WASHINGTON, D.C., Aug. 26 -- The International Finance Corporation (IFC) has signed an agreement with the Government of Gujarat (GoG) for providing advisory services in the structuring of two pilot port projects in Gujarat, India. The development of these two sites is part of the new Ports Policy of GoG which envisions the development of 9 ports in total. The first site, Dahej, will be designed as a public/private joint venture, while the second site, Hazira, will be a purely private sector project.
The development of ports in India is now a priority for both the Central and the State governments. This project is an important step forward in the development of private sector participation in infrastructure activities initiated at the State government level. Successful completion of the project will provide the basis for replication of port development projects in Gujarat and other coastal States.
IFC will act as lead advisor to the GoG in structuring and selecting a qualified group of investors and operators to undertake this project. IFC's advisory work will include the project development phase, coordination of the bidding process and implementation of the transaction.
"IFC's advisory mandate with GoG demonstrates its commitment to promoting private participation in infrastructure in India," said Mr. Philippe Liétard, Director of IFC's Corporate Finance Services group. "This project is an important step in that process, and its successful completion will enable it to serve as a model for similar port projects throughout the country."
IFC is the private sector arm of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries. IFC also provides advisory assistance to governments in the design and implementation of privatization programs.
