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Ustda presentation

  1. 1. USTDA – Overview Ryan BlumenowTrade Specialist (Johannesburg)
  2. 2. Overview of USTDAAdvance economic development and U.S. commercial interests indeveloping and middle-income countriesSupport modern infrastructure and a fair and open tradingenvironmentUSTDA has a dual mission:Foreign Assistance Agency Grant-making agency Development-oriented Responsive to priorities in host country or regionTrade Promotion Agency Supports US commercial interests
  3. 3. USTDA’s Program ActivitiesUSTDA’s foreign assistance provides private sector solutions todevelopment challenges through funding for:Investment Analysis / Feasibility StudiesSector Development / Technical AssistanceReverse Trade MissionsConferences / WorkshopsOur aim is to enable investments in infrastructure, technologytransfer/productivity enhancements, human capacitybuilding, and market-oriented reformHow? Through exposure to US technologies, product/equipmentsuppliers, standards, and best practices
  4. 4. National Export Initiative GOAL: Double U.S. exports over the next five years•USTDA named to export promotion cabinet•Close coordination with U.S. Department of Commerceon export advocacy•Commitment by USTDA to increase number of reversetrade missions – highly successful activity•Support for trade-promotion activities and inter-agencycooperation (visibility of projects)•Commitment to the facilitation of eased trade
  5. 5. Where to go from here?•Engage in projects utilizing USTDA assistanceEarly investment analysis/feasibility studies USTDA-funded investment analysis provides access to world- class U.S. contractors to tackle development challenges Evaluation of infrastructure development projects to support internal decision making (including analysis for potential investors and lenders)Technical assistance Development of sector strategies, industry standards, and legal and regulatory regimes Adoption of market-opening policies and procedures that promote a favorable business and trade environment•Reverse trade missions, training grants
  6. 6. USTDA Project EvaluationHow does USTDA evaluate projects?1. Developmental priority to host country/project sponsor(foreign assistance agency looking to be responsive to hostcountry’s needs)2. Likelihood of receiving implementation funding, as wellas US government/private sector involvement andpromotion3. Opportunity for significant US export potential (projectsponsor not tied into US procurements – merely thecontractors performing the analysis/evaluation.However, US suppliers should be able to compete in a fairand open trading environment through internationaltenders)
  7. 7. How does Sub-Saharan Africa Figure? •Sub-Saharan Africa receives about 20% of USTDA’s funding worldwide •Approximately $8-9 million per year in grant funding for the region •USTDA funds about 25 assistance projects and studies each year in the region •The average grant is about $400,000 •USTDA has funded projects in 37 countries throughout the region
  8. 8. Success Stories1. Coal-Bed Methane in Botswana• USTDA provided partial funding for a feasibility studyto the Botswana Development Corporation (BDC)• The project is intended to capture and process CBMfrom coalfields in Botswana to meet growing domestic andregional demand for a low-cost, clean, and efficient fuel forpower plants and feedstock for industrial processes• Also to advise on management of water reserves(byproduct of production)• USTDA also funded a RTM, which served as a form oftechnical assistance to help identify technologies andinvestment possibilities from abroad
  9. 9. Success Stories2. Mamabula Power Plant• USTDA provided funding for a technical assessment tothe Botswana Power Corporation (BPC) (as a follow on totwo earlier feasibility studies of different sized powerplants)• The projects are intended to help advise on thedevelopment of a more efficient power plant, to reduce useof coal and to assess the Mamabula coal fields• Also intended to provide financing analysis andassistance, and to address regional trading issues andbottlenecks to enable regional power trade
  10. 10. Success Stories3. Regulation of IPPs and electricity InvestmentMarket Framework• USTDA provided funding for technical assistance to Namibia’s ElectricityControl Board (ECB)• TA developed a formalized electricity market model to facilitate investment by theprivate sector• Also advised on tariff structures and renewable energy integration• Training component, support from OPIC and Ex-Im• Contractor also worked on TA for eThekwini Electricity – complementary adviceto ensure holistic view of market across the continent• New Namibian Electricity Act, several conditional licenses, at least 17 IPP projects (including RE such as wind, IGCC, CCGT, geothermal, solar, cogen), MOU with Nampower on IPP process• Recent funding of second phase for TA to support commercially viable IPP projects• Pilot and flagship model on the continent
  11. 11. Success Stories4. Van Eck Rhabilitation• USTDA funded a technical assessment for Nampower• Goal to improve efficiency in coal use, by upgradingtechnological components of a baseload power station• Technological improvements should allow increases in processing capability to meet increased demand• Regional power security of supply allows integration ofrenewable energy• Plan for rehabilitation will lead to the use of modern, cleanenergy technologies that will reduce emissions of greenhousegases and other harmful pollutants
  12. 12. Success Stories5. eThewkini Smart Metering• USTDA funded a technical assessment for eThekwiniElectricity• TA advises on economic, financial, and operating aspects of theuse of smart metering, time of use tariffs, and IPP framework tomeet NERSA requirements• Project is a flagship in Southern Africa to provide thetechnological foundation for improved demand-side managementpolicies and regulations as well as energy efficiency• Grant is the second to be extended to eThekwiniElectricity, which, in 2007, used USTDA funding to develop astrategic plan for the implementation of an integratedinformation technology system to speed up response times tonetwork and system problems
  13. 13. Engagement in SA (1)Over the past year, USTDA has hosted delegates from South Africa onfive different reverse trade missions.These missions focused on sectors that are strategic priorities toSA, including liquefied natural gas, agriculture, housing, energyefficiency, and CSP.USTDA is developing grants to support Eskom’s waste to energyplans, and to offer generalized support to the development of solarpower.USTDA provided a training grant offer to Transnet for a managementand operations training program that will support the development ofcritical human resources in support of their capital investmentprogram.
  14. 14. Engagement in SA (2)Recently approved USTDA activities related to SouthAfrica include a smart grid workshop and RTM, as wellas a Southern Africa regional rail integrationworkshop, and we are evaluating funding opportunities inaviation and water after recent Definitional Missions.USTDA is proactively seeking opportunities to continue topromote projects that have mutual economic benefits forSouth Africa and the United States.
  15. 15. How to Utilize USTDANo formal application procedureRequests can be made year-round by project sponsor in SSA or aninterested US companySupportive of private and public sector initiativesEngage with USTDA about grant and RTM ideasGrant Procedure: 1.Approach USTDA with project ideas 2.USTDA commissions U.S. technical consultant to review idea (Desk Study or Definitional Mission) 3.USTDA provides grant to host country project sponsor 4.Opportunity is either competed through U.S. federal procurement website or is a sole-sourced, cost-shared activity 5.Project sponsor contracts with U.S. firm, and project sponsor manages the contractor under USTDA funding 6.Project milestones trigger USTDA payment to U.S. firm 7.Report provided to project sponsor
  16. 16. USTDA Contact Information Website: Ryan Blumenow Telephone +27 (11) 290-3071 Email: