$400 Million ADB Loan to Boost Private Investment in India Infrastructure
Feb 06, 2014
The Asian Development Bank (ADB) and the Government of India signed an agreement for $400 million first tranche loan under the Accelerating Infrastructure Investment Facility in India (AIIFI) to support the government’s efforts to accelerate infrastructure growth through increased private sector investment.
The tranche 1 loan is part of the ADB-approved $700 million AIIFI multi-tranche financing facility for providing two loans to India Infrastructure Finance Company Limited (IIFCL) that will be used to advance direct loans for project developers and to take out bank loans.
Nilaya Mitash, Joint Secretary (Multilateral Institutions), Department of Economic Affairs (DEA) at the Ministry of Finance signed the agreement on behalf of Government of India, and Narhari Rao, Officer In-Charge of ADB’s India Resident Mission, signed the agreement on behalf of ADB. Mr. Sanjeev Ghai, Chief General Manager, IIFCL, signed the project agreement for IIFCL.
“This assistance to IIFCL will allow it to lead the market evolution for infrastructure financing and catalyze greater private sector investment,” said Mr. Mitash. “It will support public-private partnership infrastructure projects in roads, power, including clean and renewable energy, and water supply and sanitation through financial modalities like direct lending, take-out financing, and subordinate debt.”
“Infrastructure investments will encourage growth and jobs. The investment requirements are huge. Leveraging private capital is one of the solutions to overcoming a huge investment funding gap to boost infrastructure. The IIFCL loan will spur investment in infrastructure that the country urgently needs to ensure strong economic growth,” said Mr. Rao.
Established in 2006, IIFCL is wholly-owned by the government and its borrowing program is fully backed up by government guarantee. At the end of March 2013, it had a pipeline of 349 infrastructure projects, with a total project cost of around $90 billion, of which IIFCL financing is expected to be around $10 billion through foreign and local market borrowing. Its pipeline is expected to grow by an average of 40-50 projects per year between 2014 and 2019.
The latest financing for IIFCL comes on top of a previous $500 million loan facility approved in 2007, which helped fund 30 public-private partnerships, including the Delhi and Mumbai international airports, and a further $700 million approved in 2009, which is still being disbursed.
More News and Articles
Sep 27, 2023
News
New Launch: UNITRACC Module "Coding of Damage (Findings), Causes, and Consequences of Damage"!
New e-learning module of the course BE-07 Investigation and Inspection of Sewers and Pipelines now available on UNITRACC!
Sep 27, 2023
News
Report shows how leakage technology is advancing
Any water loss through leaking pipes is unacceptable in the eyes of the public, and on the launch of a deep-dive leakage report from Ovarro, technology leader for leakage solutions, Barbara Hathaway, explains how technologies continue to advance.
Sep 25, 2023
Article
Saving energy: Pumping liquids should follow the heartbeat
Pumping liquids may seem like a solved problem, but optimizing the process is still an area of active research. Any pumping application—from industrial scales to heating systems at home—would benefit from a reduction in energy demands. Researchers at the Institute …
Sep 22, 2023
News
Courtesy of Mcelroy- Mobile App goes live for PPXXI
PPXXI Conference and Exhibition welcomes McElroy Manufacturing, Inc. as the mobile app sponsor. Their sponsorship enhances networking opportunities for the delegates. Scheduled over September 25 -27, 2023, in Lake Buena Vista, Florida, PPXXI is the key technical and business event …
Sep 20, 2023
News
What’s on at Aquatech Amsterdam 2023
Aquatech is the leading water technology show in the world, with over 800 exhibitors and expecting over 22,000 visitors from over 140+ countries.
Sep 18, 2023
News
Cleveland's $3B Project Clean Lake Features Large-Scale Storage Tunnels
Designed to reduce pollution in Lake Erie by four billion gallons per year, Project Clean Lake is a 25-year plan being overseen by Cleveland's Northeast Ohio Regional Sewer District (NEORSD). When construction crews complete the $3 billion undertaking in 2036, …
Sep 13, 2023
News
Mullane rehabilitates heavily deteriorated stormwater pipelines
Mullane once again proved why the company is an industry leader in pipeline solutions with a relining project on the mid north coast of New South Wales.
Sep 11, 2023
News
Pezzimenti Trenchless boasts microtunnelling capabilities
Pezzimenti Trenchless continues to showcase its position as a leading trenchless specialist by completing works on two Victorian projects.
Sep 08, 2023
News
Silvertown Tunnel under Thames - Newham to Greenwich near O2 Arena: See two massive boreholes in east London
The second of two boreholes beneath the Thames – which will together form London’s new Silvertown Tunnel – is now complete.
Sep 04, 2023
News
American Water Issues Sustainability Report
Report highlights American Water’s sustainable impact on communities across the U.S.
Aug 31, 2023
News
Anaergia Selected to Design, Build and Operate Organic Waste-to-Renewable Energy Project in San Diego County
System to provide renewable power, reduce wastewater utility costs, and cut greenhouse gas emissions for East County Advanced Water Purification facility.
Aug 28, 2023
News
Interflow’s spiral wound lining for sustainable pipe maintenance
Spiral wound lining is a sustainable method of pipe maintenance, allowing water authorities and councils to renew their critical infrastructure. Interflow is an expert in this field and has been pioneering new techniques for decades.
Contact
Asian Development Bank
Karen Lane
6 ADB Avenue
1550 Mandaluyong City
Philippines