• U.S. government and IDB finalize three new agreements to boost programs on migration, private-sector investments in infrastructure, and biodiversity.

The Inter-American Development Bank Group (IDB Group) and the U.S. government deepened their cooperation in Latin America and the Caribbean with three new agreements in the areas of migration, preservation of biodiversity, and facilitation of private-sector investment in infrastructure.

The agreements were announced on November 3 during the Americas Partnership for Economic Prosperity (APEP) Leaders’ Summit in Washington, D.C.

“Today's announcements showcase our commitment to the goals of the Americas Partnership for Economic Prosperity to tackle economic inequality and foster regional economic integration,” said IDB President Ilan Goldfajn. “They deepen the ties between the United States and the region by focusing on critical development areas, such as migration, natural capital, and private-sector investments in sustainable infrastructure. Regional integration is the path forward. Latin America and the Caribbean needs more of the U.S. and the U.S. needs more of the region for sustainable and inclusive growth.” 
 

Migration fund contribution 

The U.S. government pledged a new contribution of $25 million to the IDB’s efforts to support countries in addressing current migration challenges in the region. This contribution, along with funds from Canada, Korea and Spain, and matching funds from the IDB’s Ordinary Capital, total $89 million in additional resources available to help transform the challenges of migration into opportunities. This includes better integrating migrants into their communities by providing training and jobs and generally promoting development in the region.

To address the scale and extent of the development challenges posed by migration in Latin America and the Caribbean, the IDB’s governors approved the use of up to $100 million from the Bank's Grant Facility in May 2019 and renewed this commitment in November 2022, approving another $100 million in an arrangement to match resources and donations.

Grant resources will leverage investment operations to address the challenges of countries receiving large and sudden migration flows, allowing migrants to access registration and documentation, basic and social services, and economic opportunities.

Since 2019, the IDB has approved 18 operations and 34 technical-cooperation grant projects in 12 countries related to migration. This financial and operational support totals an investment of approximately $1.3 billion in approved operations to promote the development of host communities and migrant populations. In addition, the IDB has generated knowledge and databases to help inform future policies and programs, and launched a Migration Perception Observatory.

IDB Invest and the DFC

IDB Invest, the IDB Group’s private-sector arm, and the U.S. International Development Finance Corporation (DFC) have signed a framework to establish the Americas Partnership Platform. The Platform aims to leverage the individual strengths of the institutions to finance large-scale strategic infrastructure projects in Latin America and the Caribbean. 

Today, the region has a $2.2 trillion infrastructure gap. The two sides will aim to facilitate financing processes to provide clients with a seamless structure, helping unlock increased investments and more private capital. 

The Platform will help meet demand for increased financing for high-quality infrastructure through greater information sharing and coordination between the institutions on matters such as due diligence and engagement with clients, facilitating potential co-investment opportunities. The Platform will also better enable the institutions to work together to source new projects.  

Biodiversity and Nature-Based Solutions Grant Facility

The U.S. government also announced a $10 million contribution to the IDB’s Biodiversity and Nature-Based Solutions Grant Facility. This initiative is fully aligned with the priorities of countries in Latin America and the Caribbean, which hold approximately 40% of the world’s biodiversity. The contribution helps address global challenges, provides cost-effective CO2 mitigation, and supports climate resilience and conservation and restoration goals.

The collaboration aims to integrate nature considerations into economic, policy and investment frameworks.

The IDB has ongoing projects on biodiversity and natural capital in all APEP countries in Latin America and the Caribbean except Mexico, where work is in the planning stages. 

The IDB supports countries in the region through varied biodiversity projects, from debt-for-nature conversions in Ecuador and Barbados to nature-based solutions in Panama and the Dominican Republic. The Bank is working on mainstreaming biodiversity and natural capital accounting into all of its projects, and its Natural Capital Lab fosters innovative approaches to biodiversity conservation and sustainable development in the region.  In addition to the latest contribution by the United States, the Lab has received funding from France, the United Kingdom, and Canada, among other countries.