Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.

Project Procurement 
When the IDB lends money to a member country government for a project, the responsibility for the implementation of the project, including the award and administration of related contracts, rests with the borrower. Competing successfully thus depends on an ability to do business in the country in which the project will be conducted, and with the borrowing government that runs the competition. Further, the IDB relies heavily on “Country Procurement Systems for procurement that falls under the threshold of $25 million for International Competitive Bidding (ICB) for those systems that have been deemed consistent with IDB procurement standards. The IDB monitors all procurement on its projects.

Knowledge of the local language, culture, business practices, and other local conditions is essential. Tariffs, quotas, restricted or prohibited imports, temporary entry of goods, standards, testing and certification requirements, labeling requirements, pricing, and other elements of doing business vary country by country. Firms with a local presence, whether through a partner or representative, or their own branch office or subsidiary, tend to be able to position themselves more effectively to compete than firms that do not have such a presence. The vast majority of procurement and consulting work financed by the IDB Group directly is awarded to companies/firms that are located in the country where the work is to be done. This includes local offices of international firms as well as partners of international firms who agree to be the bidder of record as the “local entity”.

Firms that begin focusing on a project at the issuance of a procurement notice often find themselves at a competitive disadvantage. The project life cycle is long, often beginning years before the first procurement notice is ever issued. IDB and borrowing government officials seek input from stakeholders, including the private sector, throughout the project development process. Firms with the patience and persistence to engage over time enhance their competitiveness by understanding stakeholder interests, providing input, and preparing bids based on a full historical understanding of the origins, context and development of the project.

The IDB is a large institution with a specific corporate culture that requires firms to be flexible and patient when seeking information or pursuing opportunities. While located in Washington D.C., the majority of the employees of the bank, even in Headquarters, originate from outside the United States. Firms are encouraged to approach the Bank as they would a representative of the region, and not as they would approach USAID, MCC, or other D.C.-based economic development agencies.

Corporate Procurement
The IDB Group itself runs competitions for consulting and advisory services via the BEO Procurement system. As with Project Procurement (see above) firms that begin focusing on an opportunity once it appears on the portal often find themselves at a competitive disadvantage. IDB officials seek input from stakeholders, including the private sector, throughout the project development process. Firms with the patience and persistence to engage over time enhance their competitiveness by understanding stakeholder interests, providing input, and preparing bids based on a full historical understanding of the origins, context and development of the project.
 
Private Sector Financing
The IDB Invest lends to private firms on commercial terms. They are not subject to procurement rules and processes that govern public works projects. Approaching the IDB invest financing requires having a well-developed business plan, the ability to meet IDB invest standards related to corporate governance, economic development, environmental impacts, social welfare, and community engagement. The IDB invest can be a valuable partner for firms developing projects which may have environment and social impacts. 
 

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.