World Bank’s corporate finance arm International Finance Corporation on Wednesday said it would advise the Infrastructure Corporation of Andhra Pradesh on coastal roads project to lend a fillip to the economy of the state, a release issued by IFC said on Wednesday.
Washington DC-based IFC will help the government body develop public-private partnerships for the road project that would comprise upgrading new and existing toll roads and connecting radial roads.
The Vizag-Kakinada project, located on the east coast of Andhra Pradesh, will be one of the first to be undertaken by IFC. The World Bank arm was appointed advisor to INCAP last year.
The project would include about 100 kilometers of radial roads that connect a 150-kilometer coastal road to National Highway 5, IFC said.
IFC will carry out the due diligence review, help design the financial model, and hold consultations with potential bidders.
IFC will also recommend an approach for private sector involvement, including allocating risks and responsibilities between the private and public sectors.
IFC has signed a memorandum of understanding with the Infrastructure Corporation of Andhra Pradesh Ltd, a state government entity as a part of its outreach effort, to help develop infrastructure projects through public-private partnerships, the release added.
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments.
In the last financial year, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries, the release added.