1. Annual Meeting 2013 Business Opportunities IDB Financing in Latin America and The Caribbean

2. 2 Economic perspectives in Latin America and the Caribbean 2012 2013 2014 GDP Growth rate by region Probability of recession (short therm) Forecast Sep´11 Forecast Sep´12 Source: IMF WEO 2012 Source: WEO Update, January 23 rd 2013

3. 3 by Region Southern Cone60% Andean Countries20% CID*14% Caribbean4% Haiti3% IDB Business Opportunities: Overview by Region Each year, the IDB finances about US$ 10b in new operations *Central American, Isthmus and Dominican Republic

4. Active Portfolio: 106 projects, worth $ 4 billion Pipeline: 77 projects, worth $ 6 billion Active PortfolioProjectsWorth (US$b) Agriculture and rural development442.4 Urban development and housing533.2 Environment and natural disasters301.3 Other1572.7 Active Portfolio: 83 projects, worth $ 7 billion Pipeline: 15 projects, worth $ 1.5 billion Active Portfolio: 126 projects, worth $ 8.7 billion Pipeline: 35 projects, worth $ 3.6 billion Active Portfolio: 108 projects, worth $ 11 billion Pipeline: 28 projects, worth $ 4 billion Active Portfolio: 60 projects, worth $ 6 billion Pipeline: 17 projects, worth $ 0.7 billion 4 Energy Social, Health and Education More Transportation Public Infrastructure IDB financed projects: Overview by Sector Water and Sanitation

5. ILLUSTRATIVE PROJECTS IDB Financing in Latin America and The Caribbean

6. Brazil - Rodoanel Mario Covas Project, Nothern Section  The program finances the construction of the 44-kilometer North section of the Mario Covas highway in Sao Paulo, Brazil  IDB Contribution: US$ 1.2 billion  Estimated Total Investment: US$ 3 billion Link to project Total (US$M) Studies and designs129 Program administration70 Audit, evaluation, and monitoring1 Principal civil works2,193 Supplementary civil works60 Technical supervision of works113 Environmental supervision of works24 Institution-strengthening17 Socioenvironmental viability measures410 6

7. Nicaragua - National Program for Sustainable Electrification and Renewable Energy (PNESER) Link to project  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$ 30.5 Million  Estimated Total Investment: US$ 30.5 Million Total (US$M) Engineering, supervision, and administration1 Network extension16 Settlement normalization6 Isolated areas with RE & Preinvestment in RE1 Energy efficiency2 Strengthening transmission2 Strengthening isolated systems1 Financial expenses1 7

8. Costa Rica - Reventazon Hydroelectric Project  The program co-finances the RHP, which will have a capacity of 305 MW, including a 13.5 MV mini generating plant at the base of the dam. It also strengthens Costa Rica’s electric generation, transmission, and distribution capacity  IDB Contribution: US$ 248 Million  Estimated Total Investment: US$ 292 Million Link to project Total (US$M) Engineering and administration7 Direct construction costs 249 Contingencies, finance charges, evaluation and monitoring 36 8

9. Colombia- Water Supply and Wastewater Management program in Rural Colombia Before After  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) Link to project Total (US$M) Program management 3 Inspection and supervision of works 3 Rural water and sanitation Infrastructure 49 Rural schools Infrastructure 1 Community development and institutional strengthening of service providers 1 Sustainable service delivery arrangements 1 Audit and monitoring 1 Unallocated costs and contingencies 1 9

10. 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 Total (US$M) Rehabilitation of basic economic infrastructure33 North Industrial Park50 Works supervision6 Monitoring and evaluation1 Contracting of support consulting services4 Feasibility, environmental, and engineering studies2 Compensation and socio-environmental mitigation4 10

11. Brazil: Expansion of Metro Line 5, Sao Paulo  The program finances the upgrading of existing trains, and the design, implementation and supervision of new systems for train operations, including telecommunications and power supply  IDB Contribution: US$ 480 Million  Estimated Total Investment: US$ 623 Million Link to project Total (US$M) Upgrading of trains19 Supervision3 Telecommunications and control79 Power supply223 Auxiliary systems274 Supervision23 Poverty impact monitoring1 Other studies and Audit1 11

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 Link to project Total (US$M) Infrastructure, facilities and sanitation340 Support for independent initiatives and prevention activities 22 Strengthening of management capacity10 Administration: includes audits and evaluations17 12

13. Argentina: Program To Support a Policy on Improving Equity in Education – Promedu II  The program finances the improvement of the education system and expansion of the education infrastructure, including construction of 255 preschools, 45 primary schools and 110 secondary schools  IDB Contribution: US$ 492 Million  Estimated Total Investment: US$ 547 Million Link to project Total (US$M) Improvement in the teaching of natural science and mathematics 28 New communication and information technologies in education 24 Literary works10 Youth Activity Centers (YAC)11 Choirs and orchestras4 Institutional improvement plans21 CAIEs5 Adaptation of school infrastructure61 Jurisdictional plans13 Cost observatory units1 Support for school transportation22 Support for students at risk of dropping out10 Administration10 Evaluation and monitoring1 External audit1 Construction and equipping of new school buildings299 Equipping20 Administration3 Institutional strengthening and training1 External audit, Evaluation and monitoring2 13

14. 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 Total (US$) Administration and supervision1 Studies, final designs and investments in civil works and equipment 11 Institutional strengthening and capacity building for policy, destination planning and management 3 14

15. PROCUREMENT PROCESS IDB Financing in Latin America and The Caribbean

16.  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 business opportunities are internationally published IDB financed contracts: Key Figures Information based on contract award statistics and procurement plan estimations 16

17. Business Community screens and identifies opportunities, submits proposal, signs contracts with Borrower and executes the contract Borrowers / Executing Agency execute operations and is responsible for:  Planning  Evaluation  Contract Award  Contract Administration Borrowers / Executing Agency execute operations and is responsible for:  Planning  Evaluation  Contract Award  Contract Administration IDB finances project and oversees compliance with procurement policies (ex-ante or ex-post) IDB has NO contractual relationship with business community IDB finances project and oversees compliance with procurement policies (ex-ante or ex-post) IDB has NO contractual relationship with business community IDB Procurement Policies Bidding Documents Contract Roles & Responsibilities related to Procurement 17

18. Eligibility: Open to all firms registered in IDB member countries Eligibility: Open to all firms registered in IDB member countries Principles:  Economy  Efficiency  Transparency  Competition  Equal opportunity Principles:  Economy  Efficiency  Transparency  Competition  Equal opportunity 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** 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** * Link to Policies for the Procurement of Goods and Works ** Link to Policies for the Selection and Contracting of Consultants Rules & Responsibilities 18

19. Execution and Supervision Programming Preparation Approval Link to COUNTRY STRATEGY Link to PROJECT PIPELINE Link to PROJECT DOCUMENTS Link to PROCUREMENT PLAN Link to SPECIFIC PROCUREMENT NOTES Link to CONTRACT AWARD Resources & online information 3-6 months4-8 years 19

20. www.iadb.org for Country Strategies and Project Pipeline www.devbusiness.com (UN Development Business online) for Notifications for large amount procurement Procurement Plans Specific Procurement Notices RSS Notifications Procurement Policies Standard Bidding Documents Information on Contract Awards www.iadb.org/procurement for Specific Information: Resources & online information (II) 20

21.  To Have a long-term perspective  To Be Systematic in screening information  To Be Strategic:  To assess Market  To assess Competition  To select Objectives  To Be Persistent  Contact executing agency when facing difficulties  To Have a long-term perspective  To Be Systematic in screening information  To Be Strategic:  To assess Market  To assess Competition  To select Objectives  To Be Persistent  Contact executing agency when facing difficulties Key success factors 21

22. http://www.iadb.org The Inter-American Development Bank Discussion Papers and Presentations are documents prepared by both Bank and non-Bank personnel as supporting materials for events and are often produced on an expedited publication schedule without formal editing or review. The information and opinions presented in these publications are entirely those of the author(s), and no endorsement by the Inter-American Development Bank, its Board of Executive Directors, or the countries they represent is expressed or implied. This presentation may be reproduced with prior written consent of the author. Questions ?