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TDA (US Trade and Development Agency)


 

     


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The U.S. Trade and Development Agency assists in the creation of jobs for Americans by helping U.S. companies pursue overseas business opportunities. Through the funding of technical assistance, we enable American businesses to become involved in the planning stage of infrastructure and industrial projects in middle-income and developing countries. By doing this we provide American firms with market entry, exposure and information, thus helping them establish a position in markets that are otherwise difficult to penetrate.

 

Which projects does TDA support?
Because of its focused mission, TDA only considers projects that have potential to mature into significant business opportunities for U.S. companies. To be considered for funding, projects must;

  1. the project will have a positive developmental impact on the host country;

  2. financing for project implementation is available or likely to be available if the feasibility study confirms project viability;

  3. the potential for U.S. exports during project implementation is significant; and

  4. TDA has a facilitative role to play, such as overcoming subsidized foreign competition.

TDA learns of viable public and private sector projects from the U.S. business community and from other government agencies, such as the Commerce Department's U.S. and Foreign Commercial Service (US&FCS) and the State Department's economic officers. We also receive project information from the public and private sectors of foreign countries.

How do I obtain TDA funding for a project?
We recommend that you familiarize yourself with TDA's mission and funding criteria, and discuss your project with a TDA representative prior to preparing a written proposal. The TDA Website has a significant amount of information that will assist interested companies. Additional resource information on TDA past activities and current events can be obtained by contacting TDA's Information Resource Center at (703) 875-5578.

After becoming knowledgeable about TDA, you should call the appropriate Regional Director or Country Manager to informally discuss your proposal. Assuming there is a mutuality of interest, it would be helpful to then provide the TDA contact with a brief (2-3 page) outline of the proposal. If, after review of the informal outline, the regional staff encourages you to proceed, you should prepare a proposal using the model format for feasibility study proposals.

 

How long does it take to get a TDA grant?
It depends on the complexity of the project and quality of the supporting documentation. If the project has merit, TDA moves as quickly as posible to launch a Desk Study or Definitional Mission. These reports typically take several weeks to several months to complete. TDA reviews the report immediately upon its completion and a decision is rendered on whether to move forward.

 

TDA Operating Procedures:

Public Sector Projects
TDA invites African governments to apply for grant assistance for planning studies of major public sector projects for which there are plans to allocate substantial resources for foreign goods and services. Any country which is eligible for U.S. bilateral assistance may apply for TDA planning assistance.

Official requests for TDA assistance may be made directly to TDA in Washington by the appropriate local government agency or ministry or preferably through the in-country U.S. Embassy. All requests will ultimately require the endorsement of the U.S. Embassy. While a formal application form is no longer required, a letter of request from the sponsoring Ministry should be accompanied by basic background information on the project and on the requested study. This may include a description of the project, estimates of project and study cost, and, if known, anticipated study scope.

TDA normally conducts a preliminary internal review of the proposal to determine (1) that the project represents a development priority for the sponsoring country (2) that project financing has been identified and is likely if the study suggests project feasibility, (3) that the potential for U.S. exports during project implementation is significant and (4) that TDA has a facilitating role to play, without which the project would not move forward with U.S. exports.

In most cases, TDA sends a definitional mission of technical specialists to the country to investigate the project, work with local authorities to develop a scope of work for an appropriate feasibility study or consultancy, draw up a budget estimate and make a recommendation concerning TDA support of the study. If TDA determines that all funding criteria have been met, it may make an offer to the applicant government for support of the study. If the offer is accepted, TDA signs the grant agreement with the relevant host government agency or organization (the Grantee).

The Grantee (rather than TDA) selects the U.S. firm to conduct the study under approved competitive bidding procedures. Normally, this entails advertisement of the study or consultancy in the Commerce Business Daily, submission of qualifications to the Grantee, short-listing, submission of detailed proposals by short-listed firms, and selection of the top-rated firm, which then negotiates a contract with the Grantee. In some cases, the Grantee may opt for a one-step competition entailing submission of qualifications and proposal at the same time.

Although the grant agreement is signed by TDA and the Grantee, no funds are ever transferred to the Grantee. Instead, the U.S. contractor submits its invoices to the Grantee, which approves them and forwards them to the in-country U.S. Embassy for transmittal back to TDA in Washington. TDA then makes payment directly to the contractor.

 

TDA Operating Procedures:

Private Sector Projects
The review process is very similar for public and private sector projects. However, for private sector projects, TDA requires a cost-sharing commitment (i.e., TDA only partially covers the cost of the feasibility study, with the remainder of the cost being borne by the U.S. joint venture partner carrying out the study). TDA's contribution varies according to a number of factors, including, among other things, the size of the firm, the potential follow-on benefit to the firm as supplier to or investor in the project, the costs the firm has already incurred in developing the project, and the risks associated with the project. In addition, in appropriate cases, TDA may require the firm carrying out the study to reimburse part or all of the TDA funding if the project is implemented and the firm reaps a substantial economic

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Last updated, July, 2003