New Delhi, April 23, 2008—
IFC, a member of the World Bank Group, will advise the Infrastructure Corporation of Andhra Pradesh, known as INCAP, on a coastal roads project to boost economic growth in the Indian state. IFC will help develop public-private partnerships for the project, a combination new and existing toll roads and connecting radial roads.
The Vizag-Kakinada project, located on the east coast of Andhra Pradesh, is one of the first to be undertaken by IFC since it was appointed as adviser to INCAP last year.
Sanjay Jaju, Vice Chairman and Managing Director of INCAP, acknowledged that roads are an important component of the physical infrastructure needed for development and growth. He said, “An efficient transportation system is the lifeline of an economy, and this important project will boost the state’s economic development.”
Vipul Bhagat, who leads IFC’s Infrastructure Advisory in South Asia, said, “We have extensive experience in advising governments on public-private partnerships in key infrastructure sectors, especially road transportation, airports, and ports. We are privileged to support the coastal roads project in Andhra Pradesh through this unique partnership with INCAP and the state government.”
The project is expected to include about 100 kilometers of radial roads that connect a 150-kilometer coastal road to National Highway 5. IFC will undertake a due diligence review, help design the financial model, and hold consultations with potential bidders. IFC will also recommend an approach for private sector involvement, including allocating risks and responsibilities between the private and public sectors.
As part of its outreach efforts in India, IFC has signed a memorandum of understanding with the Infrastructure Corporation of Andhra Pradesh Ltd, a state government entity, to help develop infrastructure projects through public-private partnerships. In addition, the Indian government has enlisted IFC as transaction advisor for public-private partnerships in the country.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
