Business Opportunities
IDB Financing in Latin America
and The Caribbean
March 2014
IDB Business Opportunities: Overview by Region
Each year, the IDB finances about
US$ 10b in new operations
by Region
Southern Cone
Andean Countries
CID*
Caribbean
Haiti
51%
18%
24%
4%
3%
*Central American, Isthmus and Dominican Republic
2
IDB financed projects: Overview by Sector
Active Portfolio: 80 projects, worth $ 7.6 billion
Active Portfolio: 86 projects, worth $ 11 billion
Pipeline: 8 projects, worth $ 857 million
Pipeline: 8 projects, worth $ 674 million
Transportation
Water and Sanitation
Active Portfolio: 90 projects, worth $ 7.2 billion
Active Portfolio: 35 projects, worth $ 3.6 billion
Pipeline: 15 projects, worth $ 1 billion
Pipeline: 8 projects, worth $ 907 million
Social, Health and Education
Energy
Active Portfolio: 52 projects, worth $ 1.5 billion
Pipeline: 9 projects, worth $ 276 million
Active Portfolio
Agriculture and rural development
Urban development and housing
Integration
Other
Projects Worth (US$b)
67
3.0
97
4.9
16
0.2
60
3.3
More
Reform/Modernization of State
3
IDB financed contracts: Key Figures
 Each year, IDB-financed operations
generate 20,000 to 30,000 contracts,
worth US$ 3-4 billion
 Consulting represents about 26,000
contracts, worth US$ 1 billion
Contracts Value
 Goods and Works represent about
4,000 contracts, worth US$ 3 billion
 70% of the amount contracted had
international advertising
Information based on contract award statistics and procurement plan estimations
4
IDB Financing in Latin America and The Caribbean
PROJECT PROCUREMENT
POLICIES
Procurement Policies
 Policies for the Procurement of Goods and Works Financed by the Inter-American
Development Bank*
 Policies for the Selection and Contracting of Consultants Financed by the InterAmerican Development Bank**
 Policy for the Use of Country Procurement Systems***
Principles:
 Economy
 Efficiency
 Transparency
 Competition
 Equal opportunity
Eligibility:
Open to firms registered in and origin of goods from
IDB member countries
* Link to Policies for the Procurement of Goods and Works
** Link to Policies for the Selection and Contracting of Consultants
*** Link to the Policy for the Use of Country Procurement Systems
6
Roles & Responsibilities related to Procurement
IDB finances project and oversees
compliance with procurement policies
(ex-ante or ex-post) and agreements
of accepted systems.
Borrowers / Executing Agency execute
operations and is responsible for:




Planning
Evaluation
Contract Award
Contract Administration
Bidding Documents
Contract
IDB Procurement Policies
IDB has NO contractual relationship
with business community
Business Community screens and
identifies
opportunities,
submits
proposal, signs contracts with Borrower
and executes the contract
7
Resources & online information
Programming
COUNTRY STRATEGY
Preparation
PROJECT PIPELINE
3-6 months
Approval
Execution and Supervision
PROJECT
DOCUMENTS
SPECIFIC PROCUREMENT NOTICES
PROCUREMENT
PLAN
AWARDED CONTRACTS
4-8 years
8
Resources & online information
www.iadb.org
for Country Strategies and Project Pipeline
www.iadb.org/procurement
for Specific Information: Procurement Plans
Specific Procurement Notices
RSS Notifications
Procurement Policies
Standard Bidding Documents
Information on Contract Awards
www.devbusiness.com
(UN Development Business online)
for Notifications for large amount procurement
9
Key success factors
 Have a long-term perspective
 Be systematic in screening information
 Be strategic and persistent:
 To assess Market
 To assess Competition
 To select Objectives
 Visit the Region or the country of your interest
 Contact the executing agency if you have questions
 Make connections with potential associates
 Understand the legal nuances for foreign firms (visas, taxes, registration if awarded)
 Learn about the country’s business culture
 Approach your Embassy or commercial office in Borrowing country to find out
firms from your country established locally
10
IDB Financing in Latin America and The Caribbean
ILLUSTRATIVE PROJECTS
Nicaragua - National Program for Sustainable Electrification
and Renewable Energy (PNESER)
 The program finances new electricity service connections,
normalizes existing ones, and supports the construction of 214
kilometers of transmission lines that carry renewable energy
sources
 IDB Contribution: US$ 31 Million
 Estimated Total Investment: US$ 31.1 Million
Total
(US$M)
Engineering, supervision, and
administration
Civil works
1
30.1
Link to project
12
Argentina: PROMEBA II Urban Development
 The program finances investments in water and sewage
networks, electricity, infrastructure, storm drains, gas
distribution, access roads, pedestrian networks,
community street furniture, green spaces, and
environmental mitigation works
 IDB Contribution: US$ 340 Million
 Estimated Total Investment: US$ 390 Million
Total
(US$M)
Infrastructure, facilities and sanitation
Support for independent initiatives and prevention
activities
Strengthening of management capacity
Administration: includes audits and evaluations
340
22
10
17
Link to project
13
Colombia- Water Supply and Wastewater Management program in
Rural Colombia
 The program finances the design, implementation, operation,
and management of water supply and wastewater systems,
providing close to 20,000 households with improved access to
water supply or wastewater systems
 IDB Contribution: US$ 60 Million (100% project)
Before
IDB
(US$M)
Management and supervision
Civil works
Institutional strengthening and sustainable
service
9
49
2
Link to project
After
14
Haiti: Caracol Industrial park: Infrastructure Program
 The program helps finance the construction of a full service
industrial park on a 250-hectare site near the town of Caracol,
including factory buildings, internal roads, water storage tanks,
and waste water treatment plants
 IDB Contribution: US$ 55 Million
 Estimated Total Investment: US$ 100 Million
Total
(US$M)
Engineering, administration, audit,
evaluation, and monitoring
Civil works
8
92
Link to project
15
Belize: Sustainable Tourism Program
 The program finances studies, designs and investments
in civil works and equipment to support the restoration
of existing tourism facilities, design of a master plan to
develop the industry, and a marketing strategy
 IDB Contribution: US$ 14 Million
 Estimated Total Investment: US$ 15 Million
Total
(US$M)
Administration, supervision
and evaluation
Civil works
1
14
Link to project
16
IDB financed projects: Overview by Sector (US$) (Information SLIDE #2)
Active Portfolio: 86 projects, worth $ 11 billion
Active Portfolio: 80 projects, worth $ 7.6 billion
Pipeline: 8 projects, worth $ 674 million
Pipeline: 8 projects, worth $ 857 million
Transportation
Water and Sanitation
Active Portfolio: 90 projects, worth $ 7.2 billion
Active Portfolio: 35 projects, worth $ 3.6 billion
Pipeline: 15 projects, worth $ 1 billion
Pipeline: 8 projects, worth $ 907 million
Social Health and Education
Energy
Active Portfolio: 52 projects, worth $ 1.5 billion
Pipeline: 9 projects, worth $ 276 million
Active Portfolio
Agriculture and rural development
Urban development and housing
Integration
Other
Projects Worth (US$b)
67
3.0
97
4.9
16
0.2
60
3.3
More
Reform/Modernization of the State
18