Economic growth in Latin America and the Caribbean is creating a burgeoning need for infrastructure development to help facilitate the free movement of people, goods, and services. It also dictates a need for more and better access to electric energy from clean, renewable sources.
The IIC has been a pioneer in the structuring and financing of private-sector projects in Latin America and the Caribbean. Included among the many projects the IIC has financed over the past 20 years are telecommunications networks, airport and port terminals, and hydroelectric, wind, thermal, and biomass power plants. Thanks to its extensive experience in Latin America and the Caribbean, the IIC is able to offer a wide range of project finance products with extremely flexible financing options, including:
Terms of up to 15 years, with payment schedules tailored to project needs;
- Competitive fixed or variable interest rates;
- Subordinated debt/quasi-equity instruments, where appropriate;
- Mobilization of resources from other financial institutions, including commercial banks and multilateral agencies;
Support for improvements in corporate, financial, and environmental governance through access to technical assistance funds from donor countries managed directly by the IIC and the IDB Group, which can be used for conducting feasibility studies, engaging independent engineers to oversee project implementation, and procuring consulting services to obtain carbon credits.
The IIC finances economically feasible projects with a positive impact on regional development and, preferably, on the environment. The following information is generally required for project appraisal purposes:
- General project description;
- Financial plan and projections;
- Business model and market strategy;
- Key estimates from and pre-contractual arrangements with the main contractors under consideration;
- Detailed information on project sponsors (e.g., experience and track record);
- Description of the project design and related infrastructure;
- Technical specifications for major items of equipment, accompanied by an investment cost breakdown;
- List of existing studies and update on their status;
- List of required permits and update on their status.
As a multilateral institution, the IIC has an environmental and labor review procedure requiring that all funded projects be socially responsible, with environmental practices meeting international standards.