Identifies common practices to be aware of when selling in this market, e.g., whether all sales material need to be in the local language.

Project Procurement

The IDB provides financing to governments who “run” the project procurement. Thus, companies are advised to apply the sales techniques used in public procurement. Public procurement requires a unique patience, attention to detail, and strong in-country support. In the context of the IDB, understanding the institutional roles and responsibilities that apply throughout the project life cycle is key to targeting sales efforts effectively.

IDB-funded projects are developed through a years-long public stakeholder consultation process, starting from the formation of a Country Strategy and culminating in the development of individual projects. Once a project is formed and approved the IDB lends money to the borrowing member country government, which assumes full responsibility for implementing the project. Contracts are awarded by the borrowing government through open international competitive bidding and procurement processes. Supplies and services needed to fulfill contracts are procured by contractors through their private sector supply chains. In neither case does the IDB procure goods or services for, or seek to influence the procurement decisions of, borrowing governments or contractors.

As such, traditional sales approaches to IDB officials are typically unwelcome, misguided, and reflect poorly on the offering firm. Bidders on specific contracts are best advised to focus on appealing to the borrowing government, using IDB staff as a source of market information and, in some cases, as a channel to reach the decision-makers within the borrowing governments. Subcontractors and suppliers are best advised to focus on getting into the private-sector supply chains that serve the contractors.

That said, IDB officials do appreciate opportunities to hear from the private sector on trends and developments, proven approaches to solving emerging problems, and other topics the likes of which one might hear at an industry association event or technical conference. Many managers see such interactions as opportunities for the professional development of their staff members. So well-conceived fact-finding meetings, Brown Bag Lunches, and other such interactions free of overt reference to specific companies, brands, technologies, products, etc., can be useful tools. The IDB also often holds events that provide excellent opportunities to network and learn what Bank officials are thinking about key topics.

Though time consuming, and with effects that are usually subtle and incremental, American firms willing to engage with Bank officials and other stakeholders over time will broaden their networks, learn about and possibly provide valuable input into priorities and the formation of future projects, and better position themselves to compete through established channels for projects that come through the pipeline as a result.

Communication, both written and verbal, should at all times be formal and clear. The environment and culture at the IDB, while dynamic in many respects, maintains a necessary high level of formality and decorum. English is often not the native language of your interlocutors although English proficiency is high at every level of the Bank and in every location. Opportunities for misunderstanding abound. Clear, concise, formal communication offers the best opportunity to be understood correctly and to reduce the risk of offense. 

Corporate Procurement
In support of its lending programs and due diligence, the IDB Group contracts with consulting and advisory firms in the amount of approximately $75 million per year via the BEO Procurement system. The Bank Group then short-lists qualified firms who are invited to submit proposals, which are then evaluated. 

Private Sector Solutions
IDB Invest offers financing to private sector interests to encourage entrepreneurship and build sustainable businesses in Latin America and the Caribbean. These include loans, equity, venture capital, and other financial/investment offerings, with special focus on infrastructure, manufacturing, agribusiness, services, and financial markets. In fiscal year 2016 IDB Invest investment commitments totaled $2 billion.

Making a proposal to IDB invest is similar to the process of pitching an investment opportunity to a commercial lender and will generally require the same “selling techniques.” Further, to be eligible for IDB Invest funding, a project must be located in an IDB Invest borrowing member country, be in the private sector, be technically sound, have good prospects for being profitable,benefit the local economy, and meet the environmental and social standards of IDB Invest and the host country.

The IDB Invest must obtain approval from the Bank’s Board of Directors before final approval of the financing can be completed.

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.