During this stage, the proposing entity and IDB Lab start the procedures to draft and sign the cooperation agreement. Upon execution, the project proposal is acknowledged as formally ready for kick-off.
If the IDB Lab Donors Committee approves the proposal, IDB Lab will notify the proposing entity to start with the legal procedures to draft and execute the cooperation agreement. To prepare the draft cooperation agreement, IDB Lab, in coordination with the IDB Legal Team, will request supporting information from the proposing entity, such as the entity’s incorporation documents and the representative’s power of attorney.
During this stage, the IDB Legal Team and the team of the proposing entity draft and review the cooperation agreement. Depending on the project business model, among other aspects, the main clauses regarding intellectual property and preconditions (conditions the proposing entity must meet for IDB Lab to disburse the financial resources) are reviewed. In some cases, the Project Team sends a standard head of terms with the main conditions as a dialogue guide with the proposing entity when drafting the definitive version of the cooperation agreement. The cooperation agreement must be prepared and executed within three months following the approval date, maximum.
After both parties have validated the cooperation agreement, the following step will be its execution by the representatives of the involved entities. The IDB Lab Agreement is usually executed by the representatives of the IDB Group located in the countries where the initiative will be developed and by the representative of the entity implementing the project, potentially the “Executing Agency”. Depending on the interest in disclosing the signing of the agreement, the entity and the representatives of the IDB Group may hold an execution ceremony with the participation of the respective communications teams. Once the Cooperation and/or Financing Agreement has been executed, the proposing entity becomes the “Executing Entity”, and the project execution stage begins.