November 2023 Strengthening the Impact of the Development Finance Corporation

Strengthening the Impact of the Development Finance Corporation | 1 The number of people required to review and approve (formally or informally) the project and the number of those who are not finance or development finance experts substantially increases the inefficiency of the DFC’s deal review and approval p. [...] Through this lack of understanding, these other agency personnel sometimes (with the best of intentions) push the DFC to adopt policy or commercial positions that are not in the best interests of the project, the DFC, or the USG nor acceptable to the private sector. [...] With the transition from the OPIC to the DFC, the pandemic, and the significant growth of the DFC, the change in the personnel of the DFC and, in particular, the loss of experienced professional career staff has been notable—additional attrition appears likely. [...] The BUILD Act requires that “parties to the project…bear the risk of loss equal to at least 20 percent of the guaranteed support.” It does not limit the amount of the loan that the DFC can guaranty. [...] If requested by the borrower, the Board should require the DFC to rely on the IFC for all projects that involve the DFC and IFC.