Transfers technical know-how to strengthen the capacity of entities in developing countries and requires repayment like a regular investment loan. Finances pre-investment activities or other loan preparation and execution activities. The provisions pertaining to loan operations will govern reimbursable TC operations.
Examples: Projects that support better implementation of policies or strengthen institutional capacity, financing pre-investment projects and promoting public-private partnerships.
Lending rate: SOFR base rate + IDB Ordinary Capital variable lending spread:
SOFR base rate is USD SOFR daily overnight compounded rate + IDB's funding margin. Funding margin for 1st quarter 2025 is 41 bps.
IDB’s Ordinary Capital lending spread - for 2025 is 80 bps.
Fees: Commitment fee 50 bps; applicable on undisbursed loan amount and starts to accrue 60 days after loan contract signature.
Interest and Currency conversion options are available.
For applicable loan charges and conversion option fees, please refer to www.iadb.org/rates
Flexible repayment options subject to a maximum maturity of 25 years, and maximum Weighted Average Life (WAL) of 15.25 years.
Standard Grace Period: 5.5 years.
Standard amortization schedule (semiannual, straight-line payments), bullet repayment structures, extended grace periods, uneven amortization schedules, and shorter repayment periods are available without additional cost.
Finance results of an existing or new government program
Loan Based on Results
(LBR)
Finance investments with defined objectives and scopes
Specific Investment Loans
(ESP)
Finance of a series of small independent investment projects
Multiple Works Loans
(GOM)
Combining financial instruments ensures timely funds, spreads risk, and optimizes resources for disaster recovery and climate resilience. This approach supports immediate response and long-term investment, creating a robust and sustainable financial strategy.
This program aimed to strengthen public-private partnerships (PPPs) in Colombia by developing a robust regulatory framework, enhancing institutional capacity, and supporting private participation in infrastructure projects. The initiative supported the structuring and implementation of PPPs, with 864 projects registered in the national PPP registry, including productive and social infrastructure sectors. It targeted better governance, increased investment efficiency, and long-term infrastructure development.
The program exceeded its targets, structuring 23 projects across productive and social infrastructure sectors and institutionalizing a dedicated PPP unit in Colombia’s National Planning Department (DNP). It also contributed to registering 864 PPP projects in the national registry. Private investment in infrastructure increased to 2.84% of GDP, surpassing the 2.1% target. Regulatory advancements included 11 approved norms and guidelines, enhancing Colombia’s PPP maturity. The program promoted knowledge transfer, training over 750 individuals and fostering long-term capacity building. It significantly improved Colombia’s score in the Infrascope index, ranking among the top-performing countries in Latin America.
The Suriname Business Climate and Innovation Program (SUBCIP) aimed to strengthen the country's economic competitiveness and promote private sector participation by implementing institutional reforms and supporting small and medium enterprises (SMEs). With a total funding of $20.7 million, the program introduced legislative and regulatory changes, established new institutions such as the Competitiveness Unit Suriname (CUS), and supported innovation initiatives, including the Pilot Fund for Innovation and the FabLab.
The program achieved significant milestones, including enacting eight pieces of legislation to streamline business regulations and improve governance. It supported the creation of 892 new firms annually, reducing the time to start a business from 204 days to 66 days. Intellectual property registrations increased by 10%, and the CUS strengthened public-private dialogue, enabling long-term collaboration on economic reforms. Innovation initiatives led to a 44% increase in firms introducing new products or services. The FabLab spin-offs and the Pilot Fund stimulated local entrepreneurship, directly supporting 16 innovation projects, 94% of which remained operational six months post-completion.