Chennai, February 17, 2010—
IFC, a member of the World Bank Group, is helping India’s Chennai Metro Rail Limited establish operations of two metro corridors that will provide Chennai’s citizens with access to efficient and affordable public-transportation services.
IFC was engaged by Chennai Metro, a public sector unit, to be Lead Transaction Advisor for the project. IFC will help structure operations and manage arrangements of public-private partnerships with an experienced private operator. IFC also will work closely with experts from the World Bank Group to structure the project, marketing it to reputed operators, and help Chennai Metro organize a competitive selection process for the operator.
“Successful implementation of the Chennai Metro Rail project will help address the city’s traffic problems and reduce vehicular pollution,” said K. Rajaraman, Managing Director of Chennai Metro Rail Limited. “Shorter travel times and comfortable transportation will directly impact economic productivity and improve living standards.” He also noted that IFC’s global experience with mass-transportation projects will support expertise in India and help structure sustainable operations and project management.
For Chennai, capital city of the Indian State of Tamil Nadu with a population of about five million, traffic congestion is a problem. To address this, the Tamil Nadu government, together with the government of India, is undertaking construction of the system. Establishing high-quality operations and management is vital to the project’s success.
“The Chennai Metro project aligns with IFC’s strategic focus on promoting inclusive growth by providing access for all to a developed mass-transportation system as well as helping reduce greenhouse-gas emissions,” said Laurence Carter, IFC Director for Infrastructure Advisory. “Moreover, by showcasing the private sector’s role, the project could be a model for developing similar infrastructure projects in India.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
