# Presentation: 327578

## The Inter-American Development Bank (IDB) and Opportunities for BusinessAdvocacy Center/IDB - Brian McClearyMarch 30, 2006

## Presentation Outline

- Shared Goals for Hemisphere/Region
- IDB Group
- IDB Commercial Opportunities
- IDB Information Sources
- Advocacy Center/IDB Contact Information
- US Commercial Service SCOs

## Shared Goals for Hemisphere/Region

- US and IDB have common goals:  to spur growth and reduce poverty in region
- US support for Free Trade Agreements is critical part of trade promotion
- Exports are essential to economic output
- Infrastructure is necessary to facilitate trade
- As largest shareholder in IDB, US furthers Bank’s key role in promoting prosperity

## IDB Group

- Founded in 1959
- Over $100 billion in capital
- Largest source of development finance for Latin America and Caribbean
- 47 Member countries
- 		- 26 Borrowing
- 		- 21 Non-Borrowing
- Headquartered in Washington, D.C., with offices in all 26 borrowing countries

## Public sector projects
Private sector projects, via
Inter-American Investment Corporation 
Multilateral Investment Fund 
Private Sector Department
Since creation, IDB approved over $136 billion in loans
Total cost of projects: $307 billion
In 2005 IDB approved $7 billion in loans

- Private sector projects, via
- Inter-American Investment Corporation
- Multilateral Investment Fund
- Private Sector Department
- Since creation, IDB approved over $136 billion in loans
- Total cost of projects: $307 billion
- In 2005 IDB approved $7 billion in loans

**IDB Group **

## IDB’s lending portfolio:  infrastructure (42%), social investment (20%), public sector reform (17%), competitiveness (14%), and other (7%)

**IDB Group **

## IDB Group:  Capital Shares and Voting Power

**Latin America**
**and the Caribbean**

**Japan**
**&**
**Korea**

**5%**

**United States**

**30%**

**Canada**

**4****%**

**Non-Regional **
**Countries**

**11%**

**50% **

**Notes:**
The voting power of each member country of the Bank is based upon its subscription to the IDB’s ordinary capital..

26 Latin American and Caribbean Countries have 50.2 percent; the United States, 30.01 percent; Canada, 4 percent; the 16 European Countries, 10.81 percent; Israel 1.16% and Japan, 5 percent.

Japan is the largest subscriber among non regional member countries.

The IDB charter ensures the position of majority stockholder for the borrowing member countries as a group.

## IDB Group:  Sectors

**IDB Group:  Sectors**

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

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

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

_**Reform                           **_* Modernization of State Decentralization*

## IDB Commercial Opportunities

- Loans generate business
- 		15,000 contracts per year!
- Civil works, equipment, consultants
- IDB now uses more universal procurement policies
- International competitive bidding
- Firms from all member countries are eligible

## IDB Commercial Opportunities

- Two markets:
- Procurement contracts with country executing agencies (about 95%)
- Procurement contracts with IDB (about 5%)

## IDB Commercial Opportunities:  Project Pipeline (2006-2007)

**Energy & Industry**

**7%**

**Social Investment****, **

**Health &**** **

**Education**

**15%**

**Sanitation, Housing**

**& Urban Dev**** **

**15%**

**Modernization of the**** **

**State**

**22%**

**Agriculture & Rural Dev.**

**5%**

**Transportation&**** ****Communication**

**12%**

**Other**

**16%**

**  ****Env. & **
**Nat. Disasters**

**9%**

## IDB Commercial Opportunities:  Internal (2006-2007)

- Upcoming contracts to be bid over next 12-18 months:
- Facilities Management and Janitorial Services
- Various Interior Renovation/Construction Projects at Headquarters
- Office Supplies

## IDB Commercial Opportunities:  U.S. Business

- Among the IDB’s non-borrowing members, US is largest exporter and supplier
- Among all IDB members, US is ranked third, with 12.3% of IDB loan disbursements for purchase of goods and services
- From 2003-2005, 294 contracts valued at $34 million were awarded to US firms for consulting services; 56 contracts valued at $18 million were awarded to US firms for goods and works

## IDB Information Sources:IDB Web Site:  http://www.iadb.org

**Notes:**
This is the home page.  The front page article is about a ceremony the Bank held to commemorate the Korea’s membership to the Bank. 

Let me highlight a few important links.

## IDB Information Sources: Procurement

**Notes:**
If you are interested in procurement opportunities in the Bank, this link is very important for you.  

This is where you can obtain information on approved projects, projects in the pipeline, procurement notices, contract award information, procurement policies and procedures and other information concerning the procurement operation.

We are planning a procurement mission to  Seoul, Korea this year.  If you are interested in attending the workshop conducted by our public information officer and the chief of the procurement office, pls. let us know, we would like to send you the information.

## Advocacy Center/IDB Contact Information

- Brian McCleary, Senior Commercial Officer (202) 623-1179; BMcCleary@iadb.org
- Barbara White, Deputy
-     (202) 623-3822; BarbaraW@iadb.org
- Patrice Williams, Business Advisor
-     (202) 623-3821; PatriceW@iadb.org

## US Commercial Service SCOs:  Context

- Senior Commercial Officers, or SCOs, members of US Commercial Service (1980), dedicated to helping American companies (especially small- and medium-sized) succeed in international markets
- Assigned “internationally” (abroad and at multilateral institutions)

## US Commercial Service SCOs:  Role in General

- Supervise commercial sections
- Help US firms compete in foreign markets
- Facilitate access to US and foreign representatives
- Tap into Commerce Department’s vast network (more than 100 US Export Assistance Centers throughout country and 150 offices overseas)
- Liaise with other Federal trade agencies

## US Commercial Service SCOs:  Role at Multilateral Development Banks

- Report to Advocacy Center, US Commercial Service (US Department of Commerce)
- Integral part of United States Executive Director’s Office in each Bank
- Use prestige of US Office to advance US commercial interests

## US Commercial Service SCOs:  Role at Multilateral Development Banks

- Provide business counsel
- Share market information (identify specific project/procurement opportunities by country and sector)
- Recommend customized solutions
- Introduce to Bank experts and managers
- Facilitate sales presentations
- Help with searches for local partners
- Advocate (level playing field)
- Resolve commercial disputes (e.g., procurement and payment problems)