News

ADB MIF Public-Private Partnership Program

June 7, 2013

 

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Implemented by the Inter-American Development Bank (IADB), this is a Public Private Partnership (PPP) Program under the GEF-5 Revised Strategy for Enhancing Engagement with the Private Sector (GEF C.41.09.Rev1).

This program will make targeted equity investments in funds to promote energy efficiency, renewable energy, and bio-diversity in Latin America. The investments will contribute to energy savings, new renewable energy supply, reduction of greenhouse gas (GHG) emissions, preservation of natural resources, protection of bio-diversity, and development of sustainable business models. Climate change and bio-diversity focal areas will be addressed.

 

The MIF-IDB has identified three leading funds for negotiation. Each fund has identified a pipeline of investments in Latin America that will address selected program goals and has already attracted significant private sector investment interest. The GEF funding will be used along with IDB funding and other investor funding to help projects get to close and begin implementation. GEF funding will earn substantial returns consistent with other partners, with returns expected to range from 13% up to 20%.
The requested GEF Grant of $15,000,000 will be co-financed with $266,250,000, a co-financing ratio of 1:17.75. The agency fee will be $1,200,000. The program employs a unique partnership with the Multilateral Investment Fund (MIF) of the IDB which will provide co-financing for all necessary technical assistance and project preparation.

Among the benefits from the investments over the project lifetime will include
·    At least 3 projects registered under UNFCCC and issuing Certified Emission Reductions
·    At least 7 million tons CO2-equivalent abated and 100 MW of new renewable energy capacity
·    Up to 1,400 jobs supported; up to $156 million in revenues generated
·    Preservation of over 6,000 hectares of land

As one of the first PPP Programs to access the GEF-5 Private Sector set-aside, this program will enhance private sector engagement in Latin America while generating reflows to the GEF Trust Fund and contributing to sustainable use of the private sector set-aside.

 

For more information, contact Rogerio Ramos, IADB/MIF, at ROGERIORA@iadb.org

 

Sources:

/gef/project_detail?projID=4959

http://bit.ly/15HM4w1