OVERVIEW OF THE INTER-AMERICAN DEVELOPMENT BANK IDB GROUP

OVERVIEW OF THE INTER-AMERICAN DEVELOPMENT BANK (IDB GROUP) IFI/BUSINESS OPPORTUNITIES SEMINARS CANADA SEPTEMBER 2015

The IDB Group Inter-American Development Bank Inter-American Investment Corporation Multilateral Investment Fund Governments, large companies Small and mediumsized businesses Microenterprises; grants, loans, equity

Canada and the IDB • Third largest shareholder in IDB among 22 nonborrowing 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% United States 30% Latin America and the Caribbean 50. 04% Canada 4% Japan, China Korea 5%

Sources of Funds § AAA rating; current OC rate 1. 18% (lending spread over LIBOR 0. 85%, Q 2 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 million Loan 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 Haiti * 4% 3%

IDB Business Opportunities: Bank-financed Contracts - Key Figures 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 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, 000 visitors 35, 000 registrations

Project Cycle and Resources Online Programming COUNTRY STRATEGY and ANNUAL PIPELINE REPORT Approval Preparation PROJECT DOCUMENTS Execution and Supervision SPECIFIC PROCUREMENT NOTICES PROJECT DOCUMENTS PROCUREMENT PLAN AWARDED CONTRACT NOTICES 3 -6 months Visit the web pages linked to the document titles indicated above 4 -8 years

Procurement: Roles & Responsibilities IDB finances project and oversees compliance Borrower / Executing Agency executes operations and is responsible for: ▪ ▪ Planning Evaluation Contract Award Contract Administration ▪ Bidding Documents ▪ Contract Bidders (you!) screen and identify opportunities, request clarifications as needed, submit proposals, sign contract with Borrower and execute the contract ▪ IDB Procurement Policies ▪ Agreement for validated country system IDB has NO contractual relationship with business community

Opportunities for Canadian Companies Procurement: • 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

Key Elements for a Successful Strategy (1) ü 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) ü 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. ü Contact team lead as soon as a potential opportunity is of interest. ü Focus on how your company can help the IDB specialist or executing agency achieve their specific objective.

Key Elements for a Successful Strategy (2) ü 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. ü Assess your competitive advantage to determine priority / niche markets ü Emphasize your in-country / regional experience and experience with other IFIs ü Invest in language capability as an essential tool and proof of commitment • Caribbean: English and/or French • Latin America: Spanish and/or Portuguese ü Follow bidding document instructions meticulously ü Mitigate risk – consider accounts receivable insurance (EDC)

IDB Resources & Online Information www. iadb. org/en/projects, 122 9. html for Monthly operational Summary (Pipeline) and Project Information www. iadb. org/en/projects/projectprocurement, 8148. html Procurement Plans Specific Procurement and Award Notices Procurement Policies Standard Bidding Documents Information on Contracts Awarded Table with validated Information Systems RSS Notifications www. devbusiness. com UN Development Business online for Advertising of international procurement IDB Business App Business Opportunities, projects, sectors, countries…

Procurement Notices

Contract Award Information

Contacts Public Information Center 1300 New York Avenue, N. W. Washington, D. C. 20577 USA Tel: 1 (202) 623 -2096 Email: [email protected] org On-line Information Request form: http: //www 5. iadb. org/pic/informationrequest. aspx @the_IDB www. facebook. com/IADB. org www. youtube. com/user/idb

THANK YOU!