TCGI Approach to Municipal Finance (Continued)

Create Results. It is not enough to create enabling conditions and implementing capacity; we are driven by results. Our efforts are focused on improving quality of life for communities and our measure of success is based on the number of completed projects. We succeed in reaching our goals through the use of:

Innovative Finance. TCGI prides itself on the use of innovative financing. In India, we have established new financial instruments, municipal bonds, to finance local infrastructure development. In Jamaica, we explored the use of remittance bond financing. In Kyrgyzstan, we structured a microloan program to assist rural communities in accessing potable water.

Layered Financing. Our innovative approach extends to our financing structures. We recognize that these projects are perceived by investors to be risky, so we spread the risk among several parties where necessary. In the structuring of the pooled municipal bonds, we used a multilayered financing approach to make the transaction more attractive for investors.

Credit Enhancements. To facilitate private sector participation in infrastructure financing, we use credit enhancements to reduce perceived investor risk. Our projects utilized the USAID Development Credit Authority (DCA), a credit guarantee program, to reduce project risk. As advisers to the DCA program, we had a unique understanding of the program and its potential for municipal finance.