IIC Signs Equity Investment Agreement For Financing Small And Medium-Size Infrastructure Projects In Latin America And The Caribbean


SANTIAGO, CHILE - The Inter-American Investment Corporation (IIC)1 signed an agreement for a $10 million equity investment in the to-be-created Inter-American Corporation for Infrastructure Finance (ICIF). The signing ceremony took place in the Mapocho Station Cultural Center, where the Forty-second Annual Meeting of the Board of Governors of the Inter-American Development Bank and Sixteenth Annual Meeting of the Board of Governors of the Inter-American Investment Corporation are taking place from 19 to 21 March 2001. The agreement was signed by the following representatives of ICIF's founding partners: Mr. Enrique Iglesias, Chairman of the Board of Executive Directors of the IIC; Mr. Miguel Blesa de la Parra, President of Caja de Ahorros y Monte de Piedad de Madrid; Mr. Eduardo J. Escasany, President of Banco de Galicia y Buenos Aires S.A.; Mr. João Manuel Rodriguez Martins, Administrator of Caixa Geral de Depósitos, S.A.; Mr. Sergio Zappa, Executive Director of Unibanco S.A.; and Ronald Harford, President de Republic Finance and Merchant Bank.

The ICIF project involves setting up an institution for funding small and medium-size infrastructure projects in Latin America and the Caribbean that will enable additional funding to be channeled from private sources outside the region. In addition to funding projects, ICIF will provide financial consultancy services and envisages setting up a fund that would use its resources for carrying out social projects in the region.

The new entity is the result of the efforts of Caja Madrid and the IIC to provide funding to small and medium-size infrastructure projects in the region. IIC's participation in this initiative helped to attract the participation of public and private financial institutions, including Banco de Galicia y Buenos Aires (Argentina), Caixa Geral de Depósitos (Portugal), the Caribbean Development Bank, the Central American Bank for Economic Integration, Republic Finance and Merchant Bank (Trinidad and Tobago), and Unibanco (Brazil).

During ICIF's first five years of operations, approximately 110 small and medium-size projects will be financed in the infrastructure sector, helping to alleviate unmet needs for infrastructure investment in Latin America and the Caribbean. Some of the projects that will benefit from ICIF's financial support will be in the subsectors of home building; building, renovating, expanding, and maintaining airports, roads, bridges, railroads, canals, ports, and the power grid; as well as the environment, petrochemical infrastructure, telecommunications, water treatment and sanitation, and tourism.

1 The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. The IIC has thirty-seven member countries: twenty-six in Latin America and the Caribbean and eight in Europe, plus the United States, Japan, and Israel. For further information on IIC's activities, please visit our Web site (www.iadb.org/iic) or contact Mr. Jorge Roldán at 202-623-3948.

Contact: Jorge Roldán

Telephone: (202) 623-3948

Email: jorgero@iadb.org