USTDA – Overview

Ryan BlumenowTrade Specialist (Johannesburg)

Overview of USTDA

Advance economic development and U.S. commercial interests in developing and middle-income countriesSupport modern infrastructure and a fair and open trading environmentUSTDA has a dual mission:Foreign Assistance Agency

Grant-making agency Development-oriented Responsive to priorities in host country or region

Trade Promotion Agency Supports US commercial interests

USTDA’s Program Activities

USTDA’s foreign assistance provides private sector solutions to development challenges through funding for:

Investment Analysis / Feasibility Studies Sector Development / Technical AssistanceReverse Trade MissionsConferences / Workshops

Our aim is to enable investments in infrastructure, technology transfer/productivity enhancements, human capacity building, and market-oriented reformHow? Through exposure to US technologies, product/equipment suppliers, standards, and best practices

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 Commerce on export advocacy•Commitment by USTDA to increase number of reverse trade missions – highly successful activity•Support for trade-promotion activities and inter-agency cooperation (visibility of projects)•Commitment to the facilitation of eased trade

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

USTDA Project Evaluation

How does USTDA evaluate projects?

1. Developmental priority to host country/project sponsor (foreign assistance agency looking to be responsive to host country’s needs)2. Likelihood of receiving implementation funding, as well as US government/private sector involvement and promotion3. Opportunity for significant US export potential (project sponsor not tied into US procurements – merely the contractors performing the analysis/evaluation. However, US suppliers should be able to compete in a fair and open trading environment through international tenders)

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

Success Stories

1. Coal-Bed Methane in Botswana

• USTDA provided partial funding for a feasibility study to the Botswana Development Corporation (BDC)• The project is intended to capture and process CBM from coalfields in Botswana to meet growing domestic and regional demand for a low-cost, clean, and efficient fuel for power 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 of technical assistance to help identify technologies and investment possibilities from abroad

Success Stories

2. Mamabula Power Plant

• USTDA provided funding for a technical assessment to the Botswana Power Corporation (BPC) (as a follow on to two earlier feasibility studies of different sized power plants)• The projects are intended to help advise on the development of a more efficient power plant, to reduce use of coal and to assess the Mamabula coal fields• Also intended to provide financing analysis and assistance, and to address regional trading issues and bottlenecks to enable regional power trade

Success Stories

3. Regulation of IPPs and electricity Investment Market Framework• USTDA provided funding for technical assistance to Namibia’s Electricity Control Board (ECB)• TA developed a formalized electricity market model to facilitate investment by the private 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 advice to 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

Success Stories

4. Van Eck Rhabilitation

• USTDA funded a technical assessment for Nampower• Goal to improve efficiency in coal use, by upgrading technological 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 of renewable energy• Plan for rehabilitation will lead to the use of modern, clean energy technologies that will reduce emissions of greenhouse gases and other harmful pollutants

Success Stories

5. eThewkini Smart Metering

• USTDA funded a technical assessment for eThekwini Electricity• TA advises on economic, financial, and operating aspects of the use of smart metering, time of use tariffs, and IPP framework to meet NERSA requirements• Project is a flagship in Southern Africa to provide the technological foundation for improved demand-side management policies and regulations as well as energy efficiency• Grant is the second to be extended to eThekwini Electricity, which, in 2007, used USTDA funding to develop a strategic plan for the implementation of an integrated information technology system to speed up response times to network and system problems

Engagement in SA (1)

Over the past year, USTDA has hosted delegates from South Africa on five different reverse trade missions.These missions focused on sectors that are strategic priorities to SA, including liquefied natural gas, agriculture, housing, energy efficiency, and CSP.USTDA is developing grants to support Eskom’s waste to energy plans, and to offer generalized support to the development of solar power.USTDA provided a training grant offer to Transnet for a management and operations training program that will support the development of critical human resources in support of their capital investment program.

Engagement in SA (2)

Recently approved USTDA activities related to South Africa include a smart grid workshop and RTM, as well as a Southern Africa regional rail integration workshop, and we are evaluating funding opportunities in aviation and water after recent Definitional Missions.USTDA is proactively seeking opportunities to continue to promote projects that have mutual economic benefits for South Africa and the United States.

How to Utilize USTDA

No formal application procedureRequests can be made year-round by project sponsor in SSA or an interested US companySupportive of private and public sector initiativesEngage with USTDA about grant and RTM ideasGrant Procedure:

1. Approach USTDA with project ideas2. USTDA commissions U.S. technical consultant to review idea

(Desk Study or Definitional Mission)3. USTDA provides grant to host country project sponsor4. Opportunity is either competed through U.S. federal

procurement website or is a sole-sourced, cost-shared activity5. Project sponsor contracts with U.S. firm, and project sponsor

manages the contractor under USTDA funding6. Project milestones trigger USTDA payment to U.S. firm7. Report provided to project sponsor

USTDA Contact Information

Website: www.ustda.gov

Ryan BlumenowTelephone +27 (11) 290-3071

Email: rblumenow@ustda.gov