1. INTER-AMERICAN DEVELOPMENT BANK LAC ENERGY & ENVIRONMENT CANADA SEPTEMBER 2015

2. LAC Energy Matrix Million Barrels of Oil equivalent per day, MBOe/d WorldWorldLACLACNorth AmericaNorth AmericaEuropeEurope Source: Energy Innovation Center at the IDB Primary Supply271,0100.0%15,85.8%53,919.9%34,712.8% Crude85,931.7%6,843.2%21,139.3%12,535.9% Natural Gas57,021.0%3,924.9%14,827.4%7,922.7% Coal79,029.2%0,85.0%9,217.1%5,816.6% Nuclear12,94.8%0,21.0%4,78.8%4,613.3% Biocombust. & Waste 26,910.0%2,616.5%2,24.1%2,77.9% Hydro6,32.3%1,38.2%1,22.2%0,61.7% Solar & Wind1,50.6%0,030.2%0,30.6%0,61.6% Geothermal1,30.5%0,21.0%0,30.5%0,10.3%

3. Source: http://www.worldbank.orghttp://www.worldbank.org % GDP Net Oil Exporters (2014) Oil Price Outlook Source: IMF World Economic Outlook Source: World Bank

4. Affordability: Estimated Electricity prices (US$ cents/kWh - 2011 ) Source: OLADE Electric Tariffs in LAC 2011, IEA Electricity Information 2012 CountryResidentialIndustrialCountryResidentialIndustrial Argentina23Honduras1420 Barbados3036Jamaica3225 Belize2217Mexico1011 Bolivia916Nicaragua22 Brazil2619Panama1716 Chile2115Paraguay85 Colombia1920Peru136 Costa Rica1413 Dominican Rep. 1820 Cuba2310Surinam37 Ecuador96 Trinidad+ Tobago 54 El Salvador 2418Uruguay2813 Grenada3228Venezuela21 Guatemala1816 Guyana2429 OECD Ave 2010 1611 Haiti3540 USA Ave 2010 127

5. Reliability: Estimated LAC Electricity Losses latest 5 year average (%) Source: Jimenez, Serebrisky and Mercado 2014, IEA 2012 CountryLossesCountryLosses Haiti60Bolivia14 Dominican Republic34Guatemala14 Guyana33Panama13 Paraguay32Bahamas12 Venezuela32El Salvador12 Nicaragua25Belize12 Honduras25Costa Rica10 Jamaica24Chile9 Colombia20Surinam8 Uruguay19Peru7 Ecuador19Barbados6 Mexico17Trinidad+ Tobago6 Brazil16LAC Average17 Argentina16OECD Average6

6. 22 23 24 25 26 27 Estimating Forecasting LAC-7 Evaluated regional and country current & future patterns in Electricity installed capacity & generation Sources of information Historical installed capacity and refinery capacity from Energy Information Administration (EIA) Official data for future installed capacity, Projected installed capacity according to official expansion plans. RankCountry Population GDP (PPP) GDP (Nominal) 1Brazil204,519,0003,2591,904 2Mexico121,006,0002,2241,232 3Colombia48,218,000683427 4Argentina43,132,000953563 5Peru31,153,000403218 6Venezuela30,620,000546209 7Chile18,006,000410264 8Guatemala16,280,0007950 9Ecuador16,279,000182100 10Cuba11,260,00021279 11Haiti10,994,000199 12Bolivia10,520,0007034 13 Dominican Republic 9,980,000 13662 14Honduras8,950,0004120 15Paraguay7,003,0006235 16Nicaragua6,514,0003012 17El Salvador6,459,0005329 18Costa Rica4,851,0006553 19Panama3,764,0008349 20Uruguay3,310,0007358 21Jamaica2,889,1872516 Trinidad & Tobago 1,223,9164230 Guyana735,55463 Suriname573,31195 Belize340,84432 Bahamas321,834118 Barbados277,82174 LAC619,180,4679,6865,475 LAC-7496,654,0008,4784,817

7. ElectricitySupply & Demand HydrFossil Fuels (Gas, Diesel,Others (Biomass, Nuclear, Wind, Solar, o Coal)Geothermal) Sources: 1986-2013 – IEA; 2013-2030 – INE/ENE HydroHydro Fossil Fuels (Gas, Diesel, Coal) Others (Biomass, Nuclear, Wind, Solar, Geothermal) Projected Demand 0 500 1,000 1,500 2,000 2,500 3,000 2025202420232022202120202019201820172016201520142013201220112010200920082007200620052004200320022001200019991998199719961995199419931992199119901989198819871986198519841983198219811980 Generation (TWh)Generation (TWh) Actual DataForecasts (official) LACLAC Generation from hydro is 39% of total generation, while fossil fuels represent 55% of total generation and other sources account for 6% By 2025, fossil fuel generation will be 59%, followed by hydrogeneration at 33%, and other sources will be 8% of total generation for Latin America. How will we pay for the investments required?

8. LAC Energy Matrix 2012 Thousands of Barrels of Oil equivalent per day, kBOe/d 68 % w.iadb.org/energydatabase

9. How IDB works with the private sector  Strengthening medium & large scale sustainable investments.  Supporting growth of small & medium enterprises.  Expanding access to finance, markets, basic services & green growth.  Financing innovative business models that serve the base of the pyramid

10. IDB’s financial products and services  Senior and subordinated loans  Syndicated loans  Partial credit guarantees  Equity and quasi equity  Capacity building & knowledge creation  Partnerships

11. Who are IDB’s private sector clients Micro, small and medium enterprises Large corporates and state-owned enterprises Special purpose vehicles International and local banks Investment funds Microfinance institutions Non-profit and other organizations Companies Financial Intermediaries

12. Industries & Services Infrastructure 36% 33% 29% Social Infrastructure 2% Financial Markets NSG Portfolio -- December 2014

13. Key NSG Lending Priorities Energy Renewable generation (Wind, Solar, Geothermal) Service improvements to energy transmission Focus on low access Transportation Toll Roads Airports Ports Increase capacity & access International safety standards Water & Sanitation Water supply Water and waste treatment Energy efficiency Sustainability

14. Project Type: Eurus Wind Farm Project in Mexico And largest operating wind project in the Latin America. Location: Mexico Approval:2009 Cost:US$600 million IDB Loan:US$45 million plus US$30 million CTF Sponsor:Acciona EURUS First large scale wind farm in Mexico EURUS First large scale wind farm in Mexico

15. Project Type: Hydroelectric Project in Costa Rica B loan funded by institutional investors. Project will represent 10% of CR energy’s installed capacity Location: Costa Rica Approval:2010 Cost:US$1.44 billion IDB Loan:US$200 million Loan + Guarantee Sponsor: ICE REVENTAZON Innovative financial structure REVENTAZON Innovative financial structure

16. Project Type: First operational large wind farm in Uruguay Bankability enhancements helped mobilize investments in UR renewable energy (US$2.3 bn). Tracking CO2 emissions through supply chain Location: Uruguay Approval:2012 Cost: US$153 million IDB Loan:US$42 million Sponsor: Abengoa PALMATIR Catalyzing non conventional renewable energy PALMATIR Catalyzing non conventional renewable energy

17. Project Type: Corporate Loan EGP Enel’s Bii Nee Stipa project will contribute to Mexico’s goal of reducing 50 % of its greenhouse gas emissions by 2020 Location: Mexico Approval:2012 Cost:US$169 million IDB Loan:US$76 million EGP Mexico Supporting EGP’s investments in a 74MW wind farm in Oaxaca, Mexico EGP Mexico Supporting EGP’s investments in a 74MW wind farm in Oaxaca, Mexico

18. Project Type: Photovoltaic Solar Power in Atacama Desert First large-scale solar power plants in Chile. Contributing to reducing CO2 emissions by 56,000 tons per annum Location: Atacama, Chile Approval:2013 Cost:US$82.7 million IDB Loan:US$21 million + C2F 21 million Sponsor:SolarPack POZO ALMONTE Giving solar power a boost POZO ALMONTE Giving solar power a boost

19. B Loan Program Loan Agreement A + B Loans B Loan Participation Agreement Participants Borrower IDB  One loan agreement – IDB is lender of record and administers entire loan  IDB and B Lenders as Senior Lenders  Participation structure allows participants to benefit from IDB’s privileges and immunities

20. Canadian Climate Fund - C2F “Mountain of Defeat” - High and uncertain costs for early commercial projects

21. IDB’s value proposition o Sector and financial expertise with regional knowledge o Long term financing with tailored repayment schedules o Competitive financial products and terms o Ability to mobilize additional sources of financing or support: B loans, co-loans, China Funds, C2F o Exemption from withholding taxes and de facto preferred creditor status o Environmental and social leadership o Shared value, innovation, outreach and dissemination

22. Five things you need to know about the IDB and Sustainability We are delivering on our sustainability commitments: Thirty-three percent of IDB lending in 2014 targeted environmental sustainability, climate change initiatives and renewable energy, totaling US$4.4 billion. We are adding value to our projects through the implementation of safeguards, to minimize environmental and social harm and to maximize positive environmental and social outcomes of our work: 88% of projects with high environmental and social risks rated satisfactory in safeguard mitigation measures. We are implementing a new strategy and vision for sustainable infrastructure, one that sees a shift from infrastructure being a fixed asset to infrastructure that is planned, built, and maintained as a service for people. We innovate through special initiatives that support the sustainability agenda: we place an emphasis on urban sustainability through the Emerging and Sustainable Cities Initiative, and we continue to leverage support from the Climate Investment Funds, the GEF and various donor agencies. We are improving gender and diversity mainstreaming: incorporating gender related results and sex-disaggregated indicators into more of our projects, to ensure that the benefits are felt by all.

28. THANK YOU!