1. Social Impact Bonds in Colombia
January 18th, 2017

2. Social Impact Bonds in the world Partnerships to transform the way we understand solutions for complex social problems 34
Workforce Development 14
Homelessness 8
Criminal Justice 12
Child and family welfare 1
Environment and sustainability
Adults with complex needs
Education 11
Health

3. 9% 50% NATIONAL UNEMPLOYMENT YOUTH UNEMPLOYMENT 16%
Cifra del 35% sacada de informe de MEI de 2016.
YOUTH UNEMPLOYMENT
16%
35%
VICTIMS UNEMPLOYMENT
OF EMPLOYERS IN COLOMBIA SHOW DIFFICULTIES IN FINDING THE HUMAN RESOURCE THAT THEY REQUIRE
50%

4. Our differential factors
SIB generate high social impact and economic benefits
Focus on
outcomes
Drive performance management
Incentivize collaboration
Reduce risk for government
Culture of monitoring + evaluation
Invest in prevention
PROVEN EVIDENCE
Achieve scale
Sustain impact
Crowd in private funding
Support experimental interventions
Source: Brookings. Impact Bond in developing countries: early learnings from the field. New York: 2017, page 13.

5. Colombia’s SIB program We aim to design and test SIB in Colombia, starting with workforce development among vulnerable population.
Component I
SIB pilots - pay for sucess contracts for workforce development among vulnerable population.
First pay-for-success contract
Second pay-for-success contract
Third pay-for-success contract
Capacity building
Component II
Data infrastructure
Creation of the market
Policy advocacy
Component III
Case studies
Knowledge and lessons learned
Scale

6. First SIB Colombia Participants Geographic location Outcome metrics
OUR GOALS: Improve employment outcomes for vulnerable populations and victims of conflict in urban areas
Enhance knowledge and capacities around pay-for-success finance, social impact bonds and impact investing.
First SIB
Colombia
Participants
514 people
Geographic location
Bogotá, Cali, Pereira
Colombia is a pioneer in innovating, taking risks and experimenting to transform workforce development programs
Outcome metrics
Formal employment
Labor retention for 3 months
Labor retention for 6 months
Intervention scheme
1.5 years duration
Uses an inclusive employment model (training in specific skills and socio-emotional abilities, intermediation, psychosocial support).
OUR ATTRIBUTES:
Efficiency
Knowledge
Transformation
Targeted population
Victims of the conflict and vulnerable population between 18 and 40 years
Participants must not: have a formal job or participated in productive inclusion programs during the past two years.

7. The roles of each actor engaged in Colombia’s first SIB
Outcome payers
Investors
Intermediary
Service providers
Evaluator
Result verification
Compromise and disbursement of resources
Initial investment
Implementation of the program
Administration of the operation
Technical assistance providers
Support the design
Integral Manager
Administration of the investment and performance management

8. SPV - FIDUCIARY CONTRACT
The structure of the first SIB in Colombia and Latin America
CONSULTANTS
TECHNICAL ASSISTANCE FOR SIB DESIGN: INSTIGLIO
LEGAL ADVISOR F. PROBONO y DURAN & OSORIO
ADVISOR: CCC
PRINCIPAL INVESTORS
INVESTMENT
RETURN CONDITIONED TO RESULTS
KUEPA 3
IMPLEMENTATION GROUP 7
F. MARIO SANTO DOMINGO
F. BOLIVAR DAVIVIENDA
F. CORONA
OTHER INVESTORS
SPV - FIDUCIARY CONTRACT
CORPORACIÓN INVERSOR
INTERMEDIARY
FUNDACIÓN CORONA 4
VOLVER A LA GENTE
COLOMBIA INCLUYENTE
FUNDACIÓN CARVAJAL
PEOPLE WITHOUT JOBS
EVALUATION
INDEPENDENT EVALUATOR
OUTCOME PAYERS
REDUCTION OF UNEMPLOYMENT 5 6
PAY FOR RESULTS 8
PROSPERIDAD SOCIAL
BID/ FOMIN
SECO
INTERVENTION 2 1
PAY-FOR-SUCESS CONTRACT

9. SIB 1: preliminary results Partial results: 5 January 2018
Goal
Progress
People employed
514
410
79%
We have been able to monitor our results in real time:
Developing an online performance management tool
Building data infrastructure
Systematizing lessons learned
People retained
for 3 months
514 42
8.1%
People retained for 6 months - -
During 2017, the Colombian government paid COP $647 million for results (UDS $ ).
In 2018, it is estimated that outcome payers will pay around COP $1.432 million for results (USD $ ).

10. Next steps SIB 1, SIB 2 and market creation
First Pilot completion in July 2018 and evaluation of results.
SIB 2:
Design and structuration of second SIB with a local government.
SIB launch on July 2018.
Market creation:
Train-the-trainees strategy to strengthen stakeholders.
Public policy advocacy: presidential candidates and new government development plan.

11. Project outlook 2018-2019 We have achieved important milestones and we will continue working
NOV
2016
mar
2017
JAN
2018
JULY
2018
AUG
2018
DIC
2019
Kick-off
SIB Program
SIB 1
Kick-off
SIB 1 completion
SIB 1 implementation, evaluation and lessons learned systematization
Training
SIB 2
Kick-off
SIB 2 completion
Labor intermediation
Employment
SIB 2 implementation, evaluation and lessons learned systematization
3 – 6m retention
Market creation and lessons learned:
train the trainees strategy, data infrastructure, policy advocacy and stakeholder mapping
18/1/2018

12. Lessons learned SIB 1, SIB 2 and market creation
Legal structuring of a SIB
Verification of results using administrative data bases.
Cost structuring for SIB design and operation
Coordination and accountability within stakeholders
Performance management tools and processes
Three SIB pilots versus only one pilot
Market creation for new stakeholders and reducing transaction costs