TOKYO, CMC – The Inter-American Development Bank (IDD) says IDB Invest, its private-sector arm, and the Japan International Cooperation Agency (JICA) have announced a US$1 billion contribution from JICA to establish the JICA Trust Fund Achieving Development of Latin America and the Caribbean (TADAC).
The IDB, a Washington-based financial institution, said this landmark initiative – the agency’s first private-sector fund with the IDB and its largest private-sector Fund in Latin America and the Caribbean – “aims to catalyze greater private investment by co-financing projects that drive sustainable growth.”
As Latin America and the Caribbean (LAC) face a growing financing gap, the IDB said IDB Invest is “adopting an ‘originate-to-share’ business model, emphasizing collaboration and co-financing with other development institutions to mobilize private investment and maximize capital efficiency.
“The TADAC Fund will further strengthen these efforts,” the IDB said.
In this context, it said the TADAC Fund will provide IDB Invest with additional resources, streamline co-financing with JICA by reducing duplication, and leverage IDB Invest’s expertise.
Additionally, subject to mutual agreement, the IDB said the Fund can expand to US$1.5 billion after three years.
The IDB said the TADAC Fund aligns with IDBImpact+, a new approach that unifies the work of the IDB, IDB Invest, and IDB Lab with one goal: “to increase our impact and scale while enabling private sector investments, promoting innovation, and increasing the financing capacity of IDB Invest.”
“This $1 billion fund represents a historic milestone in our ongoing partnership with JICA – the agency’s first private-sector fund with the IDB and its largest private-sector fund in Latin America and the Caribbean,” said IDB President Ilan Goldfajn.
“By leveraging our combined resources and expertise, we are poised to drive transformative change across Latin America and the Caribbean,” it added. “This initiative will not only catalyze private investment but also foster sustainable development, innovation, and economic growth in the region.”
Dr. Akihiko Tanaka, president of JICA, emphasized the importance of this collaboration, stating that “JICA is committed to supporting private-sector efforts to solve the deep-rooted social issues in Latin America and the Caribbean.
“This investment in partnership with IDB Invest will contribute to closing the financial gap to achieve the regional SDGs,” he said.
The IDB said TADAC’s creation marks a new milestone in the collaboration between the IDB and JICA.
For over 40 years, the IDB said JICA has been “a trusted partner” in Latin America and the Caribbean, becoming the IDB’s largest bilateral aid agency.
The IDB said that in 2011, the two organizations formalized their partnership through a co-financing agreement, which later evolved into the Cooperation for Economic Recovery and Social Inclusion (CORE) framework.
In 2024, the IDB said JICA expanded CORE’s funding to US$4 billion, significantly increasing resources for co-financing and co-investment in key areas, such as quality infrastructure, disaster risk reduction, universal health coverage, poverty alleviation, and climate mitigation.
The IDB said JICA has strengthened its collaboration with IDB Invest and IDB Lab through the CORE framework.
For example, it said JICA and IDB Invest co-invested over US$20 million in Dr. Consulta, a Brazilian health-tech company, marking JICA’s first equity investment in Latin America and the Caribbean.
Additionally, the IDB said JICA partnered with IDB Lab on the TSUBASA Program, which supports Japanese startups tackling regional development challenges.
and then  says IDB Invest, its private-sector arm, and the Japan International Cooperation Agency (JICA) have announced){kind=link}