The Inter-American Development Bank (IDB) today launched “BID FOR THE AMERICAS,” a new program to strengthen and grow economic ties between the United States, and Latin America and the Caribbean. As the largest source of multilateral finance in the region, the IDB’s program will focus on three pillars: public procurement, trade and investment, and financing.
The launch featured special addresses from high-level government and private sector leaders, including Senator Chris Dodd, Special Presidential Advisor for the Americas, Don Graves, U.S. Deputy Secretary of Commerce, Suzanne Clark, President and CEO of the U.S. Chamber of Commerce, and senior representatives from Intel, Amazon, and SBA Communications.
“The U.S. is a critical partner in our efforts to increase development impact and scale in Latin America and the Caribbean,” said IDB President Ilan Goldfajn. “BID FOR THE AMERICAS will give U.S. businesses a unique platform that leverages innovative technologies and financial tools to expand in Latin America and the Caribbean. The IDB’s experience, networks, and commitment to transparency, equality, governance, and sustainability make it the pre-eminent partner of choice for international business engagement with the region. We are the Banco Interamericano de Desarrollo—the ‘BID’—which is why today we are launching ‘BID for the Americas.’”
“The IDB and the U.S Chamber of Commerce have a long history of successfully advancing public-private partnerships,” said Suzanne Clark, of the U.S. Chamber of Commerce. “BID for the Americas will boost trade by educating investors and exporters and fostering new partnerships across the region. For countries across Latin America and the Caribbean, it will bring the promise of increased American investment and ingenuity. We look forward to taking this initiative on the road, both in the U.S. and across the Americas, to engage our partners and spur private-sector investment and trade across the hemisphere.”
On the public procurement pillar, the program is designed to help increase the participation of U.S. firms in over US$4 billion of government contracts financed by IDB in the region every year. The program will focus on increasing the scope and size of U.S. procurement in the health, water, energy, transport, agriculture, and digital infrastructure sectors. While U.S. firms win over 61% of all the IDB-financed contracts that they bid for—the highest success rate out of all non-borrowing member countries—they are less likely to bid for large contracts. The average contract size for U.S. firms in the infrastructure sector is US$282,000, while for Spain, for instance, it is US$4,700,000.
To increase such U.S. participation, the IDB will:
- Organize U.S. state-level IDB roadshows to raise awareness and facilitate connections between U.S. and Latin American and Caribbean firms;
- Launch three mobile apps (Build the Americas, currently in testing phase, and Consult4theAmericas and Code4theAmericas to be developed in 2024) where infrastructure developers, tech developers and consulting firms can obtain real-time information about IDB-funded procurement, connect with local partners and suppliers, download all bid documents, and apply for these procurement opportunities;
- Partner with the U.S. Chamber of Commerce and other business organizations to raise awareness about business opportunities with IDB and the region;
- Develop a dedicated U.S. section within ConnectAmericas.com, the IDB’s business B2B social network, where U.S. firms can access information about all IDB funded procurement.
On the trade and investment pillar, the IDB will leverage its expertise and network to facilitate business connections and partnerships between U.S. and regional firms. The U.S. currently exports more than $720 billion in goods and services to the region (20% more than U.S. exports to the European Union and three times what it exports to China). Also, the U.S. accounted for 38% of total FDI in the region in 2022, and over a quarter of multinational companies and affiliates doing business in the region.
To further grow these economic ties, IDB will organize business matchmaking and networking activities as part of its business fora to connect businesses from the US and the region. In 2024, IDB will also launch InvestAmericas, a tech tool to connect investors (angel, VC and Private Equity) with investment opportunities (start-ups, and businesses with particular focus on SMEs).
IDB will also expand existing support for U.S. companies through public sector loans designed to increase trade and investment. For example, in Uruguay and Chile, the IDB’s loans in the global digital services sector have enabled local governments to help almost 30 U.S. firms seeking to invest in the country. To this end, IDB will leverage longstanding and successful working relations with the region’s trade and investment promotion agencies.
Through its Americas Business Dialogue, the private sector-led policy advocacy mechanism, IDB will continue to foster high-level exchange between governments and the private sector of the Americas on policies that address investment environment constraints and promote sustainable and inclusive economic growth.
On the financing pillar, the IDB will mobilize resources from its public and private windows to support projects that involve U.S. companies.
IDB Invest, the IDB Group’s dedicated private sector arm which already finances over $9 billion of private sector projects, and IDB LAB, focused on servicing early-stage entrepreneurial innovations, will make special efforts to reach out to US companies and US-based entrepreneurs interested in expanding to Latin America and the Caribbean. IDB Invest is in the process of preparing a proposal for a new capital increase with the purpose of scaling impact in the region. With a new business model, IDB Invest will create opportunities for U.S.-based companies and other investors who want to engage in projects in the region.
The IDB will also organize networking activities with co-financing partners and investors, as well as relevant U.S. Government Institutions to promote investment opportunities in future IDB and IDB Invest bond issuances, and other innovative investment opportunities developed with borrowing member countries, such as debt-for-nature bonds, blue bonds, social bonds, and others.
Through its Office of Outreach and Partnerships, IDB will develop new initiatives with public sector partners in the U.S., such as DFC, the Ex-Im Bank, USAID, the Small Business Administration, the Department of Commerce and the U.S. Trade Development Agency, among others.
