USAID
JASON GIRARD
JENE THOMAS
ELIZABETH BAUCH
USAID
GLOBAL DEVELOPMENT
ALLIANCE:
MODEL FOR MUNICIPAL
DEVELOPMENT THROUGH
INFRASTRUCTURE FINANCING
EVENSEN DODGE
INTERNATIONAL
FERNANDO GAMA
SENIOR VICEPRESIDENT
EVENSEN DODGE
MINNEAPOLIS, MN. USA.
TEL. 952 210-9795
FAX. 952 471-1196
fgama@evensendodge.com
PARIS, FRANCE. DECEMBER 2003
INTRODUCTION …
• EVENSEN DODGE, FOUNDED
IN 1922, WAS THE FIRST
PUBLIC-FINANCE ADVISORY
FIRM IN THE UNITED STATES.
• HAS PARTICIPATED IN
DEVELOPING THE
SUBNATIONAL FINANCING
MODEL IN THE U.S.
• ASSISTS MORE THAN 400
SUBNATIONAL ENTITIES TO
ACCESS BILLONS OF
DOLLARS ANNUALLY
• IS WORKING
INTERNATIONALLY WITH
USAID
A SUBNATIONAL FINANCING MODEL
FINANCIAL ADVISOR
COORDINATES FINANCING PROJECT
INVESTORS
STATES,
MUNICIPALITIES
ISSUE DEBT
`
& INSTITUTES
REVENUE
FLOWS
TAXES
LEGAL
FRAMEWORK
CREDIT
ENHANCEMENT
RATING
AGENCIES
FINANCIAL
STRUCTUR
E
PARAMASTER TRUST
METERS
FINANCING
PRIVATE
PLACEM
ENT
COMPETITIVE
PLACEMENT
NEGOTIATED
PLACEMENT
PENSION
FUNDS
INSURANCE
COMPANIES
PRIVATE
FUNDS
DIAGNOSIS OF MEXICAN DEBT ISSUANCE MODEL (2000) …
FINANCIAL ADVISOR
INVESTORS
STATES,
MUNICIPALITIE
S&
INSTITUTES
REVENUE
FLOWS
LOCAL
TAXES
LEGAL
FRAMEWORK
FINANCIAL
PLAN
FEDERAL
TAXES
TRUSTS
DEBT
ISSUANCE
OVER A
PROJECT
UNDERWRITER
S
CREDIT
ENHANCEMENT
RATING
AGENCIES
FINANCING
PENSION
FUNDS
FINANCIA
L
INSTRUM
ENTS:
LONG
TERM
TAX
INCENTIV
ES
INSURANCE
COMPANIES
PRIVATE
FUNDS
PHASES ….
PHASES TO CONSOLIDATE A NEW
SUBNATIONAL FINANCING MARKET
IN A GIVEN COUNTRY
1
PREDIAGNOSIS
DIAGNOSIS
ENABLE INVESTORS
2
PENSIONS FUNDS
PRIVATE FUNDS
LEGAL FRAMEWORK
GLOBAL DEVELOPMENT ALLIANCE:
USAID AND EVENSEN DODGE
ENABLE
THE
ISSUERS
HABILITAR
A LOS
EMISORES
3
4
TECHNICAL
ASISITENCIAASSISTANCE
TÉCNICA
LEGAL
MARCOFRAMEWORK
LEGAL
PROJECT
PLANS
FINANZASFINANCING
POR PROYECTO
SECTOR VS MUNICIPAL MODELS
 REPLICATE THE MODELS
 MORE JURISDICTIONS
ACCESSING FINANCING
CONSOLIDATE THE MARKET
5
DEVELOP MORE LOCAL REVENUE
SOURCES
DEVELOP CREDIT
ENHANCEMENT INSTRUMENTS
OBJECTIVE
CREATE A MODEL FOR MUNICIPAL
DEVELOPMENT THROUGH
INFRASTRUCTURE FINANCING IN
INTERESTED COUNTRIES
PHASE 1:
FINANCIAL PLANNING & DESIGNING OF FINANCIAL STRUCTURE
•ANALYZE CLIENT FINANCIAL NEEDS,
•STUDY LEGAL FRAMEWORK,
•DESIGN ADEQUATE FINANCIAL
STRUCTURE
JURISDIC- MUNICI- MUNICIPRIVATE
TIONS
PALITY 1- PALITY 2… DEVELOPERS
FEES &
DUTIES
TAXES
REVENUE
FLOWS
QUANTITATIVE ANALYSIS
EXPLORE FINANCING
ALTERNAIVES
INTERCEPT TRUSTS
REVENUE
FLOWS
CREDIT RATING
FINANCIAL
STRUCTURE IN PLACE
STRESS
TESTS
PRENEGOTIATION
CREDIT
ENHANCEMENT
POOL FINANCING
STRUCTURE
• ONE STRUCTURE FOR
VARIOS
JURISDICTIONS
• SMALLER ISSUERS
MAY ACCESS
FINANCING
• COST AND RISK
REDUCED
REQUEST FINANCING
PHASE 1: (CONTINUES)
FINANCIAL PLANNING & DESIGNING OF FINANCIAL STRUCTURE
POOL FINANCING
STRUCTURE
REQUEST FINANCING
IRREVOCLABE TRUST
TO
PAY DEBT OBLIGATION
PROJECT
TRUSTEE
PRIVATE
DEVELOPER
ADMINISTRATION
TRUST
JURISDICTION
PAYSPAY
PROJECT
PROCEEDS
FOR DEBT
DEBT OBLIGATION
OBLIGATION
FOR
FINANCING
BUILDS, OPERATES AND TRANSFRS
INVESTORS
PHASE 2: STATE REVOLVING FUND
STATE COMITEE OF
COMMITTEE
CONSTITUTION
PUBLIC DEBT
IRREVOCABLE
MANDATE TO IRREVOCABLE MANDATE TO
FED. GOV’T.
STATE LAW OF
PUBLIC DEBT
STATE
TREASURER
CONGRESS
AUTHORIZATIONS
FINANCING
OFFICIAL
OFFICIAL STATEMENTS
FOR BOND
STATEMENTS
IRREVOCABLE
INSTRUCTIONES TO TRUST
FEDERAL GOVERNMENT
ISSUANCE
OR
DEFINE CRITERIA TO PAYING
DEBT OBLIGATIONS
BANK CONTRACTS
TO AFFECT IRREVOCABLY
FEDERAL TAX TRANSFERS TO
JURISDICTION
TO DEVIATE A % OF FEDERAL
TAX TRANSFERS TO THE
JURIDICTION INTO AN
IRREVOLCABLE TRUST
INTERCEPTED
FLOWS
OTHER REVENUE
FLOWS
1
2
n
A
B
“N”
IRREVOCABLE TRUST
TO JURISDICTION
EVALUACIÓN
AUTOMATICA
DE EXEDENTES
JURISDICTION TREASURY
TRUST AGREEMENT
EXCESS REVENUE FLOWS GO BACK TO JURISDICTION
FUND TO PAY
DEBT 1
COUPON PAYMENTS
PAYING AGENT OR BANK 1
FUND TO PAY
DEBT 1
PAYING AGENT OR BANK 2
FUND TO PAY
DEBT ”n”
PAYING AGENT OR BANK “n”
DIAGRAMA DE REVOLVENCIA FINANCIERA
ADMINISTRACIÓN DEL
FINANCIAMIENTO
RECIBIDO
DESARROLLO DE
PROYECTOS
PAGO DE
OBLIGACIONES
COMITÉ TÉCNICO DEL FIDEICOMISO DE ADMINISTRACIÓN DE OBRA Y DE
SUPERVISIÓN DE AVANCE DE PROYECTOS
POR CADA NUEVO
FINANCIAMIENTO HABRÁ UNA
NUEVA INSTRUCCIÓN
IRREVOCABLE AL FIDUCIARIO
DETALLANDO COMO PAGAR AL
CONCESIONARIO DE CADA PROYECTO
FIDEICOMISO DE
ADMINISTRACIÓN DE OBRA
FINANCIAMIENTO
1
FINANCIAMIENTO
FONDO
DESARROLLO
PROYECTO 1
FONDO
DESARROLLO
PROYECTO n
n
FINANCIAMIENTO
NUEVO
A
FONDO
DESARROLLO
PROYECTO A
MAS
FINANCIAMIENTOS
n
EL COMITÉ:
SUPERVISARÁ EL AVANCE DE
OBRA DE CADA PROYECO Y
OTORGARÁ AUTORIZACIÓN AL
FIDUCIARIO PARA REALIZAR
PAGOS DE AVANCE DE OBRA AL
FRANQUICITARIO DE CADA
PROYECTO
Y CONTRA
ENTREGA DE
FACTURA
FIDEICOMISO DE
ADMINISTRACIÓN,
INVERSIÓN Y PAGO
FONDO PAGO
CREDITO 1
MAS
FLUJOS
AUTORIZACIÓN
DE PAGO
PAGOS
PREVIA
AUTORIZACIÓN
1
FUJJOS
ORIGINALES
PROVENIENTE
S DE SHCP
FONDO PAGO
CREDITO 2
CONCESIONARIO
PROYECTO 1
CONCESIONARIO
PROYECTO n
CONCESIONARIO
PROYECTO A
MAS
PROYECTOS
FLUJOS DE LOS
PROYECTOS SON
INTERCEPTADOS
UN PORCENTAJE ES
PARA CONTRATAR
NUEVOS CRÉDITOS
UN PORCENTAJE SE
DEVUELVE PARA
MANTENIMIENTO,
OPERACIÓN Y
UTILIDAD DEL
FRANQUICIATARIO
FONDO PAGO
CREDITO A
FONDO PAGO
CREDITO B
MAS
CREDITOS
EXEDENTES PASAN A LA TESORERÍA
A
C
R
E
E
D
O
R
E
S
A
C
R
E
E
D
O
R
E
S
PHASE 3: ACCESS FINANCING
INFRASTRUCTURE PROJECT
BOND COUNSEL
PRESALE
ANALYSIS
FINANCIAL
STRUCTURE
FINANCIAL ADVISOR
OFICIAL
STATEMENTS
COORDINATES PROJECT
BOND SALE
CREDIT
RATINGS
CREDIT
ENHACEMENTS
UNDERWRITERS
POST SALE
ANALYSIS
REQUEST FINANCING
TRUST
FINANCING
INVESTORS
THANK YOU …
USAID & EVENSEN DODGE
ASSITNG
JURISDICTIONS ACCESS FINANCING
JASON GIRARD
Community Planner
USAID Urban Programs Team
Washington, DC
Tel: 202-712-0254
Fax: 202-216-3174
Email: jgirard@usaid.gov
FERNANDO GAMA
SENIOR VICE-PRESIDENT
MINNEAPOLIS, MN.
TEL. 952-2109795. FAX. 952-471-1196
Email: fgama@evensendodge.com