H.R. 6562: United States Development Finance Corporation Effectiveness Act

This bill, known as the United States Development Finance Corporation Effectiveness Act, seeks to enhance the operational effectiveness of the United States Development Finance Corporation (DFC) by amending the Better Utilization of Investments Leading to Development Act of 2018. Here are the key components of what the bill proposes:

Annual Report Amendments

The bill updates the requirements for the annual report that the DFC must produce. The amendments aim to provide more comprehensive insights regarding:

• The DFC’s contributions to U.S. strategic, foreign policy, and development goals derived from projects it supports.
• A detailed assessment of the DFC's financial performance, encompassing aspects such as funds committed, disbursed, and the rates of default and recovery on investments.
• An analysis of the performance of equity investments year-over-year and a narrative explaining variations between projected and actual outcomes.

Project Impact Metrics

Changes are made regarding the metrics used to evaluate the effectiveness of DFC-supported projects, focusing on:

• The desired developmental impact and strategic outcomes of projects, alongside the Corporation's ability to meet these objectives.
• The extent of private sector resources mobilized compared to the amount of DFC support and any additional public sector backing.
• The anticipated and actual mobilization of private capital by projects and the performance of funding sources.
• A breakdown of support provided to varying economic classifications of countries (less developed, advancing income, and high-income), assessing trends over the last five fiscal years.
• Evaluating the Corporation's risk appetite for funding projects in less developed countries.

Public Information Accessibility

The bill also emphasizes the importance of transparency and public access to information regarding DFC-supported projects. It requires the DFC to:

• Maintain a publicly accessible, machine-readable database that provides detailed project-level information.
• Include project descriptions, performance metrics, and evaluations of the developmental impacts during and after project completion.

Strategic Recommendations

Lastly, the DFC is encouraged to provide recommendations for enhancing project outcomes in response to evolving circumstances. This establishes a proactive approach towards adapting projects to meet their intended goals better.

Relevant Companies

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