Projects in Panama with sovereign guarantee: IDB

27th of December, 2024

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Projects in Panama with sovereign guarantee: IDB

28 marzo, 2023

English

As of December 2022, the active portfolio of projects in Panama of the Inter-American Development Bank (IDB) with sovereign guarantee in execution was composed of 611 projects with an undisbursed balance of US$31,845 million, equivalent to 56% of the originally approved amount.

Of the total undisbursed resources, 52% were allocated to the Infrastructure and Environment Sector. 30% went to Development Institutions programs, 16% to Social Sector programs, and 2% to Trade and Regional Integration programs.

As a result, the value of the Bank’s portfolio of sovereign-guaranteed projects under execution has been increasing. This is due to a higher level of approvals.

On average, the volume of the portfolio, measured as the amount approved, grew 11% in the last five years, compared to the previous five-year period.

In addition, according to the IDB, the average annual volume rose from $51.312 million in the 2013-2017 period to $56.909 million in the 2018-2022 period.

Projects in Panama

Building on the growth of the Bank’s portfolio of sovereign-guaranteed projects in recent years, Management has strengthened its focus. The emphasis is now on identifying and managing operations with low performance and a high risk of not meeting development objectives.

Additionally, support for executing units has been increased. This aims to strengthen project management activities, especially in fiduciary management and disbursement projection.

Notably, one of the projects aims to boost international tourism, create jobs, and develop urban areas with a focus on tourism activities.

In 2022, a new contingent credit facility for natural disasters and public health emergencies (CCF) was approved for Panama, with a value of US$400 million.

The Bank also approved an innovative investment project in Panama designed to create a smart tax ecosystem, aiming to improve the targeting and efficiency of public expenditures.

Another project in Panama trained indigenous women to install solar photovoltaic systems.

The Bank supported the first phase of reforms to strengthen inclusion, resilience and competitiveness in Panama’s tourism sector and conducted debt-for-nature swaps by leveraging policy-based guarantees.

Redacción Opportimes

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