The Better Utilization of Investments Leading to Development (BUILD) Act of 2018 (S.2463/H.R.5105) combines the Overseas Private Investment Corporation (OPIC) with parts of the US Agency for International Development (USAID) and has a budget of $60 billion, more than double OPIC’s $29 billion authority. It will also be allowed to provide direct equity for projects overseas, which OPIC could not do.
In October 2018, Congress passed and the president signed a bill to create a new US International Development Finance Corporation (DFC) to provide financing, risk insurance, and equity support for large infrastructure and energy projects overseas.
The creation of the DFC provides a unique opportunity for USAID to scale up significantly its use of financing tools for development. USAID missions will be able to take advantage of an expanded toolbox of financing options beyond guarantees (including loans, political-risk insurance, and equity) and a broader range of private-sector expertise to support and reorient ongoing programs toward enterprise-led development.
A recent article in Devex further discusses the government coordination report to Congress regarding how USAID will work with DFC.