COOPERATION WITH OTHER SOURCES OF FINANCING
General
The President of the Bank, or such representative as he shall designate,
is authorized, in the name and on behalf of the Bank, to sign such agreements
as may be necessary with the European Economic Community (EEC), the
International Agricultural Development Fund (IFAD), and the Special
Fund of the Organization of Petroleum Exporting Countries (OPEC), for
the participation of the Bank in the technical analysis and administration
of financing which are made by such agencies to developing member countries
of the Bank for the purpose of cooperating in the execution of social
and economic projects.
Such agreements would generally include any understanding designed
to obtain additional funding be it on a regular basis for certain types
of operations, or, on a onetime basis, for specific operations.
This policy does not cover parallel financing arrangements worked out
directly between financing sources and borrowers for projects or programs
also financed by the Bank.
Basic Guidelines
The following general criteria are presented to guide the process and
terms of negotiating agreements with sources such as those named above
or any other institutions or countries that wish to contribute financial
resources to help meet Latin America's development needs.
NATURE AND PURPOSE OF AGREEMENT. The Bank may enter into cooperation
agreements with public agencies for the execution of lending, financing
and/or technical cooperation projects in borrowing member countries,
in the following categories:
a) Cofinancing agreements, whereby the Bank would furnish part of the
resources needed by the project and assume the responsibility for the
analysis and supervision of the project, as well as the administration
of the joint financing.
b) Technical collaboration agreements, whereby the Bank would simply
supply the other entity with projects already appraised out of its own
pipeline; or would conduct the evaluation of projects presented by the
other party; and/or would perform technical monitoring during execution
of the project.
c) Agreements for administration of financing granted by a cooperating
agency for the execution of projects or the financing of companies,
in either of which the Bank does not participate financially but in
which it might be participating with funds under administration. Such
projects or equity financing must either have been evaluated by the
Bank or be acceptable to it when the evaluation has been made by another
institution and require the express approval by the Board of Executive
Directors.
Any cooperation agreement in which the BANK PARTICIPATES shall
stipulate that such agreements must follow the basic policy, procedures
and conditions applied by the IDB to the evaluation, granting and administration
of its loans and technical assistance.
PROJECT ELIGIBILITY criteria should in general be established
in the pertinent agreements. Projects will be selected pursuant to those
criteria on the basis of periodic consultation between the parties to
discuss and review the information available.
The COOPERATING AGENCY shall contribute its resources as a donation
or on financial terms and conditions determining the interest rates,
service fees and grace and amortization periods that are no less advantageous
to the borrower than those set by the Bank for borrowers from its cofinancing
funds, nor less advantageous than those it would grant, if it were financing
with its own resources those projects in which it agreed to intervene
without any commitment with regard to financing.
The agreements shall establish no restrictions with regard to PROCUREMENT
OF GOODS AND SERVICES, so that the borrower may use the resources
of the loan to make purchases in any country, pursuant to the eligibility
criteria and procedures of the Bank. However, in the case of resources
contributed by multilateral entities or groups of countries for the
financing of operations on more favorable terms than those granted by
the Bank with its FSO resources, preferential treatment with regard
to procurement may be given to the countries specified as eligible by
the contributors. In the case of a single contributing country, however,
it would not be considered acceptable to restrict eligibility for procurement
exclusively to that country and to the beneficiary.
The Bank will be entitled, as a minimum, to REIMBURSEMENT OF ANY
EXPENSES incurred as a result of its participation in any cooperation
agreement, in addition to the remuneration it may obtain for its services.
In both cases, the calculation and collection procedures shall be determined
by agreement between the parties.
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Prevailing Reference Documents: GN-1340, January 1980 to GN-1340-4,
November 1980.
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The operational policies of the Inter-American Development Bank are
intended to provide operational guidance to staff in assisting the Bank's
borrowing member countries. Over the course of the Bank's more than 40 years of
operations, the approach to developing operational policies has taken
various forms, ranging from the preparation of detailed guidelines to
broad statements of principle and intent. Many policies have not been
updated since they were originally issued, and a few reflect emphases
and approaches of earlier years which have been superseded by specific
mandates of the Bank's Governors, the most recent being the
Eighth Replenishment mandates of 1994.
In
accordance with the Bank's information disclosure policy, the Bank is
making all of its operational policies available to the public through
the Public Information Center. Users please note that the Bank's operational
policies are under a process of continuous review. This review process
includes preparation of best practice papers summarizing experience
at the Bank and other similar institutions, and sector strategy papers.
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2007 Inter-American Development Bank. All rights reserved. Terms
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