Financing Public Private Partnerships (PPPs) in Infrastructure through Support to the India Infrastructure Finance Company Ltd

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The objective of the Financing Public Private Partnerships (PPP) in Infrastructure through Support to India Infrastructure Finance Company Limited (IIFCL) Project is to increase the availability of long-term financing for infrastructure PPP projects. There are two components the project, the first component being long-term finance to infrastructure projects. This component will provide long-term funds to the IIFCL for on-lending to PPP-based infrastructure projects. The Bank team has carried out a pipeline review to identify projects eligible for financing through the International Bank for Reconstruction and Development (IBRD) loan. Based on the review, which was updated to factor in the impact of the recent global financial crisis on Indian infrastructure, the team believes that there will be a sufficient number of good sub-projects for the IIFCL to support through the proposed IBRD loan. The pipeline of sub-projects being considered includes selected power, roads, and ports projects. Finally, the second component is the capacity building. This component will include support for the two broad areas: a) strengthening IIFCL 's organizational needs in the following areas: i) strengthening and mainstreaming IIFCL environmental and social safeguards framework (ESSF) into its credit review process and post-sanction monitoring of sub-projects, ii) human resource strategy development and implementation, and iii) risk management and research support for IIFCL treasury; and b) implementing and monitoring the project: this will include support to the IIFCL for the day-to-day implementation of the project, covering all aspects of the operations manual (OM), including Financial Management (FM) monitoring and reporting; procurement; safeguards review; monitoring and implementation; overall results monitoring; and efforts to ensure governance accountability and transparency.