# Presentation: 245953

## The Inter-American Development Bank and Risk Mitigation

## Presentation Outline

- Overview of the Advocacy Center and IDB
- Risk Mitigation at the IDB
- Panama Canal Expansion

## 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

## 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% **

## Public sector projects
IDB provides 95% of its loans to the public sector 
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 provides 95% of its loans to the public sector
- 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 **

##     2005 IDB        Loans and Guarantees

- Argentina

- Bahamas

- Barbados

- Belize

- Bolivia

- Brazil

- Chile

- Colombia

- Costa Rica

- Dominican Republic

- Ecuador

- El Salvador

- Guatemala

- Guyana

- Haiti

- Honduras

- Jamaica

- Nicaragua

- Peru

- Suriname

- Trinidad and Tobago

- Uruguay

- Venezuela

- Regional

- Paraguay

- Panama

- Mexico

## Risk Mitigation at the IDB

**Inter-American Development Bank (IDB)**

- The IDB Group

**Inter-American Investment Corporation (IIC)**

**Multilateral Investment Fund (MIF)**

**THE IDB GROUP **

## Risk Mitigation at the IDB

**IDB Private Sector Department**

- Loans directly to private sector for projects in region

- The IDB Group

**Inter-American Investment Corporation (IIC)**

- Loans to small and medium size companies for less than $10 million

**Multilateral Investment Fund (MIF)**

- Technical assistance grants to promote private sector developments

## Risk Mitigation at the IDB

**Private Sector Department at IDB**
- _Products: _
**Loans**:
- A-Loan: direct loan between private company and IDB
- B-Loan: IDB part of consortium of lenders
**Political Risk Guarantee**: *investment guarantees against certain non-commercial risks*
**Partial Credit (Financial) Guarantee**: *comprehensive all-risk credit guarantees*

## Risk Mitigation at the IDB

**Private Sector Department at IDB**
- _Eligibility Requirements: _
- Located in an IDB borrowing member country
- Borrower of the loan must be a private sector company
- Target the development of infrastructure and/or capital markets in region
- Benefit the economy of the host country
- Demonstrate financial and technical viability
- Comply with IDB environmental and social requirements
- Meet IDB procurement standards

## Risk Mitigation at the IDB

**Private Sector Department at IDB**
- _Consultant Database: _
- PRI  hires consultants to perform due diligence on IDB financed projects
- Consulting companies in the IDB’s member countries are eligible
- To join consultant database, fill out the form at: _[http://www.](http://www.iadb.org/pri/documents/form.doc)__[iadb](http://www.iadb.org/pri/documents/form.doc)__[.org/](http://www.iadb.org/pri/documents/form.doc)__[pri](http://www.iadb.org/pri/documents/form.doc)__[/documents/form.doc](http://www.iadb.org/pri/documents/form.doc)_
- 	and return to:
**puran@iadb.org**
*(Feel free to attach any additional relevant information with form)*

**Notes:**
Here’s the beauty of the Private Sector Department, there’s contracting opportunities available through them too

## Panama Canal Expansion

**$5.25 Billion in Projects**
**Environmental Studies Underway**
**Recent Contracts for Financial Advisor, Legal Advisor, Program Manager, Risk Advisor**
**Major Constructions in Stages:**
**Dredging (approximately $400 million)**
**Dry Excavation (approximately $400 million)**
**Third Set of Locks (Approximately $2.23 billion)**

## Office Contact Information

**Website:  http://www.buyusa.gov/idb/**
**Miguel Romano, Business Liaison Manager  **
**(202) 623-2598; **_[mromano](mailto:mromano@iadb.org)__[@](mailto:mromano@iadb.org)__[iadb](mailto:mromano@iadb.org)__[.org](mailto:mromano@iadb.org)_
**Barbara White, Assistant Business Liaison                       **
**    ****(202) 623-3822; **_[BarbaraW](mailto:BarbaraW@iadb.org)__[@](mailto:BarbaraW@iadb.org)__[iadb](mailto:BarbaraW@iadb.org)__[.org](mailto:BarbaraW@iadb.org)_
**Gwen Rodriguez, Commercial Intern**
**    ****(202) 623-3842; EXDUSIntern@iadb.org**