Projects in Panama with sovereign guarantee: IDB
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% corresponded to the Infrastructure and Environment Sector, 30% to Development Institutions programs, 16% to Social Sector programs, and 2% to Trade and Regional Integration programs.
Thus, the value of the Bank’s portfolio of sovereign-guaranteed projects under execution has been consolidating as a result of 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
Based on the growth experienced by the Bank’s portfolio of sovereign-guaranteed projects in recent years, as well as the emphasis placed on execution and the achievement of results, Management reinforced its focus on activities to identify and manage operations with low performance and high risk of not achieving their development objectives.
In addition, support to executing units continued to be increased to strengthen project management activities related to fiduciary management and disbursement projection.
In particular, one project will help increase international tourism, create jobs and develop urban areas with tourism activities.
During 2022, a new contingent credit facility for natural disasters and public health emergencies (CCF) was approved for US$400 million for Panama.
The Bank also approved an innovative investment project in Panama to create a smart tax ecosystem to improve the targeting and efficiency of 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.