USAID DCA Support for Housing and Infrastructure

Project Summary

In July 2005, President Bush announced a new mortgage and infrastructure initiative for Africa during the G-8 Summit in London. The program was established to support private sector investment in these sectors throughout sub-Saharan Africa. In 2006, USAID was tasked with responsibility for implementing the initiative and the vehicle to support these investments was through the Development Credit Authority (DCA) which provides partial credit guaranties to private sector investors. DCA partial credit guaranties can extend up to 20 years and the program can support a variety of housing and infrastructure investments including water, sanitation, electricity, roads, hospitals, community facilities, mortgage-based and micro-finance housing credit, and rental, owner-occupied and lease-to-own housing transactions.

In order to assist with structuring the housing and infrastructure investment transactions in Africa, TCGI was contracted to provide technical assistance to facilitate the development and implementation of DCA guaranties. TCGI provides:

  1. Assistance at all levels of the structuring potential transactions in support of the investments housing and infrastructure. Advice will be provided in areas such as warehousing, tenor, securitization, mezzanine, junior or senior debt, general obligation bonds, revenue bonds, and credit enhancements.
  2. Assistance to appraise credit worthiness of borrowers and credit assessment capabilities of potential investors that USAID would work with.
  3. Assistance through credit rating agencies to quantify investors\' risk.
  4. Assistance with selected legal issues around housing and infrastructure investments.
  5. Assistance with work outs or restructuring of transactions which are not being implemented according to their original design.
  6. Assistance with implementing the monitoring plans associated with ongoing or planned DCA supported transactions.
  7. Assistance in structuring and negotiating co-guaranties with other donors and/or investors.
  8. Assistance with economic analysis related to the Africa Housing and Infrastructure Facility.