Funding Organization: IDB Infrastructure Fund (InfraFund)

PROFILE

Total Amount USD 20 Million
Financing Mechanisms Technical assistance
Qualifying Projects Adaptation , Capacity Building , Mitigation, Energy , Energy Efficiency , Fuel Switching , Infrastructures , Low-Carbon , Renewable Energy , Sustainable Land Management , Tourism , Transport , Urban , Waste Management
Eligibility Maximum financed: USD 1,500,000. A fast approval mechanism is in place for projects smaller that USD 500,000.
Eligible beneficiaries: Regional, national, and sub-national proposals by public, mixed-capital and private entities from all IDB member countries are eligible for InfraFund support. Beneficiary entities must demonstrate the ability to carry out the works.
Letter of Non-Objection: A letter on non-objection is required from the government.
Counterpart financing: 20% counterpart financing is required.

Funding Objectives

All activities must be consistent with the fundamental objective of the IDB InfraFund which is to assist public and private entities in Latin America and the Caribbean with identifying, developing and preparing bankable and sustainable infrastructure projects that have high probability of reaching financial closing. Other key goals are to help mobilize private financing for sustainable infrastructure projects in Latin America and the Caribbean and to help develop and structure sustainable public-private partnerships in the region.

Financing Mechanisms

IDB’s InfraFund financing mechanisms are broken down in two main groups:

Non-reimbursable

  • Preparation of specific projects to be financed by the IDB
  • Preparatory activities for promoting investment in infrastructure (not specifically related to a project)

Contingent recovery (Funds will be recovered if and when the project formalizes its financing)

  • Preparation of specific projects that do not envision IDB financing
  • Financial structuring and rating of project proposals

Application Procedures

An expression of interest form is available online at www.iadb.org/infrafund. Once submitted, the application is reviewed by an IDB expert who will assure specific basic technical requirements are met. Shortly after an application is received, the corresponding Bank’s Country Office(s) is notified about the interest of developing a project in its jurisdiction. Proposals are then discussed by an internal Committee composed by IDB technical and financial experts, and a decision is submitted to the client.

Project Types

Mitigation: InfraFund finances: (i) pre-feasibility and feasibility studies for the preparation of renewable energy projects; (ii) pre-feasibility and feasibility studies of sustainable transportation projects.

Adaptation: InfraFund finances: (i) pre-feasibility and feasibility studies of clean energy projects.

Capacity Building: InfraFund finances capacity building initiatives related to climate change.

Decision-making structure

The InfraFund is coordinated by the InfraFund Coordinator. In order to grant eligibility to a proposal the InfraFund Coordinator receives input from other IDB technical departments, from country coordinators and budget officers.