# Presentation: 064610

## Multilateral Development Bank

**Multilateral Development Bank**
**Projects & Financing**
**	****	****	**
**	****	****	**
**	****	****	**World Bank			African Development
- 							Bank
**	****	****	**
**	****	****	**Asian Development** ****	****	**Inter-American
- 			Bank				Development Bank
**	****	****	**European Bank for
- 			Reconstruction & Development

_**T**__**RADE **__**A**__**DVOCACY &**_
_** **_
_**M**__**ULTILATERAL **__**D**__**EVELOPMENT**__** B**__**ANK **__**C**__**ENTER**_

## TRADE ADVOCACY & MULTILATERAL DEVELOPMENT BANK CENTER

- Contact point for official USG advocacy support at all levels above *de minimis* – incl. Presidential
- For deals involving foreign government tenders or procurements
- Streamlined questionnaire & anti-bribery agreement
- Coordinator of MDB Commercial Liaisons

## MDB Commercial Liaisons

- Conduct outreach to U.S. business community
- Promote risk mitigation strategies for emerging market activities
- Counsel companies (*i.e.,* how to work with MDBs)
- Advocate on procurement and contracting issues
-   Status of projects
-   Non-payment issues
-   Ensure equal treatment for U.S. companies
-   Distribute information on projects to U.S. businesses
-  Support U.S. Executive Director and the Administration
-  Promote U.S. exports by increasing market share for U.S. businesses

## Procurement Opportunities 

- 3 types of opportunities:
- Bank’s own procurement
- Technical assistance consultancies
- Bank-funded project procurements
- Competitive bidding conducted by borrower  and overseen by the MDBs
- Visit bank websites for tender notifications and details

## Bank Procurement Resources

| Bank |  |
| --- | --- |
| IFC |               IBRD  www.worldbank.org |
| IDB | www.iadb.org  |
| AfDB | www.afdb.org  |
| ADB | www.adb.org  |
| EBRD | www.ebrd.com |

## MDB Procurement Cycle

**Programming**

**Identification**

**Preparation**

**Analysis**** **

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

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

**Borrower**
**& Bank**

**Bank**

**1-2 Years**

**Out Years**

**PROJECT**
**OUTLINE**

**PROCUREMENT**
**PLAN**

**Project Report**

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

**Borrower**
**& Bank**

**Borrower**
**& Bank**

**Borrower**
**& Bank**

**Borrower**
**& Bank**

**MDB Procurement Cycle**

**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.  

## MDB Financing Instruments

**Senior, subordinated, convertible**
**A - Loans &      B - Loans**
**LT (up to 10y or more) or  ST revolving**
**Floating/ fixed rates**
**Choice of currency**
**Syndication for larger amounts**

**Common stock or preferred **
**Minority positions only (up to 35%)**
**Mezzanine debt**

**Coverage of specific risks (*****i.e.***** political)**
**Commodity-backed  instruments**
**Trade facilitation program **
**     ****(with participation**
**        ****of local banks)**

- _Guarantees_

- _Equity_

- _Loans_

## Trade Finance

| Bank: |  |  IFC  | IDB  | ADB | EBRD |
| --- | --- | --- | --- | --- | --- |
| Ceiling |  |    $1Billion | $ 400 Million |  $200 Million | $1 Billion |
| Cover |  | 100% | 100% | 80% | 100% |
| Maturity |  |  Up to 3 Yrs | Up to 3 Yrs | 5 years | Up to 3 years |
| Fees |  | None | None | None | None |
| Pricing |  |   75 BPs (min)
400 BPs (max) | 75% of confirmation fee | 90 days: 75-200 bps,
1 year: 125-250 bps
3 years: up to 350 bps  | Flexible |
| Country Limitations |  | None | IDB Member Countries | ADB Member Countries | EBRD Countries of Operation |
| Product Limitations |  | Vice, PCBs, child- labor, asbestos, drift nets, etc  | Vice, Environ., (Any involvement, even if unrelated to IDB financing) | Arms, ammunition, radioactive materials, nuclear reactors and fuel | Various |
| Party Limitations |  | Public Sector Buyers | Issuing and Confirming Banks | Public & Private | Public & Private |
| Rated (S&P) |  | AAA | AAA | AAA | AAA |

## Trade Finance Applications

|  |  | IFC      | IDB    | AfDB | ADB | EBRD |
| --- | --- | --- | --- | --- | --- | --- |
| Import Finance |  |  |  |  |  |  |
| Pre-Export Finance |  |  |  |  |  |  |
| Equipment |  |  |  |  |  |  |
| Bid Bonds |  |  |  |  |  |   |
| Performance Bonds |  |  |  |   |  |  |
| Advance Payments |  |  |   |  |  |  |
|  |  |  |  |  |  |  |

## Project Finance

| Bank: |  | IFC    |   IDB | AfDB | ADB | EBRD |
| --- | --- | --- | --- | --- | --- | --- |
| Ceiling |  | 25% Greenfield 50% Expansion | $200 Million |      33% | Negotiated w/ borrowing countries | 35% total project value |
| Maturity |  |  7-12 years  | 8-15 years      | 15 years
Up to 4 year grace period  | Up to 20 yrs | Up to 20 yrs |
| Fees |  | 1% front-end .5% per annum | Market driven; case-by-case basis | Variable,       Up to 2% | 1% front end,  0.75% commitment fee | Commercial rates |
| Pricing |  | Fixed or floating market rate | Fixed or floating market rate | Fixed or floating market rate | Fixed or floating market rate | Fixed or floating market rate |
| Country  Limitations |  | Member Developing Country | Member Countries | Member Countries | Member Countries | EBRD Country of Operations |
| Project Limitations |  | Env., Social, Procurement Requirements | Env., Social, Procurement Requirements | Env., Social, Procurement Requirements | Env., Social, Procurement Requirements | Env, Social,               No gaming |
| Party Limitations |  | Private Sector Borrowers | Private Sector Borrowers | Private Sector Borrower | Public and Private Sector Borrowers | None |
| Rated (S&P) |  |        AAA |        AAA |        AAA | AAA |           AAA |

## ADVOCACY CENTER MDB LIAISON OFFICES

**IFC:****	****Will Center,  **_**will.center@mail.doc.gov**_
**	****	****U.S. Executive Director’s Office**
**	****	****1818 H St. NW – Room 13- 525**
**	****	****Washington, DC  20002**
**	****	****Tel: (202) 458-0120****	****	****Fax: (202) 477-2969**
**IDB:****	****Miguel Romano,**** **_**miguel.romano@mail.doc.gov**_
**	****	****U.S. Executive Director’s Office**
**	****	****1300 New York Ave., NW, Room NE- 465**
**	****	****Washington, DC  20577**
**	****	****Tel: (202) 623-2598****	****    ****	****Fax: (202) 623-2039**

## AfDB:	Christel Fredrikson, christel.fredrikson@mail.doc.gov
		U.S. Commercial Liaison Office
		ATR BAD, 16, rue de Syrie
		EPI A: 3/A, 1002 Tunis Belvedere, Tunisia
		Tel: 011 216 - 71- 831- 117 	Fax: 011 216-71- 830 - 244
ADB:	Kenneth Reidbord, kenneth.reidbord@mail.doc.gov
		American Business Center, U.S. Commercial Liaison Office
		25th Floor, Ayala Life – FGU Center
		6811 Ayala Avenue, Makati City 1226, Metro Manila
		Tel: 011 (63-2) 887-1345  	Fax: 011 (63-2) 887-1164
EBRD:	Sanford Owens, sanford.owens@mail.doc.gov
		U.S. Commercial Liaison Office
		One Exchange Square
		London, EC2A 2JN
		Tel: 011 44 20 7588 8490  	Fax: 011 44 20 7588 8443

- 		**U.S. Commercial Liaison Office**
**	****	****ATR BAD, 16, rue de Syrie**
**	****	****EPI A: 3/A, 1002 Tunis Belvedere, Tunisia**
**	****	****Tel: 011 216 - 71- 831- 117 ****	****Fax: 011 216-71- 830 - 244**
**ADB:****	****Kenneth Reidbord, **_**kenneth.reidbord@mail.doc.gov**_
**	****	****American Business Center, U.S. Commercial Liaison Office**
**	****	****25****th**** Floor, Ayala Life – FGU Center**
**	****	****6811 Ayala Avenue, Makati City 1226, Metro Manila**
**	****	****Tel: 011 (63-2) 887-1345  ****	****Fax: 011 (63-2) 887-1164**
**EBRD:****	****Sanford Owens, **_**sanford.owens@mail.doc.gov**_
**	****	****U.S. Commercial Liaison Office**
**	****	****One Exchange Square**
**	****	****London, EC2A 2JN**
**	****	****Tel: 011 44 20 7588 8490  ****	****Fax: 011 44 20 7588 8443**

**A****DVOCACY ****C****ENTER**** **MDB **L****IAISON**** O****FFICES**