Overview of the Inter-American Development Bank (IDB Group)

PSLO Energy Mission7 November 2013

John FerriterOffice of External Relations

The IDB Group – A Partner for Latin America and the Caribbean

Governments, large companies

Small and Medium-Sized Enterprises

Micro and small enterprises/private sector development

Inter-American Development Bank

Inter-American Investment Corporation

Multilateral Investment Fund

48 Member Countries

Brazil

United States

Canada

Mexico

United Kingdom

Spain

France

Norway

Sweden

Finland

Italy

Germany

Switzerland

Japan

VenezuelaGuyana

SurinameColumbia

Ecuador

Peru

Bolivia

Chile

Argentina

Paraguay

Uruguay

Haiti

DominicanRepublic

Jamaica

PanamaCostaRica

NicaraguaEl Salvador

HondurasBelize

Guatemala

Portugal

Austria

Denmark

Belgium

Netherlands

Israel

Croatia

South Korea

Slovenia

Barbados

Bahamas

Trinidad and Tobago

•26 Borrowers•22 Non-Borrowers

China

Voting Power | Capital Subscription

50.02%

30%

11%

4%

5%

Latin America & the Caribbean

United States

Europe & Israel

Canada

Japan, China & Rep. of Korea

Sources of Funds

• AAA rating; current OC rate 1.14% (lending spread over LIBOR 0.84%, Q4 2013)

• 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 1-2%, up to 40 years)

• Funds in Administration (42, incl. SWF, JSF, CTF)• Bonds, repayments, cofinancing

Secretary

External Relations

Strategic Planning & Development Effectiveness

Outreach and Partnerships

Auditor General

VP CountriesVP Sectors & Knowledge

VP Private Sector & Non-Sovereign Guaranteed

Operations

VP Finance & Administration

Southern Cone

Central America, Mexico, Panama &

Dominican Rep.

Andean Region

Caribbean

Country Offices

Infrastructure & Environment

Research & Chief Economist

Social Sectors Integration & Trade

Institutional Capacity &

Finance

Knowledge & Learning

Structured & Corporate Finance

IIC

MIF

Opportunities for the Majority

Finance

Human Resources

Information Technology

Budget & Admin. Services

Legal

PRESIDENTLuis Alberto Moreno

EXECUTIVE VPJulie T. Katzman

Haiti

BOARD OF EXECUTIVE DIRECTORS

Office of Evaluation and Oversight

Independent Consultation and Investigation Mechanism

Office of Institutional Integrity

Risk Management

BOARD OF GOVERNORS

Organization

Value Added

• Focus on Results: we have pioneered use of new methods (e.g., DEM) and indicators many others are adopting

• A strong commitment to small and vulnerable countries — $5.1 billion or 44% of lending in 2012

• Leading-edge safeguard policies

• Unique ways to reach and develop micro-, small and medium-size enterprises (Foromic, OMJ)

Instruments

• Financial Instruments: Loans, Grants, Guarantees, Investments, Technical Cooperation

• Knowledge Generation: Research and Data, Capacity Building, Advisory Services, Publications

• Project Preparation Facilities: Project Preparation and Execution Facility (PROPEF), Infrastructure Fund (InfraFund), Fund for lntegration Infrastructure (FIRII), Fund for Financing Disaster Prevention (FDP)

Public-Private Partnerships(Countries with best climate for PPP investments, from MIF/Economist Intelligence Unit Infrascope 2012 report, http://www5.iadb.org/mif/file.aspx?RESNUM=73753)

Priority Areas (IDB-9)

• 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% by 2012)• Climate Change, Renewable

Energy and Environmental Sustainability (25%)

13

IdentificationPreparation

Analysis Approval

Execution and Supervision

6 Months 4-8 Years

PROJECTPROFILE

PROCUREMENTPLANS

LOAN PROPOSALEA/EIA

ESMR

Programming

PROCUREMENT NOTICES

PMRs

PCR

Project Cycle (Sovereign-guaranteed loan operations)

Accountability

Instruments to enhance accountability, transparency and effectiveness

• Office of Evaluation and Oversight (OVE, 1999)• Office of Institutional Integrity (OII, 2004)• Development Effectiveness Overview (DEO, 2008)• Independent Consultation and Investigation

Mechanism (MICI, 2010)• Access to Information Policy (2010)

Key Numbers

1961-2012 Loans and guarantees: $220 billion Total cost of projects : $460 billion

Technical assistance & grants: $5.3 billion

2012 Loans, guarantees & GRF: $11.4 billion (122 projects)Non sovereign guaranteed: $1.5 billion (45 projects)Grants: $280 millionDisbursements: $7.4 billion

2013 Projected loan and guarantee approvals: $10+ billion.

Loan Approvals 2003 – 2012 (US$ billion)

0

2

4

6

8

10

12

14

16

18

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Loan Approvals by Sector, 2012(US$ billion)

Yearly and Cumulative Loan Approvals by Country (US$ billion)

General Capital Increase (IDB-9)

Ordinary Capital

$70 billion with an annual lending capacity of $10-12 billion – 2.4% paid-in – cumulative capital totals $171 billion

Haiti Debt relief of $479 million with FSO capital replenishment

$200 million/yr. in grants (2011-2020)

Bank reform agenda

•Guarantee development impact

•Use of the highest transparency standards

•Social and environmental safeguards

•Financial and risk management

Thematic Platforms

• Sustainable Emerging Cities: Integration of environmental, quality-of-life, security and governance/fiscal programs. $50 million for Action Plans for 50 cities by 2015. Pilot studies completed for Mar de Plata (AR), Montevideo (UR), Barranquilla (CO) and Trujillo (PE) with 140 indicators.

• Citizen Security: Grant support to study risk factors leading to crime, support policy reform and cross-border collaboration. $500 million to support Central America Security Strategy.

• Connect Americas: on-line platform sponsored by the IDB to help SMEs establish business links with clients, suppliers and investors from the rest of the region and around the world.

MapAmericas (www.iadb.org/en/MapAmericas)

Stories of Change (including Nuestra Gente,http://www.iadb.org/en/videos/watch,2173.html)

ContactsOffice of the Executive Director for ….Dir. ….Tel. 1 (202) 623-….Email: exd/0..@iadb.org

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

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