Discusses the legal requirements/options for joint venture/licensing in this market.

Project Procurement
IDB procurement rules allow for the participation of joint ventures and consortia. And indeed the scale and complexity of many IDB funded public works projects provides fertile ground for bids by joint ventures and consortia of firms offering complementary capabilities.

IDB website states: “Any firm may bid independently or in joint venture confirming joint and several liabilities, either with domestic firms and/or with foreign firms, but the Bank does not accept conditions of bidding which require mandatory joint ventures or other forms of mandatory association between firms.”

That said each country has its own laws, rules, requirements and other considerations regarding joint ventures and licensing agreements. To learn about conditions in countries of interest to your firm see the “Joint Ventures/Licensing” section of each country’s Country Commercial Guide.

Corporate Procurement
The IDB Group contracts with consulting and advisory firms in the amount of approximately $75 million per year via the BEO Procurement system. While eligibility requirements do not explicitly exclude the participation of joint ventures, firms interested in participating in the form of a joint venture should consult the Policy for Selection of Firms to confirm how to register and remain eligible before competing for contracts.

Private Sector Solutions
IDB Invest invests (debt financing) in projects designed to create or expand upon private sector enterprises in developing countries. Joint venture arrangements are common in IDB Invest funded operations and can even include the IDB Invest itself as an equity investor.


 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.