World Bank loans for Indian infrastructure
By Steve Skinner24 September 2009
The World Bank has approved US$ 4.3 billion in loans for road, port, power and airport construciton projects in India.
A US$ 2 billion banking sector support loan will provide budgetary support to the Indian government and help maintain credit growth levels, social banking and employment growth. Meanwhile, a US$ 1.2 billion loan to the India Infrastructure Finance Company (IIFCL) is designed to support the organisation's role in creating a catalyst for private financing for public-private partnerships (PPPs) in infrastructure.
Robert Zagha, World Bank country director for India said, "This is a crucial time to support India. The World Bank's support will help maintain credit growth and continued infrastructure investments.
"Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth."
Mr S kohli, Chairman of IIFCL said, "This loan will help us to increase the availability of long-term finance for infrastructure projects across a range of sectors including roads, power, airports and ports."
A further US$ 1 billion loan has been granted for the Fifth Power System Development project, which will help the Powergrid Corporation of India strengthen five transmission systems in the northern, western and southern regions of the country.
The Bank also approved a US$ 150 million loan for the Andhra Pradesh Rural water Supply and Sanitation project, designed to improve water supply and sanitation services in 2600 villages across six districts. The project aims to provide piped water to 2.1 million people and extend sanitation services to one million people who don't currently have access.