1. IDB Transport Sector (INE/TSP) Sector Overview, Strategy and Portfolio INTER-AMERICAN DEVELOPMENT BANK

2. Outline of Presentation  Infrastructure and Transport Investment in the Region  IDB Participation in overall Infrastructure and Transport Lending in the Region  Trends in IDB Transport Lending  IDB Strategy for the Transport Sector  Transport Projects in the Region

3. Total Investment in Infrastructure (as a % of GDP) Total investment in infrastructure within the Region has seen a strong decline in the last two decades: from an average of 3.7% of GDP in the 1980-1985 period to an average of 2.2% of GDP in the 1996-2001 period.

4. Total Public and Private Investment in Infrastructure (as a % of GDP) This decline in overall infrastructure investment has been caused by a generalized retreat of public investment and the incapacity of the private sector to compensate the public sector retreat. PUBLIC PRIVATE

5. Total Investment in land-based Transportation* (as a % of GDP) TOTALPUBLICPRIVATE * Includes road and rail based transportation The decline in infrastructure investment has not affected all sectors equally: the transport sector has been severely impacted.

6. Total Investment in land-based Transportation by Country (as a % of GDP) With the exception of Chile, all countries have seen a strong decline in overall investments dedicated to land-based transport.

7. Total Public Investment in land-based Transportation by Country (as a % of GDP) This decline has been triggered by a generalized shortcut in public investment within the transport sector.

8. IDB Transport Lending Relevance of transport sector within Bank portfolio, although participation is declining (overall participation reached low-point of 8%) Transport lending since 1961: US$13.000 million; 11% of total Bank lending; and 35% of infrastructure lending

9. IDB Transport Lending Large drop in lending during 90’s Assumption of large private sector participation Fiscal constraints in borrowing countries Similar situation in other MDBs * IDB Private Sector: since 1995, 10.4% of lending in transport, 23% of the PRI portfolio

10. IDB Transport Lending

11. Transport lending by mode and MDB: concentration of financing on road sector (76% of total). This concentration is even greater for the IDB, with road sector projects accounting for 87% of total financing.

12. IDB Transport Lending IDB Transport Portfolio Total Transport Lending, by mode and MDB Concentration of projects in the road sector, with a recent niche in urban transport projects (bus-based) Although the WB and the IDB account for over 80% of total lending in the sector, the CAF is gaining increased relevance

13. IDB Transport Lending Brazil: main client in the transport portfolio (28%) Dominance of CAF in Bolivia, Colombia, Ecuador and Venezuela

14. Trends in IDB Transport Lending Objective: intensify IDB’s participation within the Transport sector Bank’s intention is to lend US$12 billion for infrastructure during the next five years Infrastructure Project Preparation Fund (Infrafund): will support scaling up of infrastructure investments Goal: lend US$12 billion for infrastructure in LAC during the next five years

15. Trends in IDB Transport Lending ROAD REHABILITATION & MAINTENANCE DESCENTRALIZATION URBAN TRANSPORT & COMPETITIVENESS Performance-based maintenance contracts (CREMA-type and micro enterprises) and Road Maintenance Funds SWAPs and PDLs (IDB new lending framework) Loans with sub-national governments Loans without sovereign guarantee Local currency Urban Transport Projects (BRT systems) Freight Transport Urban Logistics TERRITORIAL INTEGRATION & SOCIAL INCLUSION Improve accessibility and reduce transport costs of goods and passengers Rural and secondary roads

16. Trends in IDB Transport Lending PRIVATE PARTICIPATION REGIONAL INTEGRATION PPPs PRI IIRSA/PPP FIRII Fund-TCs AIRPORT & PORT SECURITY TCs INSTITUTIONAL STRENGTHENING Develop institutional and financial capacity of government agencies in charge of transport policy and programs

17. New Project Cycle

18. Detailed Project Cycle

19. Transport Projects-Pipeline 2008 (A)

20. Transport Projects-Pipeline 2008 (B) Total Pipeline 2008 (A+B)=US$3,586,400.00

21. Transport Projects-Pipeline 2009 (A)

22. Presented by Rafael Acevedo INE/TSP E-mail: rafaelac@iadb.org Thank you!