The InterAmerican Development Bank and Risk Mitigation

1
The Inter-American Development Bank and Risk
Mitigation
2
Presentation Outline

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

3
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

4
IDB Group Capital Shares and Voting Power
Canada
United States
4
Non-Regional Countries
30
11
5
Japan Korea
Latin America and the Caribbean
50
5
IDB Group

• 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

6
2005 IDB Loans and Guarantees
El Salvador
Costa Rica
Guatemala
Nicaragua
Venezuela
Argentina
Colombia
Honduras
Suriname
Bahamas
Barbados
Paraguay
Ecuador
Uruguay
Regional
Jamaica
Panama
Bolivia
Guyana
Mexico
Belize
Brazil
Chile
Haiti
Peru
Dominican Republic
Trinidad and Tobago
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Risk Mitigation at the IDB
THE IDB GROUP
Inter-American Development Bank (IDB)
Inter-American Investment Corporation (IIC)
Multilateral Investment Fund (MIF)
The IDB Group
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Risk Mitigation at the IDB
IDB Private Sector Department
Inter-American Investment Corporation (IIC)
Multilateral Investment Fund (MIF)

• Loans directly to private sector for projects in
  region
  

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

• Technical assistance grants to promote private
  sector developments
  

The IDB Group
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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
  

10
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

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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 IDBs member
  countries are eligible
  
• To join consultant database, fill out the form
  at http//www.iadb.org/pri/documents/form.doc
  
• and return to
• puran_at_iadb.org
• (Feel free to attach any additional relevant
  information with form)
  

12
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)

13
Office Contact Information

• Website http//www.buyusa.gov/idb/
• Miguel Romano, Business Liaison Manager
• [phone] mromano_at_iadb.org
• Barbara White, Assistant Business Liaison
  
  
• [phone] BarbaraW_at_iadb.org
• Gwen Rodriguez, Commercial Intern
• [phone] EXDUSIntern_at_iadb.org