Saturday 04 February 2012 Government 2.0: The Road Ahead
IFC to help Maharashtra tread PPP route

IFC would help Maharashtra Urban Infrastructure Development Company define a strategy and recommend organisational, governance and capital structures and models for infrastructure projects.

New Delhi: The Government of Maharashtra has appointed International Finance Corporation (IFC) as a consultant to advise the state on developing public-private partnership (PPP) projects in various infrastructure sectors.

IFC would help Maharashtra Urban Infrastructure Development Company (MUIDC) define a strategy and recommend organisational, governance and capital structures and models for infrastructure projects aimed at improving the state's economic growth.

In order to support MUIDC intentions of inviting strategic stakeholders to provide early stage equity, IFC would also assist the company in preparing business and financial plans, and in identifying it's capacity building requirements.

"Infrastructure is a priority in South Asia, where there is a shortage of bankable projects. Successful examples worldwide indicate that public-private partnerships are useful in opening up markets and for mobilising public and private sources," World Bank Group Executive Director Dhanendra Kumar said.

MUIDC Managing Director Sanjay Ubale further explained that an efficient transportation system and improved water supply were critical to boosting the state's growth and economic development.

Stressing on IFC's vast experience in advising governments on PPP projects, it's Infrastructure Advisory (South Asia) Head Vipul Bhagat said that MUIDC would be able to play an important catalytic role in developing public-private partnership projects in the state.

With a net commitment of about US $1 billion in single state projects, Maharashtra has one of the largest World Bank programmes among Indian states. All these projects focus on development of infrastructure in the state, IFC added.

Meanwhile, as a part of IFC's India Infrastructure Strategy, the finance corporation has also signed a Memorandum of Understanding (MoU) with the Infrastructure Corporation of Andhra Pradesh to help develop infrastructure projects through PPP.

In addition, the Government of India has enlisted IFC as transaction advisor for PPPs in the country.
—iGovernment Bureau

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