| Project Detail |
Project Name
Financing Environmentally Sustainable Growth in Infrastructure Project
Project Number
57291-001
Country / Economy
India
Project Status
Approved
Project Type / Modality of Assistance
Loan
Realization of Indias vision to reach a milestone of being a $5 trillion economy by 2025, would require significant investments in the provision of new infrastructure and upgrading of existing ones. India is highly vulnerable to climate change and the country is expected to experience increasing climate hazards that are projected to increase in frequency and intensity. For instance, India has been witnessing extreme precipitation events across the country, which are projected to intensify. This poses flooding risks to roads, rails, maintenance facilities, and other assets, with below-grade infrastructure such as tunnels, and poorly drained facilities being particularly vulnerable. Some areas will experience cycles of extended drought followed by extreme precipitation events. This may call for increased maintenance costs, particularly in road sector. Given Indias large infrastructure financing needs and huge climate change impact, stepping up investments would need addressing upstream policy challenges and creating alternative financing capacity. The infrastructure sector suffers from inadequate private financing and increasing capital flows towards sustainable infrastructure projects is a critical priority. In addition, with the absence of Paris-aligned portfolios and inadequate capacity for raising green funds for sustainable infrastructure growth, development financial institutions (DFIs) have insufficient experience of funding and managing innovative, sustainable projects. The facility aims to address the absence of catalyzing financing and risk-sharing facility anchored by a sovereign institution for accelerating private investment into environmentally sustainable growth in infrastructure projects. |
