Press Release: DFC Approves Nearly $900 Million for Global Development Projects
The Board of Directors of U.S. International Development Finance Corporation (DFC) today approved $881 million in financing and political risk insurance for multiple projects that will advance development around the world. These projects mark the first approved by DFC’s Board since the agency’s official launch.
The projects approved will expand access to clean water, bolster marine conservation, and improve the availability of secure telecommunications. Two of the projects approved also advance DFC’s 2X Women’s Initiative, which aims to support investment in projects that are owned by, led by, or empower women across the developing world and advances the Administration’s Women’s Global Development and Prosperity (W-GDP) Initiative.
“The first projects approved by DFC’s Board underscore the agency’s commitment to investing in development,” said DFC Chief Executive Officer Adam Boehler. “By addressing some of the most critical needs in the developing world—from clean water to safe and secure telecommunications and women’s economic empowerment—these investments will change lives.”
Read Boehler’s report to the Board here.
Projects approved include:
- Improving the availability of secure telecommunications across the Indo-Pacific: A $190 million loan to Nevada-based Trans Pacific Networks (TPN) will support the world’s longest telecommunications cable. It will directly connect Singapore, Indonesia, and the U.S. and have the capability to serve several markets in Southeast Asia and the Pacific. The 5G-enabling digital infrastructure will improve the availability of secure international bandwidth capacity to the Indo-Pacific.
- Expanding access to clean water and sanitation around the world: A $100 million loan to WaterEquity’s Global Access Fund will finance household-level access to clean water and sanitation across Africa, the Indo-Pacific, and Latin America. This project advances the 2X Women’s Initiative to economically empower women, who are disproportionately impacted by poor access to water and sanitation in the developing world.
- Bolstering marine conservation in Kenya and Saint Lucia: $250 million and $100 million in political risk insurance will support “blue bonds” that bolster coastal economies in Kenya and Saint Lucia, respectively. The projects will establish long-term sources of funding for critical marine conservation activities in coordination with The Nature Conservancy.
- Investment in Mexico: DFC’s investment with IEnova—led by a female CEO and CFO—is the largest energy investment under the 2X Women’s Initiative. The $241 million in long-term debt financing will support a portfolio of assets that were developed by IEnova. The project underscores the positive role of private investment in the Mexican energy and power markets when it is allowed to develop.
Each of these investments is subject to Congressional notification.
DFC is a new U.S. Government agency that modernized the U.S. Government’s development finance capabilities—primarily the Overseas Private Investment Corporation (OPIC) and the Development Credit Authority (DCA) of the United States Agency for International Development (USAID). Equipped with a more than doubled investment cap of $60 billion and new financial tools, DFC has more resources and flexibility to invest in development, advance U.S. foreign policy, and generate returns for the American taxpayer.
Photo courtesy of Elias Castillo.