WASHINGTON, CMC – The Inter-American Development Bank Group (IDB Group) has signed three new agreements with the United States government to deepen their cooperation in Latin America and the Caribbean (LAC).
The IDB Group said that three new agreements are in migration, preservation of biodiversity, and facilitation of private-sector investment in infrastructure and were signed during last weekend’s Americas Partnership for Economic Prosperity (APEP) Leaders’ Summit here.
IDB President Ilan Goldfajn said the agreements showcase “our commitment to the goals of the Americas Partnership for Economic Prosperity to tackle economic inequality and foster regional economic integration.
“They deepen the ties between the United States and the region by focusing on critical development areas, such as migration, natural capital, and private-sector investments in sustainable infrastructure. Regional integration is the path forward. Latin America and the Caribbean need more of the U.S., and the U.S. needs more of the region for sustainable and inclusive growth,” he added.
Washington has also pledged a new contribution of US$25 million to the IDB’s efforts to support countries in addressing current migration challenges in the region.
The IDB Group said that this contribution, along with funds from Canada, Korea, and Spain, and matching funds from the IDB’s Ordinary Capital, total US$89 million in additional resources available to help transform migration challenges into opportunities.
It said this includes better-integrating migrants into their communities by providing training and jobs and generally promoting development in the region.
To address the scale and extent of the development challenges posed by migration in Latin America and the Caribbean, the IDB’s governors approved the use of up to US$100 million from the Bank’s Grant Facility in May 2019. They renewed this commitment in November 2022, agreeing to another 100 million to match resources and donations.
“Grant resources will leverage investment operations to address the challenges of countries receiving large and sudden migration flows, allowing migrants to access registration and documentation, basic and social services, and economic opportunities,” the Washington-based financial institution said.
It said since 2019, it has approved 18 operations and 34 technical-cooperation grant projects in 12 countries related to migration.
“This financial and operational support totals an investment of approximately US$1.3 billion in approved operations to promote the development of host communities and migrant populations. In addition, the IDB has generated knowledge and databases to help inform future policies and programs and launched a Migration Perception Observatory.”
IDB Invest, the IDB Group’s private-sector arm, and the U.S. International Development Finance Corporation (DFC) have signed a framework to establish the Americas Partnership Platform.
The Platform aims to leverage the individual strengths of the institutions to finance large-scale strategic infrastructure projects in Latin America and the Caribbean.
“Today, the region has a US$2.2 trillion infrastructure gap. The two sides will aim to facilitate financing processes to provide clients with a seamless structure, helping unlock increased investments and more private capital.
“The Platform will help meet the demand for increased financing for high-quality infrastructure through greater information sharing and coordination between the institutions on matters such as due diligence and engagement with clients, facilitating potential co-investment opportunities. The Platform will also better enable the institutions to collaborate to source new projects,” the IDB Group said.
Washington also announced a US$10 million contribution to the IDB’s Biodiversity and Nature-Based Solutions Grant Facility, and the IDB Group said this initiative is fully aligned with the priorities of countries in Latin America and the Caribbean, which hold approximately 40 percent of the world’s biodiversity.
“The contribution helps address global challenges, provides cost-effective CO2 mitigation, and supports climate resilience and conservation and restoration goals.,” it said, adding, “The collaboration aims to integrate nature considerations into economic, policy, and investment frameworks.”
The iDB said it has ongoing projects on biodiversity and natural capital in all APEP countries in Latin America and the Caribbean except Mexico, where work is in the planning stages.
“The IDB supports countries in the region through varied biodiversity projects, from debt-for-nature conversions in Ecuador and Barbados to nature-based solutions in Panama and the Dominican Republic.”
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