# Presentation: 870864

## Inter-American Development Bank:Overview Third Annual Banking on Development ConferenceNew OrleansMarch 16, 2006H. STEPHEN HALLOWAYSENIOR ADVISOR, EXTERNAL RELATIONS

## OVERVIEW

- Founded in 1959, oldest and largest of the regional
- 	multilateral development banks
- Largest source of development finance for Latin America
- 47 Member countries
- 		- 26 Borrowing
- 		- 21 Non-borrowing (Republic of Korea, 2004)
- 1961-2005: approved $137 billion** **in loans
- Total cost of projects: $325 billion
- 2005 lending $7.1 billion,
- 	technical assitance grants $164 million
- Paid-in vs. Callable capital; bonds to raise money

## THE IDB FAMILY

- _IDB_ provides 90% of its loans to the public sector with sovereign guarantee; investment, policy-based and emergency loans
- 	http://www.iadb.org/
- Also lends directly to the private sector through the
- 	_Private Sector Department_ (up to 10% of loans outstanding), primarily for infrastructure and capital markets projects
- 	http://www.iadb.org/pri/
- _Inter-American Investment Corporation_: SME loans <$10 million
- _Multilateral Investment Fund (MIF)_ provides grants for microfinance, training, business regulation and deregulation; loans; and equity funds.  Remittances. http://www.iadb.org/mif/

## 
Poverty Reduction & Social Equity
Sustainable Development & Growth

- Poverty Reduction & Social Equity
- Sustainable Development & Growth

- HISTORICAL PRIORITIES

## 
Competitiveness
Support for the Private Sector
Social Sector Reform
Integration

- Competitiveness
- Support for the Private Sector
- Social Sector Reform
- Integration

- KEY AREAS

## CAPITAL SHARE & VOTING POWER

- Capital Shares and Voting Power

**5%**

**30%**

**4**

**11%**

**50% **

## ORGANIZATIONAL CHART

## REGIONAL OPERATIONAL DEPTs

**Finance and**

**Basic**

**Infrastructure Div.**

**Env. & Natural**

**Res. Manag.**

**Division**

**Social Program**

**Division**

**State & Civil**

**Social**

**Progr. Division**

**Country Division**

**Country Office**

**Regional Departments**

**(3)**

## SECTORS OF ACTIVITY

_**Productive**_
*Agriculture*
*Industry*

_**Finance & Basic Infrastructure Sectors**_
*Energy*
*Transportation*
*Telecommunications*

_**Social **_
*Education*
*Health*
*Urban Development*
*Environment*
*Water & Sanitation*

_**Reform**_
*Modernization of state and decentralization*

## 2007-2008 PIPELINE: Project Distribution

## PROJECT CYCLE

**Programming**

**Identification**

**Preparation**

**Analysis**** **

**Negotiation **
**and**
** ****Approval**

**Execution **
**and **
**Supervision**

**Borrower**
**& Bank**

**Bank**

**1-2 Years**

**4-8 Years**

**PROJECT**
**OUTLINE**

**PROCUREMENT**
**PLAN**

**Project Report**

**Project Concept**** ****Document**

**Borrower**
**& Bank**

**Borrower**
**& Bank**

**Borrower**
**& Bank**

**Borrower**
**& Bank**

**Notes:**
PROGRAMMING MISSION
The cycle begins with a programming mission from the Bank to borrowing countries to review their priority development programs. e.g. Power Plant

IDENTIFICATION MISSION
The specialists of the energy sector visit the country and the potential executing agency.  There is an identification of the basic characteristics of the loan.  For the first time the Bank publishes the Project Outline on the internet.  There may be needs for consultancy works at this stage.

PREPARATION MISSION
The project team begins to asses feasibility of the project from different point of view: technical, financial, economic and environmental. They usually hire external consultants to conduct those assessments and studies.  Then, the project team prepares a Project Concept Document to submit to the Loan Committee.  

## Public Sector Projects
	Preparation of Projects: 
	* Contact Bank staff / team leader for feasibility studies and project preparation
	Implementation of Projects:
	* Contact Executing Agencies (Government  Ministries) for procurement requirements, bidding documents, contract information, procedures & payments

Private Sector Projects
	* Contact PRI, IIC and MIF for due diligence contracts

- 	**Preparation of Projects:**
- 	* Contact Bank staff / team leader for feasibility studies and project preparation
**	****Implementation of Projects:**
- 	* Contact Executing Agencies (Government  Ministries) for procurement requirements, bidding documents, contract information, procedures & payments
- _Private Sector Projects_
- 	* Contact PRI, IIC and MIF for due diligence contracts

- Business Opportunities

## IDB
Procurement contracts with IDB as client, mainly in  consulting services, in support of project preparation (smaller value; short term; usually ‘sole source’ or short-list, typically preparatory phase – feasibility studies, due diligence)					~  5%

In-country
Competitively-bid procurement contracts with IDB borrowing country government as client (larger value, longer term, formal competitive bids, typically implementation phase – goods, civil works, equipment contracts) 	~ 95%

Subcontracts with other firms (as partner, as a team member, as a supplier).				

- Procurement contracts with IDB as client, mainly in  consulting services, in support of project preparation (*smaller value; short term; usually ‘sole source*’ *or short-list, typically preparatory phase – feasibility studies, due diligence)**	**	**	**	**	*~  5%
- _In-country_
- Competitively-bid procurement contracts with IDB borrowing country government as client (*larger value, longer term, formal competitive bids, typically implementation phase – goods, civil works, equipment contracts*) 	~ 95%
- Subcontracts with other firms (*as partner, as a team member, as a supplier*).

- Business Opportunities

## WINNING CONTRACTS  Prepare well 

- Make thorough assessment of competitive advantage to 	determine priority / niche markets in region
- Review Country Strategies & Policy Documents
- Frequent and careful review of most promising projects:
- _Sign up for RSS_ on IDB Procurement Portal
- Check IDB Web-site for new projects  Press Releases
- Subscription to UN Development Business
- Local newspapers (for National Competitive Bidding)
- Emphasize in-country/regional experience
- Invest in language capability: essential tool, proof of commitment

**Notes:**
in-country experience: including with CIDA, IDB, WB and explain how your expertise is distinct, relevant, state of the art and proven in the field

## WINNING CONTRACTS

- Personal contact: _make and maintain_
- Meet with investment officers / country coordinators for project info and feasibility studies
- Visit IDB Country Office
- Meet with country government officials
- Meet with Embassy commercial staff
- Make alliances with local partners
- partnership on international bids
- local knowledge
- legal assistance, language skills etc
- Know (or join!) your competition
- Word of Mouth: news travel fast

## IDB Homepage: www.iadb.org
General
Basic Facts: www.iadb.org/info/
Annual Report: www.iadb.org/aboutus/I/hi_ar.cfm?language=English
Sectors and Topics: www.iadb.org/exr/topics/index.htm

Projects
Project Information & Procurement notices : http://condc05.iadb.org/idbppi/asp/mainpage.asp
Project Documents and Public Information Center : http://www.iadb.org/exr/pic/?language=english

Events
IDB Business Seminars: http://www.iadb.org/biz/
IDB-sponsored events: www.iadb.org/NEWS/DISPLAY/events.cfm?Language=English

**General**
- Basic Facts: _[www.](http://www.iadb.org/info/)__[iadb](http://www.iadb.org/info/)__[.org/info/](http://www.iadb.org/info/)_
- Annual Report: _[www.](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)__[iadb](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)__[.org/](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)__[aboutus](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)__[/I/hi_](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)__[ar](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)__[.](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)__[cfm](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)__[?language=English](http://www.iadb.org/aboutus/I/hi_ar.cfm?language=English)_
- Sectors and Topics: _[www.](http://www.iadb.org/exr/topics/index.htm)__[iadb](http://www.iadb.org/exr/topics/index.htm)__[.org/](http://www.iadb.org/exr/topics/index.htm)__[exr](http://www.iadb.org/exr/topics/index.htm)__[/topics/index.](http://www.iadb.org/exr/topics/index.htm)__[htm](http://www.iadb.org/exr/topics/index.htm)_
**Projects**
- Project Information & Procurement notices : _[http://condc05.](http://condc05.iadb.org/idbppi/asp/mainpage.asp)__[iadb](http://condc05.iadb.org/idbppi/asp/mainpage.asp)__[.org/](http://condc05.iadb.org/idbppi/asp/mainpage.asp)__[idbppi](http://condc05.iadb.org/idbppi/asp/mainpage.asp)__[/asp/](http://condc05.iadb.org/idbppi/asp/mainpage.asp)__[mainpage](http://condc05.iadb.org/idbppi/asp/mainpage.asp)__[.asp](http://condc05.iadb.org/idbppi/asp/mainpage.asp)_
- Project Documents and Public Information Center : _[http](http://condc05.iadb.org/idbppi/asp/mainpage.asp)__[://](http://www.iadb.org/exr/pic/?language=english)__[www.](http://www.iadb.org/exr/pic/?language=english)__[iadb](http://www.iadb.org/exr/pic/?language=english)__[.org/](http://www.iadb.org/exr/pic/?language=english)__[exr](http://www.iadb.org/exr/pic/?language=english)__[/](http://www.iadb.org/exr/pic/?language=english)__[pic](http://www.iadb.org/exr/pic/?language=english)__[/?language=](http://www.iadb.org/exr/pic/?language=english)__[english](http://www.iadb.org/exr/pic/?language=english)_
**Events**
- IDB Business Seminars: _[http://www.](http://www.iadb.org/biz/)__[iadb](http://www.iadb.org/biz/)__[.org/biz/](http://www.iadb.org/biz/)_
- IDB-sponsored events: _[www.](http://www.iadb.org/NEWS/DISPLAY/events.cfm?Language=English)__[iadb](http://www.iadb.org/NEWS/DISPLAY/events.cfm?Language=English)__[.org/NEWS/DISPLAY/events.](http://www.iadb.org/NEWS/DISPLAY/events.cfm?Language=English)__[cfm](http://www.iadb.org/NEWS/DISPLAY/events.cfm?Language=English)__[?Language=English](http://www.iadb.org/NEWS/DISPLAY/events.cfm?Language=English)_

- Sources of Information from your computer

## OTHER SOURCES OF BIZ OPS

- On borrowing country’s procurement sites –
- -eg Mexico CompraNet: http://www.compranet.gob.mx/
- -Guatemala GuateCompra: http://www.guatecompras.gt/info/comoSeUsaGuatecompras.aspx
- -Brazil (national): ComprasNet http://www.comprasnet.gov.br/
- -Sao Paulo: BEC http://www.bec.sp.gov.br/
- -Chile: ChileCompra http://www.chilecompra.cl/

## External Relations/Public Information

Stephen Halloway   202-623-1728; stephenh@iadb.org
Isabel Hagbrink	202-623-1546; isabelh@iadb.org
Hiroko Miyakawa	202-623-2652; hirokom@iadb.org

General Inquiries: 		BUSINESS@IADB.ORG

- Stephen Halloway   202-623-1728; _stephenh@iadb.org_
- Isabel Hagbrink	202-623-1546; isabelh@iadb.org
- Hiroko Miyakawa	202-623-2652; _hirokom@iadb.org_
- General Inquiries: 		BUSINESS@IADB.ORG

- GENERAL ASSISTANCE