WASHINGTON (CMC) – The Inter-American Development Bank (IDB) has launched a new initiative aimed at strengthening and consolidating the economic ties between the United States and Latin America and the Caribbean.

The IDB, as the largest source of multilateral financing in the region, said the “Bid for the Americas” initiative will focus on three pillars, namely public procurement, trade and investment, and financing.

“The US is a critical partner in our efforts to increase development impact and scale in Latin America and the Caribbean,” said IDB President Ilan Goldfajn.

He said the new initiative will give US 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 preeminent partner of choice for international business engagement with the region. We are the Banco Interamericano de Desarrollo—the ‘BID’—which is why we are launching ‘Bid for the Americas,” he added.

Suzanne Clark of the US Chamber of Commerce, said the IDB and the chamber have a long history of successfully advancing public-private partnerships.

“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 US and across the Americas, to engage our partners and spur private-sector investment and trade across the hemisphere,” she said.

The Washington-based financial institution said that in the public procurement pillar, the programme is designed to help increase the participation of US firms in over four billion dollars of government contracts financed by IDB in the region every year.

It said the programme will focus on increasing the scope and size of US procurement in the health, water, energy, transport, agriculture, and digital infrastructure sectors.

“While US firms win over 61 per cent 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 US firms in the infrastructure sector is $282,000, while for Spain, for instance, it is $4,700,000,” the IDB said.

It said to increase such US participation, the IDB wil organize US state-level IDB roadshows to raise awareness and facilitate connections between U.S. and Latin American and Caribbean firms.

It will also 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;

In addition, it will partner with the US Chamber of Commerce and other business organizations to raise awareness about business opportunities with IDB and the region;

The IDB said it will also develop a dedicated US section within ConnectAmericas.com, the IDB’s business B2B social network, where US firms can access information about all IDB-funded procurement.

In the trade and investment pillar, the IDB said it will leverage its expertise and network to facilitate business connections and partnerships between US and regional firms.

The US currently exports more than US$720 billion in goods and services to the region, 20 per cent more than it exports to the European Union and three times what it exports to China.

Also, the US accounted for 38 per cent of total foreign direct investment (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, the IDB said it will organize business matchmaking and networking activities as part of its business fora to connect businesses from the US and the region.

In 2024, the 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).

The IDB said it will also expand existing support for US companies through public sector loans designed to increase trade and investment.

Through its Americas Business Dialogue, the private sector-led policy advocacy mechanism, the 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.

In the financing pillar, the IDB said it will mobilize resources from its public and private windows to support projects that involve US companies.

The IDB Invest, the IDB Group’s dedicated private-sector arm, which already finances over nine billion US dollars 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 said it will also organize networking activities with co-financing partners and investors, as well as relevant US 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 swaps, blue bonds, social bonds, and others.