02/05/10 idb engagement with civil society, foundations and philanthropic institutions luis alberto...
TRANSCRIPT
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IDB engagement with civil society, foundations and philanthropic institutions
Luis Alberto FierroResource Mobilization Lead SpecialistIDB Office in Europe
Como, ItalyNovember 2010
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Agenda
IDB Capital increaseIDB RealignmentReconstruction in Haiti
Overview of the IDB
Partnerships with the Private Sector
Partnerships with Civil Society
As a client: Diversified menu of financial and non-financial services
As a partner: Active stakeholder and essential source of experience and know-how
As consultant/provider of services: Contract opportunities within projects financed by the IDB Group
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Overview of the IDB
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Who we are
• The IDB is the oldest and largest of the regional multilateral development banks.
• Main source of multilateral financing and expertise for sustainable economic, social and institutional development in Latin America and the Caribbean.
• Provides solutions to development challenges by partnering with client governments, companies and civil society organizations.
• The IDB produces financial and non-financial products for the region as well as funding research institutes, through three mechanisms—the Bank itself (IDB); the Inter-American Investment Corporation (IIC) and the Multilateral Investment Fund (MIF).
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IDB Group Operations
• Public sector loans with sovereign guarantee; investment, policy-based and emergency loans; grants: www.iadb.org.
• Private sector loans and guarantees through the Structured and Corporate Finance Dept., primarily for infrastructure and capital markets projects: www.iadb.org/scf.
• Expanded mandate: loans to sub national entities without sovereign guarantee.
• Inter-American Investment Corporation (IIC): SME loans < $10 million www.iic.int. The IIC also provides funding to financial institutions that serve the small and medium-size corporate market.
• Finpyme Program: SME business diagnostic review services in Central America and the Caribbean.
• Multilateral Investment Fund (MIF): grants for microfinance, training, business regulation and deregulation; loans; and equity funds. Main areas: Innovation and Knowledge Management; Business development; Access to Finance; Social Entrepreneurship; and Development Effectiveness
• Remittances. www.iadb.org/mif.
How we do it
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Brazil
United States
Canada
Mexico
United Kingdom
Spain
France
Norway
Sweden
Finland
Italy
Germany
Switzerland
Japan
Venezuela Guyana
SurinameColumbia
Ecuador
Peru
Bolivia
Chile
Argentina
Paraguay
Uruguay
Haiti
DominicanRepublic
Jamaica
PanamaCostaRica
NicaraguaEl SalvadorHondurasBelize
Guatemala
Portugal
Austria
Denmark
Belgium
Netherlands
Israel
Croatia
South Korea
Slovenia
Barbados
Bahamas
Trinidad and Tobago
China
26 Borrowing members.
22 non-borrowing member countries (16 in Europe, and Israel).
Who we are
Israel
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Voting Power / Capital Subscription
Latin America & the CaribbeanJapan, China &
Rep. of Korea
5%
United States
30%
Canada
4%
Europe and Israel
11%
50%
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European contributions to IDB The European member countries have much to offer to Latin
America and the Caribbean, including their valuable human capital, and world-class technological innovations.
Some areas in which European nations provide leadership are economic, social and environmental policies and programs.
These contributions can be expressed through their people, and through the permanent policy dialogue held between representatives of the public and private sectors with the IDB Group.
There are about 180 European staff members, which is approximately 10 % of the total staff. There are also secondments from European nations and institutions, in areas such as sustainable energy, climate change, gender, etc.).
In addition to their participation in the Ordinary Capital ,the Fund for Special Operations, the Inter-American Investment Corporation, and the Multilateral Investment Fund (MIF), European member countries have also contributed to single-donor and multi-donor trust funds.
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European contributions to IDB
European multilateral and bilateral financial institutions also provide co-finance for IDB loans and non-reimbursable grants.
Some European cofinance partners include the European Investment Bank (EIB), the Nordic Investment Bank (NIB), the German development bank (KfW), the French development agency (AFD), the Spanish development agency (AECID), the Austrian Development Bank, other members of the European Development Finance Institutions (EDFI), and other multilateral and bilateral development institutions.
The IDB is participating in the Latin American Investment Facility (LAIF) of the European Union, which provides incentives for cofinance between European and Latin American Financial institutions.
The IDB is participating in the funding from the Global Environment Facility (GEF), the Climate Investment Funds (CIF), and other global funds.
13 countries in Latin America and the Caribbean are members of the International Renewable Energy Agency, established in Bonn. 02/05/10
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Impact of the financial crisis
Increasing financial needs from beneficiaries countries
Yearly average of approvals 1999-2008=
US$ 6,7 billion
Approvals 2009 =
US$ 15,5 billion and
US$ 480 million in non-reimbursable technical
assistance
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Bank's capital increase
Cancun Declaration – March 2010
Agreement on a US$70 billion increase in the Ordinary
Capital, providing a lending capacity of up to US$ 12 billion a
year,
Agenda for a Better Bank
Ensuring Development Impact
Use of the highest standards of transparency
Social and Environmental Safeguards
Financial and Risk Management
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A successful realignment launched in 2007
Decentralized organization, with a greater number of staff and decision-makers in Country Offices.
In 2015, we expect to have transferred 50% of the operational
capacity in Country Offices.
Loans approval timing has almost halved (from 12 to 7
months).
New measure to increase development effectiveness and
reduce risks
Clients with increasing importance: local governments and
private sector
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A successful realignment launched in 2007
EXECUTIVE VPJulie Katzman (ai)
SecretaryGermán
Quintana
External Relations
George de Lama
Strategic Planning and Development EffectivenessLuis Estanislão Echeberría
Risk ManagementFernando Yñigo
Strategic Partnerships
Bernardo Guillamón
General Auditor
Alan Siegfried
VP CountriesRoberto Vellutini
VP Sectors and Knowledge
Santiago Levy
VP Private Sector and Non-Sovereign
Guaranteed Operations Steven Puig
VP Finance and Administration
Manuel Rapoport
Southern ConeCarlos Hurtado
Central America, Mexico, Panama and
Dominican RepGina Montiel
Andean CountriesAna Rodriguez
CaribbeanGerard Johnson
Country Offices
Infrastructure and
EnvironmentAlexandre Rosa
Research and Chief Economist
Eduardo Lora
Social Sectors Kei Kawabata
Integration and TradeAntoni
EstevadeordalInstitutional Capacity and
FinanceMario Marcel
Learning and Knowledge
Graciela Schamis
SCF / Corporate Finance
Hans Schulz
IICJacques
Rogozinski
MIFJulie Katzman
Opportunities for the Majority
Luiz Ros
FinanceEd Bartholomew
Human ResourcesGuillermo Miranda
ITSimon Gauthier
Budget and AdmJohn Hauge
LegalJames Spinner
PRESIDENTLuis A. Moreno
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Partnership with the Private Sector
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Highest priority
Developmental Impact: employment generation to escape poverty
Focus in 5 Sectors
Demand oriented and Crowding in
C/D countries
Developmental Impact: employment generation to escape poverty
Focus in 5 Sectors
Demand oriented and Crowding in
C/D countries
Countercyclical role
Setting the foundations of long term development by partnering with the private sector
5 sector pillars
IDB Strategy
• financial and advisory support for private and sub-national clients
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Working with the private sector
Micro and Small Enterprises
SMEs and Small Banks
Large Companies and Banks
Inter-American Development BankStructured and Corporate Finance
Department
Annual Sales > US$ 100m
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The IDB can provide unique advantages
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Working with the IDB as a source of finance is similar to working with any bank…
1. Sponsor: Identify and reach out to the appropriate window/contact at the IDB Group (please note project has to be located in Latin America and the Caribbean).
2. Sponsor: Provide preliminary information to the IDB: Brief project description Viable Business and Financial Plan (project
cost; debt; equity) Company information (nationality; track
record, financial statements) Appropriate studies (design; feasibility;
environmental and social impact assessments, etc)
3. Bank: Reviews info
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1. Sponsor/Bank: negotiate mandate letter (formal agreement with the sponsor to conduct due diligence).
2. Bank: conducts due diligence with the support of specialized consultants.
3. Bank and Sponsor: agreement on the term sheet (loan conditions suggested by the IDB).
4. Bank and Sponsor: internal approval by the Bank, financial closing and disbursement.
Approximate time: 3 to 8 months, depending on the project
Working with the IDB as a source of finance is similar to working with any bank…
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Forge new strategic partnerships with corporate and family foundations, civil society, individual philanthropists, NGOs, and all other potential private sector partners.
Connect interested donors with IDB projects and programs as potential financial and non-financial contributors.
Harness the private sector’s innovation, entrepreneurship, creativity, determination, and management skills to achieve developmental goals.
Facilitate and advance the culture of social investment & philanthropy in LAC, playing a key public advocacy and convening role for the subject.
Promote contributions to multi-donor trust funds in strategic areas (e.g. climate change, renewable energy, knowledge economy, water and sanitation, natural disaster prevention, etc.)
As a Partner – Our Priorities
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Multi-Donor Trust Funds at the IDB
Aid for Trade Fund
Anti-Corruption Trust Fund
AquaFund (water and sanitation)
Disaster Prevention Fund
Food Crisis Response Strategic Thematic Fund
Gender and Diversity Fund
Knowledge Economy Fund
Institutional Capacity Strengthening Fund
Market Solutions to Mobilize Social Change Fund
Sustainable Energy and Climate Change Multi-donor Fund
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European contributions to Trust FundsMulti-donor Trust Funds• Aid for Trade (Switzerland, UK)
• Anticorruption Fund (Norway)
• Aquafund (Austria)
• Disaster Prevention Fund (Spain)
• Gender and Diversity (Austria, Norway, UK)
• Knowledge Economy (Finland, Spain)
• Market Solutions to Mobilize Social Change (Austria)
• Mesoamerican Health (Spain)
• Sust. Energy & Climate Change (Germany, Italy, Spain, UK)
Single-donor trust funds• Danish Trust Fund for Consulting
• Finnish Technical Assistance Fund
• French Technical Cooperation Fund
• Italian Consulting Firms Trust Fund
• Italian Fund for MIF Project Preparation
• Italian F. Microenterprise Development
• Italian Fund for Inf. & Comm. Tech.
• Italian Fund for Reg. Competitiveness
• Norwegian Consulting Services
• Portuguese Technical Cooperation Fund
• Spanish Fund for Water and Sanitation
• Span. Social Entrepreneurship Program
• Spanish General Cooperation Fund
• Swedish Fund for Consulting Services
• Swiss Fund for Consulting Services
• UK Markets and Governance for Poverty Reduction Fund
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Partnership with Civil Society
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We partner with…
• Public sector: strategic bilateral donor partnerships which bring new and innovative donor development models to the region.
• Private sector foundations: Forge new strategic partnerships with corporate and family foundations to advance development in the region.
• Private sector corporations: Advance corporate social responsibility in LAC, playing a key public advocacy and convening role making CSR more strategic.
• Civil Society Organizations: on consultations of key strategies and policies, and delivery of services.
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Our Strategic Initiatives…
We seek to> Leverage human and financial resources from the IDB with resources and activities run by private businesses, philanthropists, foundations, NGOs to support our strategic initiatives.
Sustainable Energy &Climate Change
4 pillars: (i) renewable energy, (ii) biofuel development, (iii) access to carbon finance, and (iv) adaptation to climate change.
Water and Sanitation Initiative
4 goals: (i) 100 cities (ii) 3,000 rural communities, (iii) water defenders, and (iv) efficient and transparent utilities
Opportunities for the Majority
Innovative business solutions to raise the standard of living of the region’s low income citizens
Education3 priorities: (i) early childhood development, (ii) quality of education,
and (iii) school-to-work transition
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Challenges and Opportunities in Haiti
Haiti debt totally cancelled (US$479 million) with a replenishment of the concessional Fund for Special Operations (FSO)
US$200 million in grants for Haiti each year from 2010 till 2020
(totalling US$2 billion to be granted)
Grants and Bilateral/Multilateral Financing as an incentive for
private sector investment
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Other Priority areas
• Gender and Diversity: fight discrimination and social exclusion due to racial and ethnic origin, HIV status, gender, and mental and physical disabilities.
• Natural Disaster Insurance Facility for Central America: an adaptation solution to climate change that is rapidly gaining the support of countries and international donors by transferring risk to the global capital markets.
• Aid for Trade: important complement to a trade-lead development strategy, and is being established in the context of the Global Aid for Trade Initiative.
• Food Crisis Response Fund: short term food-crisis alleviation and longer-term actions that increase agricultural and agro-industrial.
• Neglected Tropical Diseases (NTDs): eliminate NTDs in the region through both health and water & sanitation interventions.
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Corporate Partnerships
Thematic Partnerships
• Partner to create CSR/CS initiatives and cause related marketing campaigns on regional and national levels across Latin America.
• Engage in flexible and multi faceted partnerships and collaborations in strategic fields
• Provide solutions for Corporate Philanthropy
Cofinancing:
• Mobilize new resources to complement IDB’s lending operations in order to capture the region’s broad horizon of economic opportunities.
Lines of business:
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Corporate Partnerships: IDBs Strengths
• Strong knowledge of the region
• Strong presence in the region
• Largest Multilateral Organization in the region
• 50 years of existence
• Uniquely positioned to be a focal point for international partnerships focused on Latin America
• Allows corporate partners to maximize the efficiency and impact of CSR/CS initiatives on a national or regional level
• Single Window for Co lending opportunities with and without sovereign guarantee across Latin America
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Some of our Partners
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A few Public Sector Partnerships in EuropeMemorandums of Understanding in Europe • 2007
– European Commission
• 2008
– UNESCO
– AFD (French Development Agency)
– City of Milan
• 2009
– European Investment Bank (amendment)
• 2010
– OECD
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A few Private Sector PartnershipsMemorandums of Understanding in Europe• 2009
– CEOE (Spanish Confederation of Employers' Organizations )
– CEPES (Spanish Business Confederation of Social Economy )
– BBVA (Spanish bank)
• 2010
– SACE SpA (Italian export guarantee company)
– Fundación Atlético de Madrid (soccer club)
– PromoMadrid (Madrid promotion entity)
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Mesoamerican Health Initiative
• An interesting example of public-private-multilateral partnership is the Mesoamerican Health Initiative.
• This brings together grants of $50 million each from the Bill and Melinda Gates Foundation, the Carlos Slim Foundation of Mexico, and the Spanish Government, and will be managed by the IDB.
• It seeks to provide donations to close the gap in health equity in Mesoamerica for those in the lowest income quintile. This will be achieved through an expansion in the coverage and utilization of reproductive, maternal, neonatal and child basic health services for women and children under 5 in the lowest income quintile.
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Resource Mobilization in Europe• A total resource mobilization of US$ 1,355 million
was achieved in 2009 from European-based bilateral and multilateral institutions. This includes contributions to trust funds and co-financing.
• The Government of Spain channeled resources of its Water and Sanitation Fund through the IDB.
• The European member countries supported the IDB capital increase (from US$ 101 to 171 billion), as well as the replenishment of the Fund for Special Operations, and the grant facility for Haiti.
• Project cofinance is being strengthened within the context of the Latin American Investment Facility (LAIF) of the European Commission, where the IDB partners with European financial institutions (AECID, AFD, EIB, KfW, Nordic Investment Bank, OeEB, SIMEST, and SOFID).
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Consultation and Participation of Civil Society
• The IDB considers civil society organizations (CSOs) to be key actors in the development of the countries in the region.
• The IDB Group works with these organizations at several levels.
• At the operational level, the IDB and its borrowers consult with CSOs and affected populations during the project preparation and implementation stages.
• CSOs may also be eligible to receive financing from the Bank.
• At the policy level, different NGOs and interest groups reviews drafts of strategy and policy documents and submit comments
• Civil Society Consulting Groups have been established in all 26 borrowing member countries. 02/05/10
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Procurement Opportunities
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Foreign government procurement markets are worth hundreds of billions of dollars annually & offer important potential opportunities for IDB member country exporters and consultants.
Procurement on IDB-funded projects in 2009 = 1,908 contracts for a total value of US$ 3,2 billion
An international reference
As consultant/provider of services – Why Procurement is important?
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Project Cycle and Procurement Process
Identification Preparatio
n Analysis Approval
Execution and Supervision
6 Months4-8 Years
PROJECTOUTLINE
PROCUREMENTARRANGEMENTS
AND PROCUREMENTPLAN
Project ReportProject Concept Document
Programming
ProcurementProcess
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• Procurement contracts with Executing Agencies in projects financed by the IDB
• Goods & Works• Consulting Services
• Procurement contracts with the IDB • Consulting services for project
preparation, technical cooperation.
95%
5%
Procurement - Who are your counterparts?
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• Issue clear and balanced bidding documents
•Provide sufficient time for bidders to prepare bids
•Provide timely responses to bidders questions
•Evaluate bids based only on criteria established in bidding documents
•Award the procurement contract•Communicate results to all parties
•Address complaints promptly and fairly
• Issue clear and balanced bidding documents •Provide sufficient time for bidders to prepare bids•Provide timely responses to bidders questions•Evaluate bids based only on criteria established in bidding documents•Award the procurement contract•Communicate results to all parties•Address complaints promptly and fairly
Procurement - Responsibilities
•Carefully analyze ALL requirements of the bidding documents or request for proposal documents
•Strictly comply with the instructions and specifications-terms of reference in the bidding/request for proposals documents
•Require clarifications to documents in writing
•Review bid/proposal for compliance with the requirements before submitting
•Submit bid/proposal with enough time to arrive before deadline
Bidder’s Responsibilities
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• United Nations Development Business online: US $550/ per year(www.devbusiness.com)
• IDB procurement portalFree (www.iadb.org/procurement)
Procurement - Where to find information and documents
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Once you are on the IDB’s
Internet Website, you can select
Businessesto go to the Procurement
Website.
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