The Inter-American Development Bank provides funding to its borrowing member countries through a broad range of loans and development programs. The current pipeline comprises 198 sovereign guarantee projects worth more than 16 billion USD. Here is the latest overview of IADB projects in the pipeline for 2019.
Funding by sector
The reform/modernization of the state sector in Latin America and the Caribbean is planned to receive the highest investment of all sectors, specifically more than 2 billion USD. This is followed by the financial markets sector with an investment of 1.6 billion USD and the transport sector with a planned investment of almost 1.4 billion USD. Funding of around 900 million USD will be directed to each of the social investment and water and sanitation sectors.
Funding by country
With regard to the distribution of funding by country, out of the total planned investment of 10 billion USD, the biggest investments will go to Argentina which has a current portfolio encompassing 54 operations and 2.8 billion USD. For regional, projects IADB has reserved 1.2 billion USD. Besides Argentina, in the top five countries due to receive the most investment are Mexico with 600 million USD and Haiti, Costa Rica and Brazil with an average of 500 million USD each.
Projects receiving the highest funding
The highest value project due to be announced by IADB is the regional project, Financing and Risk Mitigation Program for Strategic Investments in the Northern Triangle’s countries. With an investment of 750 million USD, the program is aimed at mobilizing public and private resources by supporting the Infrastructure and Prosperity Funds and increasing the financing available for infrastructure projects and strategic sectors in the Northern Triangle.
The Program to Strengthen Fiscal Management in States and Municipios II, a project worth 600 million USD, will be announced in Mexico. The objective of this programmatic series and the first operation is to improve fiscal management in federative entities and municipalities, in order to strengthen their fiscal sustainability. This will be achieved through the implementation of a new financial discipline framework, increased transparency and accountability and by building institutional capacity in federative entities and municipalities for the implementation of measures in these areas. This operation is the second in a programmatic policy-based loan (PBP) series to be comprised of two contractually independent, but technically, linked loans.
The Argentinian financial markets sector will receive a boost with a project worth 490 million USD following IADB’s objective to contribute to the promotion of private participation in projects that are part of the Highways and Safe Roads (RARS – Red de Autopistas y Rutas Seguras) State I program. The Partial Credit Guarantee for Investment Projects under the Program of Support for the Financing of Productive Infrastructure in Argentina is set to mitigate the risks that inhibit private financing for productive development.
Last, but not least, is the Federal Program for Regional Transport Infrastructure project with a 300 million USD budget, due to unfold in Argentina. The project’s general objective is to contribute to fostering productivity in Argentina’s provinces by investing in road infrastructure.
Background
This overview of the current IADB projects pipeline comprises the latest updates published by the bank in June 2019. The information presented is subject to change since the mentioned IADB projects have yet to be approved by the Bank’s Board of Directors.
For more information, visit: www.developmentaid.org
