OPIC’s positive effect on the federal budget totaled $257 million – the 35th 

consecutive year that OPIC has contributed to reducing the budget deficit. On a private-sector 

basis, OPIC had audited net income of $272 million in FY 2012. OPIC is one of the very few 

U.S. government agencies that regularly generates a return for the American taxpayer. 

6

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

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

information technology systems, in particular: 

Systems Life Cycle Management 

o Replacing obsolete systems – Legacy system replacement is a critical systems 

life cycle management component. Core systems such as Staff Central (OPIC’s 

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

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

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

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

efficiency. 

o Cloud Transition – Transition to the cloud, to include functional elements such 

as e-mail, knowledge management, and collaboration technologies will require 

planning, management and oversight of the all phases of the migration, including, 

risk management, security transition, execution, and long-term management of the 

service level agreements with commercial vendors.

o Enterprise Business Reporting Solutions and Management – Meeting 

Congressional, OMB, Treasury and internal, senior management reporting 

requirements calls for the development of effective reporting solutions. These 

solutions are evolving and require ongoing analysis, development and 

maintenance as external and internal reporting requirements progress. 

Mission and Operation Support 

o Network Infrastructure Management – Compliance with government-wide 

requirements, continuous operations and maintenance, and a needed rolling 

replacement of obsolete and unreliable equipment require ongoing resources. 

o Compliance and Security Function Consolidation – Electronic records, 

privacy, security, continuity, and other associated federal security and compliance 

requirements must be further aligned, implemented, and maintained across the 

organization. 

o Continuous Process Improvement and Workflow Integration – OPIC’s 

production processes have significant functional areas that remain manual or are 

inefficient. Antiquated processes and a lack of workflow integration necessitate 

technological improvements that are traditionally unfunded because fulfilling 

government requirements takes priority. 
7

Customer Service - Improvement and Innovation 

o Accessibility to Services – The development and implementation of application

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

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

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

similar functionality will continue to increase customer accessibility to OPIC’s

services and in turn, result in increased earnings and development impacts.

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

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

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

offers a streamlined customer interface where all OPIC products and associated

activity is available, the customer can submit or request information with ease,

and self-servicing account management is conventional. This critical interface

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

management and processes, and overarching data integration across OPIC

products.

OPIC’s Value to the Budget and Foreign Policy 

The OPIC development finance model is an effective way to support sustainable development 

because it deploys private market entrepreneurship and discipline. It is an efficient way to 

conduct private sector-led development because it is self-financing and generates income for the 

American taxpayers and the federal budget. 

OPIC Supports National Security and Foreign Policy 

OPIC works in some of the most challenging transitional environments, including economies 

entering post-conflict reconstruction. Achieving long-run, strategic goals in these economies 

requires sustainable development where equity and lending are hard to mobilize. It is in these 

circumstances that OPIC’s provides unique support for U.S. policy. Examples include:

Egypt and the MENA Region – 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 primarily for infrastructure projects in Egypt. 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. 

Afghanistan – OPIC has supported numerous

 OPIC is also 

*

* 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.
8

Iraq – OPIC provided insurance and financing to construction companies rebuilding Iraq’s 

infrastructure and financing to a nonprofit lending institution with nearly $35 million in 

commitments to extend loans to small and middle-market enterprises that will stimulate 

employment growth and the development of a private sector economy. 

OPIC’s work responding to foreign policy and national security challenges has a long history. 

Some historical examples include: 

Gulf War – In the aftermath of the invasion of Kuwait, OPIC provided insurance for the 

renovation of the Bayan Palace, Kuwait’s international conference center and a government 

office. 

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

Rwanda after the genocide, investing in a tea plantation. 

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

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

lending to small- and medium-sized enterprises. 

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

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

across the country. 

In addition, there are several countries and areas where OPIC has a long history of mobilizing 

private investment.

Afghanistan 

Since 1974, OPIC has committed more than $298 million in support of 40 projects in 

Afghanistan. OPIC supports the Administration’s effort to create sustainable jobs in population 

centers by targeting four sectors: 

Access to capital for small and medium enterprises (SMEs) 

Infrastructure development in priority regions 

Humanitarian assistance 

Agriculture and food security 

OPIC’s portfolio in Afghanistan currently totals $225 million across 19 projects, including: 

*

* 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

OPIC is completing due diligence on several high priority projects, including: 

Pakistan 

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

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

region by focusing on: 

Access to capital for SMEs 

Infrastructure development (housing, energy, telecommunications) 

Humanitarian assistance and disaster response 

OPIC’s portfolio in Pakistan currently totals $299 million across 14 projects, including: 

SME Credit – OPIC is financing $7 million to help launch a microfinance institution 

with branches across the country and is providing a $21.5 million loan guarantee to help 

*

*

*

*

*

* 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

expand its microfinance portfolio. That portfolio 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 (Manufacturing) – OPIC is financing $1.2 million for the manufacture 

of water treatment equipment. 

Infrastructure (Telecommunications) – OPIC is financing $33.3 million for one of 

Pakistan’s largest cellular service providers and $9.8 million for the construction of 

telecommunications towers. 

Infrastructure – OPIC is financing $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 expected to be completed in 2012, and has already attracted interest from 

a range of businesses—representing industries from oil and gas to mobile technology. 

With leasing commitments from companies, the office space is expected to bring new 

management and professional employment opportunities. 

Renewable Energy (Biomass) – OPIC is financing $16.7 million for a 12 MW biomassfueled 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 (Wind) – Financing for a 50 MW wind plant in southeastern 

Pakistan to generate emission-free electricity was approved by the Board in March 2013. 

This sustainable power facility will help Pakistan, which now relies on high-priced fuel 

oil, diversify its power generation. It will also help Pakistan reduce chronic power 

shortages, bringing important benefits to the economy and the Pakistani people. 

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

a biomass-fueled power plant.

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

development. 

Agriculture - Financing to support the contract farming, processing, packaging, and 

exporting of rice. 
11

Natural Gas - Financing for two liquefied natural gas (LNG) projects comprising the 

regasification of imported LNG and subsequent delivery of the gas to Pakistan’s natural 

gas system addressing a national shortage of gas. 

Iraq 

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

OPIC’s portfolio in Iraq currently totals $196 million across 7 projects, including: 

Construction – Through a 10-year, $20.5 million direct loan, OPIC supported the 

formation of Northern Gulf Rentals, a lessor of heavy equipment for use in construction 

projects, which offers leases ranging from one day to over a year. 

 

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

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

loans to businesses, especially SME’s, including in the agricultural sector. In FY 2012, 

OPIC provided nearly $35 million in financing to support loans of up to $5 million to 

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. 

Infrastructure (Equipment) – OPIC insures $500,000 for an Iraqi-American company 

that provides construction equipment, machinery, generators, and transformer substations 

to companies doing business in Iraq. 

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

organization to support its activities and services in Iraq. 

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

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

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

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

one million units. 

Tourism (Hotels) – OPIC is financing $50 million for the construction of a Doubletree 

Suites Hotel in Erbil, Kurdistan. 
12

OPIC is currently completing due diligence on several projects in Iraq, including: 

Infrastructure (Equipment) – Financing to support the leasing of heavy construction 

equipment. 

Infrastructure (Water) – Insurance to cover the sales and installation of 650 irrigation 

systems and related equipment to the Ministry of Agriculture. 

Haiti 

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

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

Food security 

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

Renewable Resources 

Expanding credit to SMEs

Currently, OPIC’s portfolio in Haiti totals over $76 million across 6 projects, including: 

Agriculture and Food Security – OPIC is providing $44 million in insurance for the 

expansion and reconstruction of Les Moulins d’Haiti, a flour mill that was destroyed in 

the 2010 earthquake. The mill had produced as much as 95 percent of the flour consumed 

in Haiti, and restarting the mill has increased the country’s food production capacity and 

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

products have long been staples of the diet in Haiti, particularly among the country’s lowincome families. Reconstruction of the facility – including a flour mill, storage silos,

machine shop, and warehouse – began in February of 2010 and was completed in 

December 2011. Along with increased production capacity and more modern equipment, 

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

to support at least 100 local jobs. 

Infrastructure and Manufacturing – Through a $6 million direct loan to Haiti 360, 

OPIC is supporting three concrete production plants that are expected to accelerate and 

facilitate reconstruction efforts and generate local jobs. In 2012 alone, 500 homes were 

built with concrete from the new plants, as was a second airport runway in Cap Haitien 

large enough to accommodate long-range jetliners. The project also involves USAID as it 

assists with concrete production for affordable homes throughout the country. The 

recipient of OPIC’s financing has become the top concrete producer in Haiti.

Housing – OPIC provided $17 million in long-term loans to Development Innovations 

Group (DIG), a Maryland-based finance and development firm, in conjunction with a $6 

million grant from USAID, and $3 million from the Clinton Bush Haiti Fund. This 

project addresses a critical need for housing finance in Haiti, where more than 360,000 

people continue to live in tents and other temporary housing following the 2010 

earthquake. The project is creating three new loan products targeting low-income 
13

borrowers, including housing microfinance loans that start at $1,000 and micromortgages that start at $5,000. The project is also providing access to credit to the 

economically active poor to build, repair, improve, or expand homes, or to help business 

owners rebuild and re-open their businesses. It is estimated that more than 4,000 Haitians 

stand to benefit from the Project. 

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

Financial Services – Financing to extend existing prepaid transaction card and other 

lines of financial services, including microfinance, merchant services, and payroll. 

Manufacturing – Financing for the manufacturing of packaging components for the sale 

and shipping of local products, a move that will enable the Haitian economy to increase 

exports. 

Sub-Saharan Africa 

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

Sub‐Saharan Africa. 

Through sustainable investments in communities and resources, OPIC supports the 

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

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

Credit for SMEs 

Infrastructure development (energy, construction, and housing) 

Agriculture and food security 

Renewable resources. 

OPIC’s portfolio in Sub‐Saharan Africa currently totals $3.74 billion across 112 projects. 

West Africa – Over $1.829 billion for projects in West African countries, including: 

Financing for Energy Efficiency in Nigeria – OPIC is providing $37.8 million in 

political risk insurance to support the construction of three Combined Heat and Power 

(CHP) generation plants 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, lowering carbon emissions, while also supporting local economic 

development. 
14

Insurance for Medical Supplies in Ghana – OPIC is providing $246 million in political 

risk insurance to support the provision of medical equipment and personnel training at up 

to 100 hospitals. The recipient company is partnering with Ghana’s Ministry of Health to 

address a Ministry priority: supplying hospitals with equipment such as oxygen 

generator systems, MRI machines, CT scanners, digital image management systems, 

critical care packages, medical waste treatment plans, and mobile clinics. Ghana’s 

Minister of Health has said that the project will help close a significant gap in the 

delivery of specialty medicine while impacting all 10 administrative regions. By 

increasing the availability of mobile specialized clinics, the project seeks to benefit low‐

and middle‐income Ghanaian residents. The project is also expected to generate 

approximately $147 million in U.S. exports. 

Central Africa – Over $83 million for projects in Central African countries, including: 

Insurance for Manufacturing in Congo and the DRC – OPIC is providing $45 million 

in political risk insurance for Seaboard Corporation to construct and expand flour mills 

in both Congo and the Democratic Republic of Congo. The project also includes work on 

animal feed facilities in Congo and a cargo handling facility in the DRC. The facilities 

are increasing the countries’ food producing capacities and domestic food security. The 

cargo handling facility is an important contribution to the infrastructure that will be 

important for the DRC’s economic growth.

East Africa – Over $462 million for projects in East African countries, including: 

Financing for Microfinance in Tanzania – OPIC is providing $12 million in financing 

for Bangladesh Rural Advancement Committee (BRAC)-owned microfinance 

institutions (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. 

Cross Cutting Initiatives 

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

needs. OPIC’s ability to begin delivering on President Obama’s commitments to the Middle 

East and North Africa less than three months after an announcement was made demonstrates 

OPIC’s effectiveness and value as a flexible foreign policy tool and cost-effective development 

agency. 

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

Global Climate Change Initiative, the Partnership for Growth, Sub-Saharan Africa Presidential 

Policy Directive, and support for the Middle East and North Africa. 
15

Figure 2 MENA Portfolio

$1.8 

$2.9 

$2.5 $2.6 

$3.3 

$- 

$1.0 

$2.0 

$3.0 

$4.0 

2008 2009 2010 2011 2012

Billion USD

MENA Portfolio Exposure

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

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

foreign policy objectives. 

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

Partnership for Growth – OPIC supports sustainable economic development in priority 

countries (See page 30 for more detail). 

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

mechanism to support clean energy financing in Sub-Saharan African and LDC countries 

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

Development Agency (See page 23 for more details). 

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

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

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

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

percent) of all U.S. “Fast Start” climate financing. 

Middle East and North Africa 

OPIC has a long and successful history 

as a catalyst for private-sector 

investment in the Middle East and 

North Africa (MENA). For over 35 

years, OPIC has supported investment 

in MENA by providing the capital and 

risk mitigation tools that investors need 

to overcome the many barriers faced in 

the region. Since 1974, OPIC has 

committed $8.8 billion in 480 projects 

in the MENA region. 

Sweeping changes in the MENA region, including revolutions in Egypt and Tunisia, have made 

OPIC’s work even more critical. OPIC’s work here has been fueled by the recognition that 

private capital investment is essential for security, stability, growth, and job creation, and that 

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

and shared prosperity. 

In March 2011, Secretary of State Hillary Clinton announced up to $2 billion in OPIC financial 

support to catalyze private sector investment in the MENA region. Separately, in May 2011, the 

President announced that OPIC would provide up to $1 billion in new financing to support 

infrastructure and job creation in Egypt. 
16

OPIC has already delivered substantially on the $2 billion target for the MENA region, having 

committed $1.1 billion in financing and insurance to date in critical sectors including 

infrastructure, support for small and medium sized enterprises, franchising, and financial 

services. OPIC has also made significant progress towards an additional $1 billion target for 

Egypt, having committed more than $425 million in financing and insurance to date, in critical 

sectors including support for SME lending, transportation, finance, information technology and 

franchising. 

OPIC’s commitments to date cover several important sectors, including those addressing the 

region’s critical energy needs and providing much needed support for SMEs to spur economic 

activity and job creation throughout the region. SMEs are the universal engines of economic 

growth and job creation, providing some 97 percent of all jobs in emerging economies and 

contributing approximately 50 percent to GDP. 

Countries across the MENA region are faced with growing energy needs that are vital to their 

economic growth and prosperity. OPIC has played an active and highly catalytic role in 

supporting private sector investment in this sector as well. 

In FY 2012, OPIC highlighted the following achievements in the MENA area: 

Less than three months after Secretary Clinton’s original announcement of support, OPIC’s 

Board of Directors approved two loan guarantee facilities to support lending through local 

banks to SMEs in Egypt and Jordan. OPIC’s $250 million loan guarantee facility in Jordan 

is expected to create more than 31,500 jobs, while supporting the creation of many more 

indirect jobs. Agreements with two Jordanian banks have already been signed, totaling $45 

million in loan guarantees. Similarly a $250 million loan guarantee facility in Egypt is 

expected to create a significant number of jobs and expand credit to the underserved SME 

sector. These facilities could leverage up to $1.4 billion in combined lending to SMEs, 

which are the drivers of growth and employment in both countries, and will enhance stability 

and contribute to sustainable economic development across the region. 

OPIC is also exploring providing financing to support SME expansion and franchising 

opportunities in Tunisia. OPIC’s $50 million loan guarantee facility is intended to support 

local bank loans to SMEs, franchisees, and their suppliers to stimulate growth in Tunisia’s 

private sector, create jobs, and improve the franchise sector supply chains.

OPIC has provided a $10 million loan to an NGO in the West Bank to expand educational 

opportunities for Palestinian children through loans to support the purchase of computers for 

students. 

OPIC is continuing to pursue a number of other financing opportunities with U.S. companies 

and financial institutions, such as Coca-Cola, GE, Bechtel, FedEx, First Solar, JP Morgan, 

and Citibank, in the renewable energy, housing, health, infrastructure, and agricultural 

sectors in the region. 
17

OPIC Assists U.S. Businesses, 

including Small Businesses 

U.S. companies, both large and small, 

seek to compete in new markets but are 

often faced with a host 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 

products are tailored to client needs and 

are unavailable in the private 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 two decades, OPIC has provided approximately $5.8 billion in direct loans in support of

U.S. small businesses. In FY 2012, U.S. small businesses were involved in almost three-quarters 

of OPIC’s projects. In addition, OPIC projects committed in FY 2012 are expected to procure an 

estimated $37 million from U.S. small businesses. 

75%

25%

Percent of OPIC Projects with 

Small Businesses

Five-year average (2008-2012) 

Small Businesses

Other

Figure 3

19

Foreign Direct Investment Flows Outweigh ODA 

At a macroeconomic level, OPIC’s role as a catalyst for the private sector should be considered 

within the context of recent shifts in the balance of private flows versus official aid flows to 

developing countries. 

FDI flows have grown far faster than Official Development Assistance (ODA). In 2011, $5.11

of FDI flowed to developing countries for each dollar of total multilateral and bilateral ODA. 

Focusing on bilateral ODA, this figure rises to $7.28.2

Private Foreign Direct Investment Exceeds Bilateral ODA by 7:1

Figure 6 FDI versus Overseas Development Assistance (UNCTAD, OECD DAC) 

Private resource flows are driving external finance in developing countries. While sometimes 

volatile, FDI flows continue to grow at rates far faster than ODA. These resource flows are 

critical sources of finance for developing economies. OPIC is the tool by which the U.S. 

Government influences the amount and direction of these flows to align to development 

objectives and standards. 

 

2

http://stats.oecd.org/Index.aspx?DatasetCode=TABLE1 and http://unctadstat.unctad.org/TableViewer/tableView.aspx?ReportId=88 

21

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

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

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

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

economies of scale, and affect broader development outcomes. 

 

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

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

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

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

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

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

provide financing and political risk insurance to greater numbers of small businesses 

doing business in developing countries. By empowering such service providers, the 

network results in more efficient, cost-effective delivery of services to American and 

local businesses. OPIC now deploys a network of 121 private sector partners and 

business consultants that generate, screen, and prepare transactions on a fee-for-success 

basis. This significantly reduces staff time in screening and advising prospective clients. 

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

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

development finance institutions such as the International Finance Corporation, to 

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

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

impact with fewer resources. 

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

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

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

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

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

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

of application errors. 

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

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

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

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

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

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

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

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

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

improve internal operations, and has achieved savings in core technology costs and nonsalary administrative costs. 

23

Projected Growth in Fuel Types As population and economies grow, so does the demand 

for power. Renewable energy is becoming an 

increasingly practical solution to the power shortages 

around the world. For example, one OPIC loan supports 

development, construction and operation of two 20 MW 

solar power projects to supply Peruvians with much 

needed power. Using solar technology developed by a 

U.S. company, the project will sell all the electricity it 

produces to the national grid and thereby support Peru’s 

effort to diversify its sources of electricity generation. 

FY 2011 was OPIC’s most successful year in the 

renewable resources sector, by every measure and by a 

considerable margin. In FY 2011, our commitments in 

the renewable sector generated a seven-fold increase 

over FY 2010 in the amount of expected CO2 emissions 

avoided and quadrupled the expected megawatts generated from renewable energy sources in 

OPIC-supported projects. In fact, from FY 2010 to 2011, MW increased nearly four-fold (70.2 

MW to 277.8 MW) and CO2 emissions avoided increased seven-fold (126,000 tons to 931,000 

tons). In FY 2012, our commitments to renewable resources projects are expected to generate an 

additional 200 MW of renewable power and help avoid nearly 350,000 tons of CO2 emissions. 

In addition, in FY 2007, OPIC announced its goal of reducing greenhouse gas emissions in its 

portfolio of projects by 20 percent over the next 10 years. Since then, OPIC has established an 

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

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

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

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

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

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

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

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

U.S.-ACEF is a new four-year, $15 million program 

being implemented by OPIC, in collaboration with the 

U.S. Department of State, the U.S. Trade and 

Development Agency (USTDA), and USAID. The goal 

of the program is to catalyze private sector investment in 

the African clean energy sector by providing support for 

project development costs. 

Energy access is a major constraint to development in 

Africa, as nearly 68 percent of Sub-Saharan Africans do 

Source: International Energy Outlook 2010. Energy 

Information Administration. May 2010

 

92%

70%

58%

38%

29%

Renewables

Coal

Natural Gas

Liquids

Nuclear

“If we can remove some of the risk 

and cover some of the costs of 

preparing a project, we believe we 

can spur significant new private 

investments in clean energy. And 

that is the idea behind the 

partnership we are announcing 

today.”

Secretary Clinton

At Rio+20, the United Nations 

Conference on Sustainable 

Development

Rio de Janeiro, Brazil (June 22, 2012) 

Figure 9
24

not have access to electricity5. Yet the African continent possesses abundant clean energy 

resources waiting to be harnessed. 

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

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

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

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

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

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

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

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

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

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

other regions and sectors.

 

5World Bank, World Development Indicators, http://wdi.worldbank.org/table/3.7
25

Appendices 

APPENDIX A: Appropriations Legislation 

Noncredit Account 

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

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

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

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

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

$35,000) shall not exceed $71,800,000: Provided further, That project-specific transaction costs, 

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

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

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

the purposes of this heading. 

Program Account 

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

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

Corporation 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 2014, 2015, and 2016: Provided further, That 

funds so obligated in fiscal year 2014 remain available for disbursement through 2022, funds 

obligated in fiscal year 2015 remain available for disbursement through 2023, and funds 

obligated in fiscal year 2016 remain available for disbursement through 2024: 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. 

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, 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. 
26

Export Financing Transfer Authorities 

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

available for fiscal year 2014, for programs under title VI of this Act may be transferred between 

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

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

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

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

Committees on Appropriations. 
27

APPENDIX B: Measuring Development Impact Matrix 

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

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

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

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

shelter, food, water and health care. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

fiscal and foreign exchange impacts. For projects involving financial services, this factor 

measures the amount of funds to be disbursed, as well as the impact on micro, small, and 

medium-sized enterprises, entrepreneurship, and home ownership. 

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

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

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

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

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

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

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

will target underdeveloped areas or underserved, poor populations. 

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

developmental and clearly eligible for OPIC support. 
28

APPENDIX C: OPIC Monitoring Methodology 

OPIC performs comprehensive and integrated monitoring to evaluate the U.S. and host-country 

economic effects as well as the environmental, social, health and safety, and general working 

conditions of the projects it supports. OPIC’s integrated project monitoring is designed to ensure

that each project complies with statutory and contractual requirements in these areas. Project 

monitoring consists of site visits to projects in addition to the analysis of information submitted 

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

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

insurance contract. 

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

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

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

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

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

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

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

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

ultimately provides a conservative bias to the monitored results. 

Labor 

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

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

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

sectors with a higher potential for possible worker rights violations. 

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

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

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

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

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

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

include independent and confidential interviews with employees and management. Interviews 

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

and organized labor groups. 

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

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

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

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

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

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

against applicable benchmarks including contract conditions, international standards and 
29

guidelines, and industry best practices. Factors incorporated in the performance assessment 

include an evaluation of the project’s environmental and social management systems, the 

effectiveness of mitigation, including pollution controls in risk reduction, and the efficiency of 

the operations, including energy efficiency. 

U.S. Economic Impact 

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

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

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

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

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

1974.

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

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

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

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

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

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

export markets). 

Developmental Impact 

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

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

original estimates and actual operations. For example, if a project originally expected to hire 100 

local workers, actual employment numbers are verified and compared to this forecast. 

Additionally, if a project is expected, for example, to build a school for the children of its 

employees, this will be verified. Other developmental impacts not identified or anticipated at the 

time of application also are evaluated and quantified during site monitoring. Finally, the project 

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

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

OPIC review. 
30

APPENDIX D: The Partnership for Growth 

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

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

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

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

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

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

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

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

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

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

financial and risk mitigation tools have been essential to supporting increased investment into 

PFG countries and delivering on the Administration’s commitment to supporting broad-based 

economic growth. OPIC’s expertise in supporting investments in renewable energy and financial 

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

targeted in Ghana and Tanzania, as well as access to credit highlighted in Ghana. 

OPIC is open for business in all four PFG countries. In Ghana and Tanzania, OPIC enables 

agricultural productivity, helps expand small and medium enterprise lending, and furthers 

investments in critical infrastructure. Since 1975, OPIC has invested more than $817 million in 

40 projects in Ghana with a current portfolio of $835 million in 6 projects. Since 1984, OPIC has 

invested more than $157 million in 13 projects in Tanzania with a current portfolio of $30 

million across 6 projects. In the Philippines, OPIC furthers investments in critical infrastructure 

projects including those that promote clean technology and renewable resources. Since 1974, 

OPIC has invested more than $2.6 billion in 145 projects in the Philippines, with a current 

portfolio of $390 million across 6 projects. Since 1976, OPIC has invested more than $359 

million in 35 projects in El Salvador. Currently there is one active project in the portfolio valued 

at $1.4 million. OPIC is working with several potential sponsors on financing worth up to $60 

million in the securitization of a small portfolio of mortgages and a renewable energy project. 

OPIC has a substantial pipeline of projects in PFG countries, and is contributing to the process, 

including $407 million in Ghana. For example, in March 2012, OPIC’s Board of Directors 

approved $180 million in political risk insurance to support the rehabilitation of nearly half the 

municipal water purification systems in Ghana. According to the World Health Organization and 

UNICEF only an estimated 37 percent of Ghana’s urban homes and less than four percent of 

rural ones have piped water connections. 

This investment is central to Ghana’s National Water Policy, which aims to increase the 

availability of clean water from 61 percent to 85 percent of the population by 2015. It will also 

help reduce waste by increasing the efficiency of the country’s water treatment plants from 77 

percent utilization to 100 percent. The lack of clean drinking water and sanitation systems in 

Ghana cause more than 20,000 deaths annually through dysentery and other waterborne diseases. 

A World Bank analysis reports that health costs from poor water and sanitation hygiene cost 

Ghana the equivalent of 2.1 percent of annual GDP. 
31

APPENDIX E: Policy Directive on Development 

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

Global Development.6 The directive provides guidance for federal agencies on the President’s 

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

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

Pillars Key Approaches OPIC’s Role

A policy focused on sustainable 

development outcomes that places a 

premium on broad-based economic 

growth, democratic governance, gamechanging innovations, and sustainable 

systems for meeting basic human 

needs;

Foster the next generation of 

emerging markets by enhancing our 

focus on broad-based economic 

growth and democratic governance.

Game-Changing Innovations

Private sector-led growth is most likely to 

be self sustaining because it focuses 

capital on efficient uses.

OPIC combines creative and flexible 

financial tools with the innovation of the 

U.S. private sector 

A new operational model that positions 

the United States to be a more effective

partner and to leverage our leadership; 

Be more selective about where and 

in which sectors it works.

Underscore the importance of 

country ownership and responsibility

Leverage the private sector, 

philanthropic and nongovernmental 

organizations, and diaspora 

communities.

Strengthen key multilateral 

capabilities

Drive our policy and practice with 

the disciplined application of analysis 

of impact

OPIC leverages the capital and skills of the 

private sector and U.S. business in support 

of private-sector-led initiatives.

By mobilizing and shaping Foreign Direct 

Investment and private resources – OPIC 

multiples federal dollars. 

OPIC collaborates with DFI’s and bilateral 

aid agencies.

OPIC’s projects are aligned with private 

sector goals and thus are self-targeting to 

efficient uses of capital.

A modern architecture that elevates 

development and harnesses 

development capabilities spread across 

government in support of common 

objectives. 

Elevate development as a central 

pillar of our national security policy, 

equal to diplomacy and defense, and 

build and integrate the capabilities 

that can advance our interests.

Establish mechanisms for ensuring 

coherence in U.S. development 

policy across the United States 

Government.

Foster the integration of capabilities 

needed to address complex security 

environments.

OPIC’s three-pronged mission of 

development, foreign policy, and support 

for U.S. businesses supports this approach

The private sector provides the bulk of 

external resources to the developing 

world. A modern architecture requires a 

Federal capability to influence these flows.

The long run solution for complex 

humanitarian and security challenges 

inevitably requires broad based economic 

development. 

OPIC has unique tools and skills within the 

federal government to support and 

mobilize private capital.

 

6

http://www.whitehouse.gov/the-press-office/2010/09/22/fact-sheet-us-global-development-policy
32

 

APPENDIX F: GPRA Annual Performance Plan/Report 

 

7

In FY 2013, OPIC updated its development scoring methodology. The update included decreasing the full range of development scores from a 

rating range of 1-160 to a rating range of 1-100. This change was implemented to streamline the scoring process and standardize the agency’s 

rating methodology with industry best practices. The new target in FY 2013 reflects the change in scoring methodology and normalizes it to past 

targets. Projects that receive a score in the range of 25-59 are considered developmental.

8

Targets are based on an anticipated reduction in CO2 emissions, from 2008 baseline levels by 2014.

9

Estimate as of April 1, 2013.

GPRA Strategic 

Goal

Strategic 

Objective

Performance 

Plan

Outputs and 

Outcomes

FY 2012 FY 2013 FY 2014

Target Actual Target Target

Grow Portfolio 

Impact

Aim for high 

development 

impact

Projects with 

development 

scores 

evidencing 

80 84 50750

Increase 

commitments

Millions of 

dollars in finance 

and insurance 

project 

commitments

$2,000 $3,629 $3,750 $5,700

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

$700 $1,572 $750 $800

Minimize GHG 

emissions across 

portfolio

Millions of tons 

of CO2 emitted 

by projects in the 

OPIC portfolio8

36 32.7936 36