Representatives from the U.S.–based Inter-American Development Bank (IDB) and Overseas Private Investment Corp. (OPIC) have pledged to invest a combined $3 billion in development projects in Latin America and the Caribbean over the next five years, with the option of extending to $5 billion.
Luis Alberto Moreno, president and chairman of IDB Invest, and David Bohigian, acting president and CEO of OPIC, signed a memorandum of understanding at the 60th anniversary celebration of the IDB.
IDB Invest and OPIC aim to match this investment with additional capital of between $6 billion and $10 billion from the private sector.
“To achieve shared development goals in Latin America and the Caribbean, IDB Invest seeks solid partners like OPIC to jointly attract private investors, multiply our impact, and ultimately make our mark on the region’s development,” stated James Scriven, CEO of IDB Invest.
Bohigian added, "Meeting the vast development needs of Latin America and the Caribbean will require innovative thinking and strategies. By leveraging our toolkit and the regional expertise of IDB Invest, we can scale our impact and promote a private sector-led model that promises greater prosperity and stability throughout this critical region.”
OPIC will focus on projects such as transport, energy, water and sanitation, and social infrastructure, including health and education.
This announcement comes on the heels of OPIC’s preparation to transform into the U.S. International Development Finance Corp., which will be equipped with an investment cap of $60 billion.
