IMPORTANT – PLEASE NOTE:
The U.S. Trade and Development Agency (USTDA) helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot projects, and reverse trade missions while creating sustainable infrastructure and economic growth in partner countries. The objective of USTDA assistance is to build partnerships between U.S. firms and overseas project sponsors in order to bring proven private sector solutions to developmental challenges in emerging markets.
When an overseas project sponsor has already identified and partnered with a U.S. firm that it wishes to perform an activity eligible for USTDA support the Agency may be able to provide funding in the form of a sole-source grant. USTDA sole-source grants are available for feasibility studies, technical assistance, and pilot projects in priority infrastructure sectors such as transportation, energy, and telecommunications. U.S. firms that are selected by overseas project sponsors to perform work under sole-source USTDA grants are expected to share the cost of the work with USTDA and also typically participate in a success fee program.
Please note that USTDA does not provide funding for project implementation financing, marketing activities, or export sales.
U.S. Firm: The U.S. firm that is selected by an overseas project sponsor to perform the USTDA-funded work. To be eligible to perform USTDA-funded work, U.S. firms must meet USTDA's Nationality Requirements.
Overseas Project Sponsor: The foreign entity, public or private, responsible for developing an infrastructure-related project in the developing or middle-income country. Typically, the overseas project sponsor is responsible for securing or providing project implementation financing and for making procurement decisions during that implementation. If applicable, the overseas project sponsor would typically also have the property or concession rights to develop the project.
Please note that both the U.S. firm and the overseas project sponsor must successfully complete USTDA's due diligence review, and one of the following due diligence forms: U.S. Firm Form | Private Sector Grantee Form | Parastatal Grantee Form.
U.S. firms interested in partnering with an overseas project sponsor on a sole-source USTDA project are expected to share the cost of the work with the Agency and also typically participate in a success fee program.
Cost-Sharing demonstrates the U.S. firm's commitment to the work and interest in project implementation following the completion of the USTDA-funded activity. USTDA, furthermore, is required by law to seek contributions from participating U.S. firms to the maximum extent practicable. The level of the U.S. firm's cost share contribution varies based on several factors, including the amount of funding requested from USTDA and the potential commercial benefits to the U.S. firm following the work. Please note that no fee or profit is allowed as part of the USTDA-funded activity.
Success Fees are intended to recoup USTDA's grant funding in instances where the U.S. firm commercially benefits from the USTDA-funded activity. Potential commercial benefits include project investment, return on financing, and revenue generation from the sale of goods and services. The requirement to pay the success fee is triggered if the U.S. company receives commercial benefits related to project implementation.
A "Success Fee and Cost Share Agreement" is an agreement that sets forth the cost share contribution from the U.S. firm and the success fee arrangement. The Success Fee and Cost Share Agreement is signed by USTDA and the U.S. company, and must be signed before the Grant Agreement is finalized. Please review our model Success Fee and Cost Share Agreement for your reference.
A "Grant Agreement" is the primary agreement for the USTDA-funded activity and contains the Terms of Reference and the USTDA Mandatory Contract Clauses. The Grant Agreement is signed by USTDA and the overseas project sponsor. Please review our model Grant Agreement for your reference.
A "Contract" is the secondary agreement for USTDA-funded activity and contains the identical Terms of Reference and USTDA Mandatory Contract Clauses from the Grant Agreement, as well as the payment milestones and other provisions. The Contract is signed by the overseas project sponsor and the U.S. firm, and USTDA must review and approve the Contract before the USTDA-funded work can proceed. Please review our model Contract for your reference.
The U.S. company submits invoices to the overseas project sponsor for approval in accordance with the payment milestones established in the Contract. After the invoice is approved by the overseas project sponsor, it is submitted to USTDA, and USTDA disburses the grant funds to the U.S. firm directly.
The following graphic outlines the relationship of the entities involved in a sole-source USTDA project, the key documents, and the invoicing process: