Int’l Finance Corpn to give a push to infra projects in U.P.
In collaboration with state govt, project management unit will be set up for solar power and expressway projects on PPP model in Uttar Pradesh; IFC global MD holds discussions with Yogi
The International Finance Corporation (IFC) is collaborating with the state government to set up a Project Management Unit (PMU) to identify and work out implementation of new solar and expressway projects on the private, public partnership (PPP) model in Uttar Pradesh.
IFC global managing director Makhtar Diop met chief minister Yogi Adityanath and held preliminary discussions on the issue at a high-level meeting that Adityanath chaired at his official residence here on Saturday.
“Yes, the IFC will set up a PMU and identify projects that can be implemented on PPP model. These include solar projects, solarisation of tube wells and the upcoming expressways that can be constructed on PPP model,” said chief secretary Manoj Kumar Singh after Diop’s meeting with the chief minister.
The expressways that may be considered for the PPP model include the link expressway that the state government proposes to develop to connect the Agra-Bundelkhand link of the Lucknow-Agra expressway with the Ganga Expressway.
The IFC, a member of the World Bank group, signed an MoU with the department of infrastructure and industrial development (IIDD) in July 2023 to support the state government’s efforts to promote PPP and provide advisory services on procurement, operation and maintenance of e-buses.
The IFC was engaged as a transaction advisor on the Jhansi Solar Project to assist the client (TUSCO) in structuring and tendering a solar power park project of 600 MW in Jhansi. The project is expected to reduce at least 1.1 million tons of CO2 emission annually, facilitate US$330 million of financing, reduce the energy gap, and increase generation of renewable energy. The IFC has contributed to a number of projects to promote investment in agtech (agriculture technology) in Uttar Pradesh.
Under this, IFC’s India Agritech Advisory Project (IAAP) is benefiting more than 30,000 farmers.
The IFC has invested in sewage treatment plant (STP) projects for the revival of the Ganga river under PPP in collaboration with the Jal Nigam of Uttar Pradesh and the National Mission for Clean Ganga.
Launched in 2017, the project involves the private sector in the construction, financing, operation and maintenance of sewage treatment plants (STPs) in Mathura and Varanasi.
An official spokesman said Diop expressed keen interest in the IFC’s support to Uttar Pradesh’s ambition to become a trillion-dollar economy and collaborate in the areas of infrastructure and agricultural technology (AgriTech). Diop said the IFC has been cooperating in many important projects in the country for the past several years.
“IFC committed US$200 million to IndiGrid, India’s first and largest power sector infrastructure investment trust, supporting the modernisation of India’s transmission sector through asset monetisation. At the same time, IFC actively engages in PPP transaction advisory for innovative renewable energy projects.”
The IFC and the World Bank Group are working with the state government to increase infrastructure investment in urban areas of the state. Uttar Pradesh has at least seven cities (Kanpur, Lucknow, Ghaziabad, Agra, Varanasi, Meerut and Prayagraj) with a population of more than 1 million, which can become an important part of this initiative.
The IFC and the World Bank Group can jointly help establish a pooled financing structure for the state to attract private capital into urban infrastructure. A pooled commercial financing structure could draw on the financial strength of U.P. to address collective funding requirements for urban infrastructure.
He said that with the support of the WBG 100 Cities program, including IFC, a state intermediary could raise loans/bonds on a pooled basis with a government guarantee or credit enhancement. The WBG-ADB 100 cities programme with the Ministry of Housing and Urban Affairs (MoHUA) aims to deliver bankable projects in water supply, sanitation, and solid waste management services in 100 cities. The programme is in the preparatory stages. The IFC has invested nearly US$750 million in 29 projects in sectors such as chemicals and fertilizers, housing, renewable energy, telecommunications, health and food processing since 2007.
The IFC delegation included IFC’s Country Manager for India and Maldives Wendy Werner; regional director for South Asia Imad Fakhoury; global director of disruptive technologies Farid Fezoa; regional industry director for infrastructure, Asia and Pacific, Vikram Kumar; regional industry director for financial institutions, Alain Forlemu; advisor for manufacturing, agribusiness and services, South Asia, Ramesh Ramanathan; and advisor to the managing director, Taeho Kang.
Earlier, the IFC delegation also held detailed deliberations with chief secretary Manoj Kumar Singh to identify possible collaboration opportunities. They also visited the Chief Minister’s Command Center, where secretary to the Chief Minister, Amit Singh, gave a detailed presentation on the CM Dashboard.