How USTDA Works

USTDA funds project planning activities that directly influence the procurement decisions related to major industrial or infrastructure projects in developing and middle-income countries - projects that typically represent millions of dollars in U.S. export potential. From radar for airports in Asia to process controls for refineries in Latin America, hundreds of goods and services are required to implement a project. USTDA works to ensure that the products and services used in the implementation of projects are of U.S. origin.

All USTDA activities are carried out by U.S. firms. The following is a brief summary of the activities that USTDA funds:

DEFINITIONAL MISSIONS & DESK STUDIES - Before USTDA provides specific grant assistance, it requires independent evaluation of the proposal. Teams of technical specialists, all of whom are small U.S. businesses, are hired by USTDA to gather additional information on a project and complete these reports. Desk studies complete quick analysis and are conducted in the United States. By contrast, definitional missions provide a more detailed evaluation and involve traveling to the host country in question.

TECHNICAL ASSISTANCE - USTDA funds technical assistance to project sponsors related to the evaluation or implementation of projects. In some instances, USTDA also offers funding to foreign governments for technical assistance that supports capacity building initiatives and the implementation of trade agreements that may lead to increased U.S. exports.

FEASIBILITY STUDIES - Feasibility studies evaluate the technical, financial, legal, and economic aspects of a development project in the pre-investment stage. Since this information is required to assess the credit worthiness of a project before it can proceed, USTDA feasibility studies provide American firms with the opportunity to get in on the "ground floor."

USTDA-funded feasibility studies also advise project sponsors of specific U.S. equipment and services. This information may lead to U.S. exports.

ORIENTATION VISITS - Orientation visits, sometimes referred to as reverse trade missions, offer U.S. suppliers an opportunity to showcase their products to foreign procurement officials. USTDA sponsors visit to the United States by foreign officials interested in purchasing American goods and services for specific projects.

CONFERENCE - USTDA conferences provide U.S. firms with face-to-face contact with key procurement officials and decision makers. These results driven events build business relationship by familiarizing project sponsors with U.S. goods and services, and informing U.S. companies about specific upcoming export opportunities.

ELIGIBLE COUNTRIES - USTDA is active in more than 100 nations around the world. At times, statutory, resource, and policy constraints limit the availability of USTDA programs in certain nations. Contact us directly to determine the status of USTDA assistance.

ENVIRONMENTAL IMPACT - USTDA reviews the environmental impact of each project. We will decline funding for projects raise environmental concerns that can not be addressed in an appropriate manner.

EFFECT ON U.S. JOBS - Our program is designed to create American jobs through increased exports as well as to support the economic development of the host nation. USTDA will not fund a project if it develops jobs overseas at the expense of jobs here at home.

WORKING WITH OTHER TRADE PROMOTION AGENCIES - USTDA learns of many viable public and private sector projects from the Commerce Department's U.S. and Foreign Commercial Service (US&FCS;) and the State Department's economic and commercial officers. We work closely with these agencies to identify projects and gauge the likelihood of their implementation. USTDA-funded feasibility studies often are used by the Overseas Private Investment Corporation (OPIC) and the Export-Import Bank of the United States (Ex-Im). Proposals often dovetail with OPIC and Ex-Im requirements.

RELATIONSHIPS WITH FINANCING INSTITUTIONS - USTDA maintains trust funds at four multilateral development banks (MDBs): the International Finance Corporation, the European Bank for Reconstruction and Development, the Inter-American Development Bank and its private sector arm, and the Inter-American Investment Corporation. These funds can be used for technical assistance or feasibility studies. Most are known as "Evergreen Funds." USTDA maintains a minimum balance that is available for funding project proposals by U.S. firms or to help U.S. businesses take advantage of time-sensitive projects. Since MDBs finance many of the capital projects in the developing world, USTDA's close relationship with these institutions, as well as the African Development Bank and the Asian Development Bank, is advantageous for the U.S. business community. In addition to the valuable project information that is gained through the MDBs (which USTDA passes on to American firms), working on bank projects ensures that a potential funding source has been identified.

COST SHARING & SUCCESS FEES - Costs associated with feasibility studies involving private sector projects are shared between USTDA and the U.S. firm developing the project. Cost sharing may also be requested on certain public sector projects. In private sector projects, co-production agreements, and other appropriate situations, USTDA has adopted a policy that requires reimbursement of the agency's investment in the project. This "success fee" is collected when the project is implemented and the U.S. firm involved in the study obtains a "significant economic benefit."