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The Asian Development Bank (ADB) and the Centre have signed a $300-million loan agreement to support lending by India Infrastructure Finance Company Ltd (IIFCL).
The move is expected to enhance the availability of long-term finance for public-private partnership projects, improve operational capacity of IIFCL, and expand the portfolio of infrastructure financing instruments available to the company.
Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, said the loan is expected to complement the government’s infrastructure-building efforts.
An official statement said, “The $300-million ADB loan is expected to help catalyse the financial closing of $2.4 billion in investments. 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 ADB funding is expected to fund at least 13 sub-projects through IIFCL, involving roads and renewable power generation, under the last tranche, according to Kenichi Yokoyama, Country Director of ADB’s India Resident Mission.
The Centre and ADB also signed a $105-million loan to support upgrading infrastructure for hydro-power transmission projects in Himachal Pradesh.
“The Tranche-3 loan is part of the $350 million multi-tranche financing facility for Himachal Pradesh Clean Energy Transmission Investment Programme approved by the ADB Board in September 2011,” an official statement said.
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