PROJECTS / Sustainable and Inclusive Value Chains in Infrastructure Projects

Sustainable and Inclusive Value Chains in Infrastructure Projects

Latin America and the Caribbean

October 5, 2023

IDB Invest has hired K&M to conduct a comprehensive research project aimed at fostering best practices and uncovering new opportunities in establishing inclusive and sustainable value chains within Port Infrastructure projects across the LAC region. Beginning with an exploration of the construction and operational phases of Ports’ value chains, the initiative will discern the components that incorporate MSMEs and identify prevalent sustainability trends within these chains. K&M will conduct an in-depth analysis of the Ports’ Value Chains, pinpointing the products and services offered at each stage, the complexity, required technical knowledge, certifications, and other pertinent criteria sought by project sponsors. The study also aims to grasp the procurement dynamics, identify key stakeholders, and pinpoint MSME participation levels across the value chain components. Furthermore, the research will emphasize key sustainability trends like decarbonization, climate change adaptation, and fair treatment of employees, among others. To achieve these objectives, K&M will gather information from various sources, conduct interviews with industry stakeholders, generate written reports and visual presentations, and engage in regular discussions with the IDB Invest team.

IDB Invest has engaged K&M to conduct a study on the best practices and opportunities in inclusive and sustainable value chains for Ports Infrastructure projects in the LAC region. The primary focus is to identify components within the value chains during the construction and operation phases of ports, particularly those involving MSMEs, and to assess current sustainability trends.

K&M’s approach starts with a deep analysis of Ports’ Value Chains, covering both construction and operational stages. The study will identify all products and services within the value chain, analyze their sequence, and evaluate criteria such as technical requirements and certifications needed from suppliers. The research will also explore procurement processes to determine the roles of various stakeholders like project sponsors, operators, or third parties.

A key aspect of the study will be to recognize areas of the value chain with significant MSME participation, ranking them based on factors like MSME involvement, product complexity, and supplier capability. Furthermore, K&M will explore prevailing sustainability practices in ports, covering topics such as decarbonization, climate change adaptation, and biodiversity conservation. This will involve comparing current practices across existing LAC ports and considering MSMEs as integral users of the port.

K&M’s research methodology will encompass both primary and secondary data sources, including statistical data, academic literature, and industry studies. They’ll also utilize recent value chain analyses from the IDB Group and gather insights from interviews with industry experts, businesses, and port operators. The findings will be documented in detailed reports and visual presentations, with regular feedback sessions with the IDB Invest team to ensure alignment.

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