For inclusion in trend analysis, minimum activity data of three years required for each facility. It also will allow the agency to leverage its resources more effectively, while using sound, prudent risk-assessment procedures. First, ECA may be used to promote any of the developmental objectives of the agency, while the UE program specifically targets developing innovative approaches to the provision of urban and environmental services for the urban poor. Second, through the use of partial guarantees on financially sound development projects, ECA emphasizes developing the capacity of local financial institutions to assess and manage risk. The UE program, which generally finances projects with matching funds from host country participants, aims to forward policy agendas to improve the urban poor's living conditions and to empower them to play an active role in the development of their communities.
Borrowers can be sovereign nations, private enterprises or joint public and private ventures.
Most of these non-sovereign projects are likely to involve a partial guarantee on loans extended by a local intermediate financial institution to targeted sectors. Moreover, the use of ECA 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. Urban development contributes directly to economic growth through capital formation and employment generation and has a strong impact on local and national economies. The UE program will use guaranties to engage creditworthy public and private institutions in the investment of urban environmental infrastructure to improve the lot of poor communities. The creation of the UE program will involve a transformation of its predecessor program.