The Agency has contracted with a private commercial bank for key loan servicing and financial management services for the UE accounts. Three new credit management positions have been established in the Environment Center to strengthen the UE portfolio oversight, and new manuals on UE loan collection and credit procedures are being developed. The UE Credit Program's performance measurement system has been modified from 1997 so that it now measures how well the program achieves its targets related to expanding the equitable delivery of urban environmental services and shelter. This will enable the City of Ahmedabad to finance sewer and water projects designed to sustain the city's economic growth, give slum-dwellers access to essential services, and improve the lives of Ahmedabad's more than three million residents. In FY 1999, the UE Credit Program will continue to focus on the urban poor.
Borrowers can be sovereign nations, private enterprises or joint public-private ventures.
Most of these non-sovereign projects are likely to involve a partial guarantee on loans extended by local intermediate financial institutions to targeted sectors. Moreover, the use of DCA will require a commitment to financial discipline by the host country participant that will lead to prudent and efficient use of U.S. assistance funds.