WASHINGTON – The Inter-American Development Bank (IDB) has approved the “IDB for Cities and Regions” initiative, a pioneering five-year pilot that will enable eligible cities, states, and regions in Latin America and the Caribbean to access a financing line of up to $1 billion in investment loans and guarantees directly from the IDB. It will provide local governments with direct access to financing for infrastructure, urban development, and delivery of services to promote sustainable growth.
In addition to financing, the program aims to strengthen the development capacity and creditworthiness of subnational governments across the region through its in-house expertise and complementary technical assistance.
“The program is an important addition to the toolkit of the Bank’s development financing. By providing direct access to financing, and strengthening their institutional capacity, we are equipping subnational governments with the tools they need to lead transformative development in their own communities,” said IDB President Ilan Goldfajn.
”IDB for Cities and Regions” has two complementary subprograms:
- A $1 billion investment financing window for eligible subnational governments to fund urban infrastructure and service-delivery projects.
- A technical facility to support institutional reforms, capacity building, and project design and preparation.
The pilot phase seeks to approve approximately 10 individual operations. Eligible projects, conditioned to compliance with national legal and fiscal frameworks, must demonstrate high development impact, have potential to attract private-sector financing, and contribute to improved efficiency and effectiveness in local governance.
The initiative will also support private-sector financing to subnational entities that have limited access to capital markets. The IDB’s involvement aims to spark investors’ interest through continued support, providing technical assistance and oversight throughout the project's life cycle, ensuring rigorous standards, robust risk management, transparency, and accountability.
“The IDB, leveraging its long experience with local governments, aims to be a truly private-sector-focused development bank, not only by directly funding more private-sector projects through IDB Invest, but by strengthening the enabling conditions for the private sector to invest,” added Goldfajn.
About the IDB Group
The Inter-American Development Bank Group (IDB Group) is the leading source of financing and knowledge for improving lives in Latin America and the Caribbean. It comprises the IDB, which works with the region’s public sector and enables the private sector; IDB Invest, which directly supports private companies and projects; and IDB Lab, which spurs entrepreneurial innovation.
Borges De Padua Goulart,Janaina
