LGUGC has a co-guarantee agreement with the US Agency for International Development (USAID) which effectively expands LGUGC’s capacity to cover water projects, private water providers and bulk water supply of LGUs and Water Districts (WDs) in the Philippines. The USAID reinsurance of up to 50% of LGUGC’s enrolled portfolio is intended to strengthen LGUGC’s ability to mobilize private capital lending for water supply and sanitation facilities.
Usaid Technical Assistance
USAID support of LGUGC’s mission is evident through its provision of a number of technical assistance to LGUGC. In 2000, USAID’s technical assistance on the final review of the LGUGC LCSRS was conducted after the pilot testing of the first 6 LGUs. In 2001, USAID approved a technical assistance for the expansion of the LCSRS database from 120 to 500 LGUs. In 2002, support from legal specialists on policy issues pertinent to bond market development was given through the USAID-AGILE project. A consultant was also tasked to look at LGUGC’s capital adequacy with regard to leverage. In the following year, technical assistance was also given for portfolio risk management and determination of actuarially-sound leveraging ratio for LGUGC and the guarantee pricing model and Credit Rating for WDs.