Business Opportunities IDB Financing in Latin America and The Caribbean March 2014

1. Business OpportunitiesIDB Financing in Latin America and The CaribbeanMarch 2014

2. IDB Business Opportunities: Overview by Region Each year, the IDB finances about US$ 10b in new operations by Region *Central American, Isthmus and Dominican Republic

3. IDB financed projects: Overview by Sector Active Portfolio: 80 projects, worth $ 7.6 billion Pipeline: 8 projects, worth $ 857 million Active Portfolio: 86 projects, worth $ 11 billion Pipeline: 8 projects, worth $ 674 million Water and Sanitation Transportation Active Portfolio: 35 projects, worth $ 3.6 billion Pipeline: 8 projects, worth $ 907 million Active Portfolio: 90 projects, worth $ 7.2 billion Pipeline: 15 projects, worth $ 1 billion Social, Health and Education Energy Active Portfolio: 52 projects, worth $ 1.5 billion Pipeline: 9 projects, worth $ 276 million More Reform/Modernization of State

4. 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 • Goods and Works represent about 4,000 contracts, worth US$ 3 billion • 70% of the amount contracted had international advertising Contracts Value Information based on contract award statistics and procurement plan estimations

5. IDB Financing in Latin America and The Caribbean PROJECT Procurement Policies

6. 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 Inter-American 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 fromIDB 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

7. Roles & Responsibilities related to Procurement IDBfinances project and oversees compliance with procurement policies (ex-ante or ex-post) and agreements of accepted systems. IDB has NO contractual relationship with business community • Borrowers / Executing Agency execute operations and is responsible for: • Planning • Evaluation • Contract Award • Contract Administration IDB Procurement Policies Bidding Documents Contract Business Communityscreens and identifies opportunities, submits proposal, signs contracts with Borrower and executes the contract

8. Resources & online information Programming Approval Preparation Execution and Supervision PROJECT DOCUMENTS SPECIFIC PROCUREMENT NOTICES COUNTRY STRATEGY PROJECT PIPELINE PROCUREMENT PLAN AWARDED CONTRACTS 3-6 months 4-8 years

9. 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

10. 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

11. IDB Financing in Latin America and The Caribbean Illustrative PROJECTs

12. 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 Link to project

13. 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 Link to project

14. 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 Link to project After

15. 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 Link to project

16. 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 Link to project

18. IDB financed projects: Overview by Sector (US$) (Information SLIDE #2) Active Portfolio: 80 projects, worth $ 7.6 billion Pipeline: 8projects, worth $ 857 million Active Portfolio: 86 projects, worth $ 11 billion Pipeline: 8 projects, worth $ 674 million Water and Sanitation Transportation Active Portfolio: 35 projects, worth $ 3.6 billion Pipeline: 8 projects, worth $ 907 million Active Portfolio: 90 projects, worth $ 7.2 billion Pipeline: 15 projects, worth $ 1 billion Social Health and Education Energy Active Portfolio: 52 projects, worth $ 1.5 billion Pipeline: 9 projects, worth $ 276 million More Reform/Modernization of the State