The IIC's Policy on Disclosure of Information is aimed at furthering the public's understanding of the IIC=s mission and increasing the transparency and accountability of its operations. This policy provides for the regular dissemination of information on the IIC=s core operating policies and activities, particularly those aspects, such as environmental issues, that have the greatest potential impact on the IIC's constituency.

Comments from the public on this recently adopted policy are encouraged. Comments can be directed to the electronic mailbox located on this Web site, or by writing to

Office of the General Manager
Inter-American Investment Corporation
1300 New York Avenue, NW
Washington, DC 20577
U.S.A.

DOCUMENT OF THE INTER-AMERICAN INVESTMENT CORPORATION

CII/GN-129-3

January 15, 1999

POLICY ON DISCLOSURE OF INFORMATION

I. INTRODUCTION

1.1 In accordance with the Agreement Establishing the IIC (the ACharter@), which provides that the archives of the IIC are inviolable, the information generated, drafted, prepared or obtained in the course of the IIC=s activities is considered part of its archives and may be released only in accordance with established policies authorized by duly constituted IIC authorities. This document sets out the policy of the Inter-American Investment Corporation regarding disclosure to the public of information related to IIC´s operational activities and describes the procedures and facilities used to provide that information in a readily accessible format.

II. OBJECTIVES

2.1 The IIC recognizes that as a multilateral institution, part of its role is to increase overall private and public understanding of its unique mission. Transparency of operations is an important element in ensuring the accountability required of a multilateral institution. Freer exchange of information should lead to increased private and public awareness and support for the IIC and its operations, as well as enhanced cooperation among institutions supporting private sector activities.

2.2 The IIC will disclose information on its operational activities on a regular and systematic basis. At the same time the Corporation will seek to ensure that dissemination of information is properly balanced against the need to protect the confidentiality of private business initiatives that are the object of IIC´s investment activities as well as to encourage a free flow of information to the institution that would be less forthcoming if the confidentiality as to source or substance of the information could not be ensured.

III. PRINCIPLES GOVERNING DISCLOSURE

3.1 The disclosure of information to interested parties external to the institution (and any solicitation of comments) will be governed by the well-defined principles and procedures, as set forth herein. The following basic principles apply to the disclosure of information:

(a) To the extent feasible, access to all public IIC information will be readily available to any interested party.

(b) The IIC will not disclose information that would cause harm to the IIC=s interests, those of its shareholders, those of its beneficiaries, or those of a cofinancing institution; would invade the privacy or endanger the independence of its staff; or would violate agreements with third parties. The IIC will not disclose information that the IIC determines to be confidential or sensitive or information that a private sector enterprise, cofinancing institution or any other party associated with an IIC operation has indicated to the IIC is confidential or sensitive, as defined in Section V below.

(c) The IIC will disclose to its prospective clients its policies and procedures regarding public disclosure of certain information at the time that the client signs a mandate for the IIC to evaluate a proposed investment transaction. The IIC will provide its clients with copies of documents relevant to their specific private sector business which are to be publicly disclosed prior to disclosing information to the public.

IV. INFORMATION TO BE MADE AVAILABLE FOR PUBLIC RELEASE

4.1 The information listed below is available in printed form at IIC Headquarters, at IIC regional offices and through the IDB public information facilities. Except as noted, this information will also be published in electronic format on the IIC=s Web site in order to ensure the greatest access to all interested parties.

4.2 Information regarding the administration and governance of the Corporation is available in The Agreement Establishing the Inter-American Investment Corporation.Key policy papers covering the core operating policies of the institution, once approved by the Board of Executive Directors, are also available to the public.

4.3 The audited financial statements of the Corporation as of December 31 of each year are published in the Annual Report, including the balance sheet, income statement, statement of cash flows and notes regarding accounting and financial policies. The list of shareholders and their capital contributions, governors and Executive Directors of the Corporation is also disclosed in the Annual Report.

4.4 General information regarding the Corporation=s operations is published in the IIC Annual Report, various instructional brochures and periodic news releases. In addition, the following project-specific information, including information related to environmental issues, will be made available on a routine basis:

(a) Investment Summary and Environmental Issues Review (IS/EIR):

4.4.1A brief summary of every investment proposal will be made available to the public, including the name of the borrower/investee, the nature and business of the operation, the scope of the project and the amount proposed to be financed by the IIC, as well as the IIC environmental classification¹ , a summary of potential environmental impacts and safety issues, and pertinent recommendations or IIC requirements for addressing these issues during project implementation. The IIC will obtain consent regarding the text of the investment summary and environmental issues information from the affected private sector enterprise.

4.4.2 Preliminary information for projects designated environmental Category IV, which are determined to potentially result in diverse and significant negative impact on the environment and therefore may require a more extensive period for evaluation, will be released at the time IIC Management determines to undertake an in-depth appraisal of the potential investment project. IS/EIR information for all other projects will be made available to the public within at least 30 days of the final decision by the IIC Board of Directors.

(b) Environmental Impact Assessment (EIA):

4.4.3 Detailed Environmental Impact Assessments prepared for Category IV projects will be available to the public upon request as early as possible after they are obtained by the IIC over the course of the project appraisal.2 Environmental assessment documents also are required for a limited number of projects which may have specific negative impacts on the environment but which are determined to be limited in scope with well-defined solutions and thus have not been classified as Category IV. The availability of these documents will be disclosed to the public, along with an abbreviated summary of the specific environmental aspects of the proposed project, at the time the documents are obtained by the IIC in the course of the project appraisal² , generally within the same time frame as for Category IV projects. The IIC may withhold confidential information contained in these documents, pursuant to the principles outlined in Section III.

4.4.4 A roster of EIAs prepared for Category IV projects, or prepared in a limited number of cases for projects with more limited potential environmental impact, will be made available on the IIC Web site; a printed version of the roster will be updated on a quarterly basis.

V. CONFIDENTIAL INFORMATION

5.1 The IIC is called upon to effectively balance the goal of providing increased access to information to the public while safeguarding the confidentiality of its business information and that of its private sector clients. The following categories of information should remain confidential:

(a) Intellectual property or other information that has been disclosed to the IIC under any obligation of confidentiality, or intellectual property of the IIC.

(b) Information concerning the IIC's operations or proposed projects whose public disclosure might adversely affect the private sector enterprise concerned, including project appraisal reports or legal documents prepared by the IIC and/or its external consultants, or financial, business or proprietary information of private sector enterprises received by the IIC in the analysis, negotiation or administration of transactions unless permission is given by those private entities to release such information. ³

(c) Records of internal deliberative processes except to the extent that the Board of Executive Directors determines they should be made public.

(d) Internal financial information that may affect the IIC's activities in capital and financial markets or to which such markets may be sensitive, including, but not limited to, liquidity investments; estimates of future borrowings and redemptions of borrowings; expected rates of interest, rates of return and financial ratios; and documents dealing with financial matters not yet approved by the corresponding IIC authorities. Subject to Management's discretion, IIC staff may consult with outside parties with specialized knowledge of the subject matter when preparing policy papers before these are submitted to the Board of Executive Directors.

(e) Information dealing entirely with internal administration or operating systems, or information related to procurement processes submitted by prospective bidders, proposals or price quotations.

(f) Personal or employment-related information about staff members.

(g) Privileged information such as legal advice and matters in legal dispute or under negotiation. This also includes disciplinary and investigatory information generated in or for the IIC.

VI. APPLICABILITY

6.1 Documents that were produced or are the result of information obtained before the adoption of this policy and heretofore were not made public, will only be released upon request and after a case-by-case review in light of the principles outlined in Section III above. Specific permission of any directly affected private sector enterprise or cofinancing institutions will be obtained before the release of these documents. To the extent that the private sector enterprise or cofinancing institution requests preservation of the confidentiality of such information, this preference would be respected.

VII. PUBLIC INFORMATION FACILITIES

7.1 In order to facilitate public access to information the IIC will make available a Web site on the Internet. General information about the Corporation's activities and operating policies, Investment Summary and Environmental Issue Review documents and a roster of available Environmental Impact Assessments will be available in electronic media format.

7.2 Printed documents are available from IIC Headquarters by contacting the Office of the General Manager in Washington, D.C. or through IIC's regional staff in San José, Costa Rica, Montevideo, Uruguay and Bogotá, Colombia.

7.3 Printed documents will also be available through the IDB=s special public information facilities at Headquarters and in the field. The IIC will coordinate with the IDB Office of the External Relations Advisor, who will have primary responsibility for providing printed information to the public through the IDB public information facilities and IDB field offices.

Footnotes

³ The IIC has entered into specific agreements with institutions of the IDB Group and other entities that require the exchange of information related to project proposals or other operations. Pursuant to these agreements IIC documents that are not considered public may be shared with staff of these institutions.