IDB Rep in Chile: Bank places emphasis on renewable energy

September 30, 2014

Bank places emphasis on renewable energy

By Diario Financiero

Financing renewable energy projects –both conventional and non- conventional– will be the focus of the Inter-American Development Bank (IDB) in the coming years in Chile.

According to IDB Representative in Chile Koldo Echabarría, the country’s potential in the field makes ​​it an interesting market. “Chile has a very large potential for growth and development of Non-Conventional Renewable Energy (NCRE), which would help to relativize its dependence on foreign fossil fuel prices,” he said. In this sense, he stated that the focus will be on helping develop technologies where the country has clear advantages, such as solar and geothermal energy, and wind projects.


Last week, solar project Pozo Almonte (26.5 MW) was inaugurated by Spanish company Solar Pack. The IDB together with the Canadian  Climate Fund, provided almost half of the financing for US$40.7 million.

Patricia Fuller, Canadian ambassador to Chile, noted that her government has created this fund to promote the development of climate-friendly technologies. “The fund supports NCRE projects and is administered by the IDB to support projects that will reduce greenhouse gas emissions.”

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Learn more about the Canadian Climate Fund


Marcona and Tres Hermanas projects to add total of 132 MW of renewable capacity to national grid

September 25, 2014

Marcona and Tres Hermanas projects to add total of 132 MW of renewable capacity to national grid


The Inter-American Development Bank (IDB) announced the approval of loans of $23.2 million and $44.1 million to the Marcona and Tres Hermanas wind farm projects in the department of Nazca, south of Lima. The loans will provide long-term financing for two of the first commercial-scale wind power projects in Peru, leading to the displacement of an estimated 440,000 tons of CO2 emissions annually.

Together, the energy generated by the two farms is expected to produce a supply equivalent to meet the needs of an estimated 500,000 Peruvian consumers. Construction on the Marcona farm and associated facilities was completed in March of this year. Work on the Tres Hermanas site began in July and is expected to be completed in September 2015.

“The IDB’s financing of these two projects will send a strong signal to potential investors in Peru’s wind market,” noted Jean-Marc Aboussouan, chief of the Infrastructure Division in the Bank’s Structured and Corporate Finance Department. “Wind offers a complement to thermal and hydroelectric sources, which today account for 97% of the country’s energy matrix, and will serve as a seasonal complement to hydro in particular.”

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How Big Data Is Changing Big Business

September 12, 2014

How Big Data Is Changing Big Business

By Duncan Gromko

Did you know that every minute the world loses 50 soccer fields worth of forest? That’s one of the headline findings from recently published data on global deforestation. Access to deforestation data is making it increasingly easy for companies to monitor deforestation in their supply chains.

Deforestation is just one issue where big data is providing companies with more information about their environmental impact. Data service providers can also help companies become sustainable businesses by providing information about their carbon and water footprints.

Because of pressure from NGOs, a growing recognition of the link between deforestation and climate change, and a desire to become more sustainable, a number of companies have recently made commitments to reduce deforestation in their supply chains. Unilever, for example, announced that it would purchase soy, meat, palm oil, and pulp and paper from only sustainable sources. Cargill, one of the largest global agribusiness companies, committed to not buying palm oil from sources that cause deforestation. Although deforestation linked to palm oil production has traditionally been located in Southeast Asia, the crop is growing quickly in Latin America. Unilever’s, Cargill’s, and other companies’ commitments are key to slowing environmental degradation in our region.

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Photo credit: World Bank Photo Collection – Flickr

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Latin America set to play bigger role for Chinese firms

September 9, 2014

Latin America set to play bigger role for Chinese firms

By Mu Chen (China Daily)

Agriculture, telecommunications and tourism will continue to be the key investment areas for Chinese companies in Latin America and play a big role in boosting China’s ties with the region, leading industry experts said on Thursday.

Speaking at the sixth Latin America China Investment Forum organized by the Inter-American Development Bank in Beijing, Hans Schulz, vice-president of private sector and non-sovereign guaranteed operations at IDB, said China has stepped up the pace of its engagements, particularly in trade, resources procurement and asset diversification, during the past five years.

“The deep engagements are based on the profound belief that there exists a win-win situation with Latin America and the Caribbean. Though the engagements offer rich natural resources, they also provide a mature market with a growing middle-class population that can play a major role in the world economy,” Schulz said.

During President Xi Jinping’s visit to the region in July, he called for the use of trade, investment andfinancial links to push ahead comprehensive cooperation withLatinAmerica in six key areas: natural resources, infrastructure, agriculture, manufacturing, technological innovation and telecommunications. The government has set an investment target of $250 billion in Latin America in thenext 10 yearsfrom $80 billion at the endof 2013.

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Photo credit: Derell Licht - Flickr


China Insights Program: Do you speak the Chinese business language?

September 9, 2014

China Insights Program: Do you speak the Chinese business language?

Chinese business opportunities for Latin America and the Caribbean

By Gema Sacristán

Imagine for a second that you spend your free time designing clothes and you want to export to China. Where do you start? When I first asked myself this question, I had no idea. I realized how much we in the region talk about Chinese business opportunities for Latin America and the Caribbean  (LAC) but how little we actually know.

Much is talked about for a reason. During the last decade, LAC has been China’s most dynamic trading partner (in just one decade, China’s share of LAC trade has more than doubled to its current 20% and continues to grow). China is already the largest importer of goods from Brazil and Chile, and among the main importers for countries such as Mexico, Panama, Argentina and Colombia. Investment ties between both regions continue to multiply.

The little actually known is also for a reason. China´s way of doing business goes as far as the country´s past. That is thousands of years. China´s different dialects, business culture and social etiquette may pose a cultural Great Wall at first. For example, did you know that business cards need to be handed and received with both hands or that is preferable to leave food uneaten on a plate to refusing the dish?  Not to mention the inner workings of Chinese, financial, legal and regulatory systems differ greatly from those in LAC.

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Photo credit: David Dennis- Flickr


IDB Rep. Morgan Doyle: Insights on Managing a Family Business

September 2014

Morgan Doyle: Insights on Managing a Family Business

By Revista Líderes

The Inter-American Development Bank (IDB) organized a meeting in Quito about corporate governance with Ecuadorian companies such as Adelca, Endesa-Botrosa, Indurama, Industrias Ales, Pronaca, Vicunha Ecuador and Banco Atlantida. From this exchange, important concepts arise that are transmitted by the IDB Representative.

How complicated is it for a family business to incorporate corporate governance policies?

At the end of the day, it is a matter of conviction on the part of their owners.  It is not that it is inherently very complex, but human nature and inertia, in conjunction with the normal day to day of managing a business makes it not seen as a priority or urgent.

What should one keep in mind?

You have to differentiate what is the formal adoption of effective implementation processes; this latter can be complex as it requires implementing necessary changes. In this stage where companies often fail, good corporate governance will avoid potential future problems, as there are steps that can be adopted without difficulty which have proven very effective in supporting the survival of a company.

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Inf360 - example of worker on tower

IDB announces finalists for the 2015 Infrastructure 360° Awards

September 5, 2014

IDB announces finalists for the 2015 Infrastructure 360° Awards

12 selected from more than 40 submissions from Latin America and Caribbean countries


The Inter-American Development Bank announces the twelve finalists for the 2015 Infrastructure 360º Awards.

The IDB Private Sector Infrastructure Sustainability Awards, or the Infrastructure 360° Awards, seek to identify, assess and reward sustainable infrastructure investments made by the private sector and public-private partnerships in the IDB´s 26 borrowing member countries in Latin America and the Caribbean. The main objective of these second annual awards is to promote the integration of sustainability into planning, design, construction and operation of infrastructure projects. Eligible projects must have been under construction or in operation for no more than three years, have a total investment of $30 million or more, and have at least 50 percent of funding coming from the private sector.

“We are pleased to see an enthusiastic response to these awards from participants in the region two years in a row,” said Hans Schulz, Interim IDB Vice President for the Private Sector. “This demonstrates a growing commitment by regional infrastructure players to embed social and environmental sustainability in project design.”

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