Bonn, Germany— The Inter-American Development Bank Group, principally through its private-sector arm IDB Invest, and the Department for Business, Energy and Industrial Strategy of the UK (BEIS) announced today they are partnering to create the UK Sustainable Infrastructure Program (SIP). The announcement was made during a joint side event in the context of the COP 23 climate conference in Bonn, Germany.
BEIS is expected to make an initial contribution of approximately £177 million to the program, which constitutes the largest partnership effort of the IDB Group and the Government of the UK in Latin America and the Caribbean. SIP will support IDB Group efforts to accelerate sustainable infrastructure development in the region by catalyzing private sector investment for the implementation of the Nationally Determined Contributions (NDCs) of the Paris Agreement.
“Infrastructure is crucial to economic growth and development, but there is an infrastructure investment gap in the region that needs to be closed,” said IDB President Luis Alberto Moreno. “We welcome this partnership as an excellent example of how to mobilize resources to finance infrastructure that is sustainable, low carbon and climate resilient.”
An innovative aspect of the SIP is that can provide a wide range of instruments — including grants for technical cooperation and blended finance for loans, equity and guarantees — to fully address barriers to private investment, and respond flexibly to borrowing countries’ priorities and needs.
Claire Perry, UK Minister of State for Climate Change and Industry in a recorded address said:
“I’m pleased to announce the UK’s latest climate finance funding commitment through a £177 million investment into the new UK Sustainable Infrastructure Program in Latin America. This will be delivered by our partners at the Inter-American Development Bank with the UK fund spending bilaterally in Brazil, Colombia, Mexico and Peru – four countries with big ambitions on climate action.
My colleagues in Latin America have made great strides in meeting their ambitious NDC commitments, and I am proud of the work that the UK has undertaken to support them to achieve this.”
About the Inter-American Development Bank
The Inter-American Development Bank is a leading source of long-term financing for economic, social and institutional projects in Latin America and the Caribbean. Besides loans, grants and guarantees, the IDB conducts cutting-edge research to offer innovative and sustainable solutions to our region’s most pressing challenges. Founded in 1959 to help accelerate progress in its developing member countries, the IDB continues to work every day to improve lives.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.6 billion under management and 330 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About the Department for Business, Energy and Industrial Strategy of the UK
The department brings together responsibility for government policy for business, industrial strategy, science, innovation, energy, and climate change in the UK.
- John Ferriter