BoD AC IDB Panel

The Inter-American Development Bank and Risk Mitigation: 

The Inter-American Development Bank and Risk Mitigation

Presentation Outline: 

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

IDB Group: 

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: 

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%

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 IDB Group

2005 IDB  Loans and Guarantees: 

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: 

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: 

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: 

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: 

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: 

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.iadb.org/pri/documents/form.doc and return to: puran@iadb.org (Feel free to attach any additional relevant information with form)

Panama Canal Expansion: 

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: 

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