| The World Bank's lending arm for private sector plans to invest about $ 200 million in such projects over the next couple of years. |
| Speaking to Business Standard, IFC chief investment officer (south Asia) Anita George, on the sidelines of conference orgainsed by Bombay Chamber of Commerce on Urban Infrastructure, said: "The world over, especially in developing countries, we are witnessing rapid urbanisation. We must improve urban infrastructure, which will sustain the future growth. IFC will take up the mantle of giving financial and technical aid to urban local self governments." |
| According to her, IFC's mandate is to extend financial aid to private sector entities which are investing in public infrastructure projects under the public private partnership programs (PPP). |
| The World Bank gives aid to federal and provincial governments but there is no agency to give financial assistance to these intermediaries bodies which are neither sovereigns nor corporate entities. |
| After working in South Africa, Russia, Guatemala, Mexico and a few other countries, IFC now wants to undertake few projects in India. |
| The Centre sometime back came up with the National Urban Renewal Mission (NURM) scheme which not only gives financial aid to the municipal corporations but also asks them to implement certain reform agenda. |
| "This makes us confidant that the IFC aid will be utilised for capacity building, equitable development and sustainable growth," added George. |
| The agency has identified projects of certain municipal corporations for investments. "We are in the process of working out the modalities," said George. |
| She, however, refused to divulge the names of municipal corporations with whom IFC is holding talks. |
| "Holding talks doesn't necessarily mean that we have taken final decision (on investment). Besides, those municipal bodies whose proposals are not being considered at this stage will feel disappointed," she said. |
| IFC will focus on projects of water supply, sewerage treatment, solid waste management and improving energy efficiency for offering financial assistance. It is also considering some transportation projects for financial assistance. |
| "We will also not force the municipal corporations to carry out reforms as a precondition for granting assistance. However, we will see improvement in accounting system of the corporations and rationalisation of property tax structure," said George. |
| We also like to see the municipal corporations moving away from the policy of taxing industries and commercial establishments which are engines of urban growth in the form of octroi or higher stamp duties," George pointed out. |
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