The Asian Development Bank (ADB) is helping India develop infrastructure projects that can attract private sector investment through the modality of Public-Private Partnerships (PPPs).
The Japan Special Fund, through ADB, will provide a $2 million technical assistance grant to help government agencies in India develop a number of pilot PPP projects which can eventually serve as models for future projects. All infrastructure sectors covered under this initiative include urban development, transport, water, health and education sectors.
ADB’s technical assistance is complemented by the India Infrastructure Project Development Fund (IIPDF), a facility of the Government of India.
According to the Planning Commission of India, the current infrastructure deficit requires a massive ramp up in infrastructure spending to 8% of gross domestic product from the current 4.7% in order to meet India’s growth and poverty alleviation targets. India needs around $500 billion in infrastructure investment funds between 2007 and 2012 – an amount too large to be met by the public sector alone.
ADB has supported India’s plan to bring in more public-private partnerships through two advisory technical assistance grants. The Indian government will provide $5.7 million equivalent from its IIPDF on a project-by-project basis. The project sponsor agencies will contribute $500,000 to cover project-specific office facilities, administrative support, and workshop facilitation.
Source: ADB, 21 Oct 2008