GoI, ADB Lend $300 Mn via IIFCL to Fund Projects Including Renewables

ADB funding is expected to fund at least 13 sub-projects through IIFCL, involving roads and renewable power generation, under the last tranche, says Kenichi Yokoyama.

The Government of India (GoI) and Asian Development Bank (ADB) signed a USD 300 million loan agreement to support lending by India Infrastructure Finance Company (IIFCL).

The Ministry of Finance said in a notification that, Kenichi Yokoyama, Country Director of ADB’s India Resident Mission signed the agreement on behalf of ADB. While, on behalf of GoI Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance signed the loan agreement.

Speaking on the occasion, Kenichi Yokoyama said that, ADB funding is expected to fund at least 13 sub-projects through IIFCL, involving roads and renewable power generation, under the last tranche.

Further, the project supports the renewed effort of the Government of India in accelerating infrastructure growth through increased private sector investment, the Ministry added.

It further said that, the project is relevant and responsive to the constraints to bank based infrastructure financing, fiscal space creation, and repercussions on GDP growth.

Moreover, the USD 300 million ADB loan is expected to help catalyze the financial closing of USD 2.4 billion in investments, Finance Ministry said.

In addition, the attached technical assistance will support IIFCL capacity development and will focus on IIFCL’s financial management and social and environmental safeguards.

“The project will enhance availability of long-term finance for PPP projects, improve operational capacity of IIFCL, and expand the portfolio of infrastructure financing instruments available to IIFCL,” said Sameer Kumar Khare.

Khare further said that the loan is expected to compliment Government’s infrastructure building efforts.