Volksbank BH d.d.
Loan Portfolio Guarantee
$25 million
This guarantee secures up to 50 percent of the principal of a $25 million loan portfolio from Volksbank BH to municipal governments. It will enable the bank to finance revenue-generating investments at the municipal level that promote economic and environmental development while strengthening the fiscal autonomy of the participating local governments. Illustrative examples of potential projects include: water (increased capacity, improved meterage, decreased system loss, etc.); wastewater (sewage pipes, treatment facilities, etc.); solid waste (consolidated waste disposal, equipment upgrades, etc.); and other infrastructure projects that support municipal development and where revenue can be segregated, i.e. parking structures.

Commercial International Bank
Loan Portfolio Guarantee
$40 million
The guarantee is designed to expand and improve water and wastewater service delivery to underserved areas of Egypt by facilitating utilities’ capacities to initiate private-sector provision of services. Through USAID's guarantee, funding of the Egyptian pound equivalent of approximately $40 million in loans is available to locally-based businesses for providing contracted water and wastewater services.

This project is expected to offer lower-cost septic tank evacuation services to 50,000 Egyptians living in outlying areas, currently without piped wastewater systems. It will also lower the cost and increase the accuracy of water meters, translating to lower water bills for 200,000 families and businesses. In addition, it will provide cheaper and more extensive pipe maintenance and better customer service for a service area of three million customers.

Partial funding for the project will be raised by the private placement of a total of Rs 1,000 million (Rupees= 100 crore) of non-convertible 15-year bonds. The bonds will be issued by a public trust established solely for the purpose of assisting these and other urban local bodies (ULBs) in gaining access to market borrowing for infrastructure development. Repayment of these funds will fall to the ULBs (municipalities). The DCA partial guarantee is used as a credit enhancement.

Tamil Nadu W.S.P.F.
Bond Guarantee
$6.4 million
To support the establishment of a fund for municipal insrastructure projects, a pooled financing mechanism has been set up to provide a cost-effective way for villages, towns and cities in the Indian state of Tamil Nadu to implement much-needed water and sanitation projects. Promoted under the Indo-USAID FIRE project, municipal bonds have been enthusiastically received by numerous municipal authorities in India. This bond guarantee supports the establishment of the “Water and Sanitation Pooled Fund” (WSPF), which will on-lend $6.4 million to multiple municipal water and sanitation projects. The funds raised by the bond issuance are disbursed as sub-loans to the participating municipalities for these projects.

One example is the township of Valasaravakkam, with a population of 26,260, which has no adequate water supply system, relying on open and bore wells and three above-ground tanks, connected to 11 miles of piping. This system provides an estimated 2 liters of water per person per day. This is one of a number of innovative DCA projects in India that have given access to financing for water and sanitation projects to benefit the urban and rural poor. It is the first to incorporate many of the aspects of the CWSRF program.

Dâr ad-Damâne (DAD)
Loan Portfolio Guarantee
$3 million
Local Government Units (LGUs) in Morocco are required to provide their own financing for projects undertaken at the local level. Currently, LGUs do not have access to private-sector financing. Preliminary studies indicate that the banking system currently funds only 7 percent of LGU needs in spite of current excesses in liquidity. Without access to financing, the LGU’s efforts to act decisively and effectively to improve inhabitants’ quality of life are seriously constrained. To address this issue, USAID’s Mission in Morocco is providing a partial re-guarantee of a portfolio of loans covered by Dâr ad-Damâne (DAD), a local private-sector guarantor owned by a consortium of mostly private banks. Loans eligible for re-guarantee involve private-sector financing from DAD’s banks to qualifying community-based service delivery projects.

Fonds d’Equipment Communal (FEC)
Loan Portfolio Guarantee
$4.696 million
If current trends continue, Morocco is projected to become a water deficit country by 2020. USAID is focused on improving water resource management by strengthening policy, regulatory, and institutional frameworks; promoting adoption of improved technologies; and broadening public participation for environmental improvements, including urban sanitation. The guarantee supports these objectives by expanding FEC’s capacity to finance eligible projects and by promoting investment from commercial banks into local development activities as well as improving access to financing for sanitation infrastructure projects by local governments. This loan portfolio guarantee is unique in that it allows FEC to transfer a portion of the guarantee to local private banks with a credit rating equal or better than FECs.