Second Program for the Financing of Rural Sector Production Restructuring and Investments Projects (IADB-ME-L1190)

Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Inter-American Development Bank (IADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 30, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
BANSEFI
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IADB website

Updated in EWS Jun 25, 2017

Disclosed by Bank Apr 4, 2016


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
The objective of the second program under the conditional credit line for investment projects (CCLIP) ME-X1021 is to help raise productivity in Mexico's rural areas by financing production restructuring, investment, and enterprise and export-development projects. Accordingly, medium and long-term credit resources will be channeled to the rural sector through FIRA (Agricultural Trust Fund)'s network of financial intermediaries to enable enterprises, particularly micro, small, and medium-sized enterprises, in the rural agribusiness, commerce, and related services sectors to carry out their production restructuring, investment, and enterprise and export-development projects. The CCLIP's objective is to promote private investment in production restructuring, investment, and enterprise and export development projects that boost productivity or promote more efficient use of natural resources, primarily in Mexico's rural sector, through long-term financing that facilitates a greater supply of credit for such investments under favorable conditions. The loan provides resources to fund second-tier credit operations. Therefore its environmental and social impacts and risks will occur at the subloan level and cannot be foreseen ex ante.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
The program will have a single credit component for US$50 million to fund investment and technology adoption projects. Eligible projects will be those submitted by rural agroindustrial, marketing, and services enterprises with the aim of investing in, e.g., machinery and processing, transport, and storage equipment; repairs or upgrading of plants, warehouses and depots; the modernization of power plants; the treatment of wastewater; and other investments geared toward raising the productivity of the beneficiaries. The second Conditional Credit Line Program will be financed with resources from the Bank’s Ordinary Capital, in U.S. dollars, up to 50 million.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
ACCOUNTABILITY MECHANISM OF IADB The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

How it works

How it works