The InterAmerican Development Bank and Risk Mitigation Presentation

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 Canada United States 4% 30% Japan & Korea Non-Regional Countries 11% 5% 50% Latin America and the Caribbean

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

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Risk Mitigation at the IDB THE IDB GROUP The IDB Group Inter-American Development Bank (IDB) Inter-American Investment Corporation (IIC) Multilateral Investment Fund (MIF)

Risk Mitigation at the IDB Private Sector Department The IDB Group § Loans directly to private sector for projects in region Inter-American Investment Corporation (IIC) Multilateral Investment Fund (MIF) § Loans to small and medium size companies for less than $10 million § 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. 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 § $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@iadb. org Barbara White, Assistant Business Liaison (202) 623 -3822; Barbara. W@iadb. org Gwen Rodriguez, Commercial Intern (202) 623 -3842; EXDUSIntern@iadb. org