OVERVIEW OF THE INTER-AMERICANDEVELOPMENT BANK (IDB GROUP)

IFI/BUSINESS OPPORTUNITIES SEMINARSCANADASEPTEMBER 2015

Inter-American Development

Bank

Governments, large companies

Inter-American Investment Corporation

Small and medium-sized businesses

Multilateral Investment

Fund

Microenterprises; grants, loans, equity

The IDB Group

Canada and the IDB

• Third largest shareholder in IDB among 22 non-borrowing member countries

• Seventh largest shareholder overall (4.0%) -- [US has 30% and Brazil and Argentina 11.2% each]

• Trust Funds -- Multi-donor (Transparency, Citizen Security,

Disaster Prevention, Gender and Diversity, Aid for Trade and Regional Infrastructure Integration)

-- Bilateral (Canadian Climate Fund for the Private Sector and Canadian Fund for Universal Identity)

48 Member Countries

•26 Borrowers•22 Non-borrowers

Voting Power| Capital Subscription

Europe and Israel 11%

Latin America and the Caribbean 50.04%

United States 30%

Canada 4%

Japan, China Korea 5%

Sources of Funds

AAA rating; current OC rate 1.18% (lending spread over LIBOR 0.85%, Q2 2015)

Ordinary capital: paid-in (2.4% of total) and callable subscriptions. Loans in dollars on market-based terms, 15-25 years; Local Currency Facility

Fund for Special Operations (FSO): Concessional terms (interest rates < 1%, up to 40 years)

Funds in Administration (67, incl. SWF, JSF, CTF) Bonds, repayments, cofinancing

Priority Areas

• Reducing Poverty and Inequality

(50% of portfolio by 2015) • Address Special Needs of the Most

Vulnerable Countries (35%)• Regional Integration (15%)• Focus on private sector (up to 20%)• Climate Change, Renewable Energy and

Environmental Sustainability (25%)

Loan Approvals by Sector, 2014

Accountability

Office of Evaluation and Oversight (OVE)

Office of Institutional Integrity (OII)

Development Effectiveness Overview (DEO)

Independent Consultation and Investigation Mechanism (MICI)

Access to Information Policy (2010)

Key Numbers

1961-2014 Loans and guarantees: $246 billion Total cost of projects : $506 billion

Technical assistance & grants: $5.9 billion

2014 Loans, guarantees & GRF: $13.8 billion (167 projects)Non sovereign guaranteed (NSG): $2.8 billion (63 projects)Grants (incl. GRF): $374 millionLoan Disbursements: $9.9 billion

2015 Projected loan and guarantee approvals: $12.5 billion

IDB Business Opportunities: Overview by Sub-Regions and Countries

Every year the IDB finances approx. $7 billion in new investment

operations [pipeline]

*

Southern Cone 51%

Andean Countries 18%

MX/CENTAM/DR 24%

Caribbean 4%

Haiti 3%

Each year, IDB-financed operations generate 30,000 contracts, worth $4 billion

Consulting represents about 26,000 contracts, worth $1 billion

Goods and Works represent about 4,000 contracts, worth $3 billion

IDB Business Opportunities: Bank-financed Contracts - Key Figures

Information based on contract award statistics and procurement plan estimations

Public Private Partnerships (PPPs)• IDB is involved in PPPs in various ways:

• SG - country can take an IDB: (1) loan to help develop its PPP framework; (2) a loan for its capital contribution to the PPP; or (3) a guarantee on the usability or other commitments the government has guaranteed under the PPP.

• NSG - company can borrow money for its capital contribution to the PPP (SCF)

• PPPAmericas Conference (MIF) - www.PPPAmericas.org

• Infrascope – index on PPP environment in LAC (MIF)

• IDB-MIF Regional PPP Advisory Services Program

450,000visitors

35,000registration

s

Execution and SupervisionProgramming Preparation Approval

COUNTRY STRATEGYand

ANNUAL PIPELINE REPORT

PROJECT DOCUMENTS

PROJECT DOCUMENTS

PROCUREMENT PLAN

SPECIFIC PROCUREMENT NOTICES

AWARDED CONTRACT NOTICES

3-6 months 4-8 years

Project Cycle and Resources Online

Visit the web pages linked to the document titles indicated above

Borrower / Executing Agency executes operations and is responsible for: PlanningEvaluationContract AwardContract Administration

Procurement: Roles & Responsibilities

IDB Procurement Policies

Agreement for validated country system

IDB finances project and oversees compliance

IDB has NO contractual relationship

with business community

Bidders (you!) screen and identify opportunities, request clarifications as needed, submit proposals, sign contract with Borrower and execute the contract

Bidding DocumentsContract

Opportunities for Canadian CompaniesProcurement:

•Goods, works and consulting services procurement opportunities in support of public sector projects

•Consulting services opportunities in due diligence for private sector projects (SCF, IIC)

•Consulting services opportunities to fulfill MIF projects

•Corporate procurement

•Sub-contracting on IDB public or private sector projects (not advertised through IDB)

Private Sector Loans and Guarantees:

•Project and corporate finance from SCF, IIC or OMJ

•Equity and Loans from the MIF

Opportunities for Canadian Companies

Key Elements for a Successful Strategy (1)

Frequent monitoring of projects:• Country Strategies (4-5 year time horizon)• Operational Program Report (annual – indicative pipeline of

projects)• Project Profile (www.iadb.org/projects) • Loan Proposal (procurement plan is annexed)• IDB procurement portal (www.iadb.org/procurement) or Devex (

www.devex.com) or local newspapers (National Competitive Bidding)

Develop and nurture relationships with executing agencies and IDB specialists (country offices & DC) for early warnings on projects. Be persistent – visit the IDB regularly and follow-up.

Contact team lead as soon as a potential opportunity is of interest.

Focus on how your company can help the IDB specialist or executing agency achieve their specific objective.

Key Elements for a Successful Strategy (2)

Engage strategic and credible local partners to spread costs, access other sources of capital, and increase competitiveness. Bids including local partners are generally favoured by the IDB and executing agencies.

Assess your competitive advantage to determine priority / niche markets

Emphasize your in-country / regional experience and experience with other IFIs

Invest in language capability as an essential tool and proof of commitment

• Caribbean: English and/or French

• Latin America: Spanish and/or Portuguese

Follow bidding document instructions meticulously

Mitigate risk – consider accounts receivable insurance (EDC)

IDB Resources & Online Information

www.iadb.org/projectsfor Monthly operational Summary (Pipeline) and Project Information

www.devbusiness.comUN Development Business onlinefor Advertising of international procurement

Procurement Plans Specific Procurement and Award NoticesProcurement Policies Standard Bidding DocumentsInformation on Contracts AwardedTable with validated Information SystemsRSS Notifications

www.iadb.org/project procurement

IDB Business AppBusiness Opportunities, projects, sectors, countries…

Procurement Notices

Contract Award Information

Public Information Center1300 New York Avenue, N.W.Washington, D.C. 20577 USATel: 1 (202) 623-2096 Email: pic@iadb.org

On-line Information Request form: http://www5.iadb.org/pic/informationrequest.aspx

@the_IDB

www.facebook.com/IADB.org

www.youtube.com/user/idb

Contacts

THANK YOU!