India secures nearly $1.92 billion loan from World Bank for health, private finance and real estate

0

Of the total $1.915 billion, the World Bank will provide $1 billion to support India’s health sector in pandemic preparedness and improved health service delivery. The $1 billion loans are split into two complementary loans of $500 million each.

According to the World Bank statement, with this combined financing of $1 billion, the Bank will support India’s flagship Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), launched in October 2021, to improve public health infrastructure across the country. In addition to national level interventions, one of the loans will prioritize seven states including Andhra Pradesh, Kerala, Meghalaya, Odisha, Punjab, Tamil Nadu and Uttar Pradesh.

The two loans, Public Health Systems for Pandemic Preparedness Program (PHSPP) and Enhanced Health Service Delivery Program (EHSDP), are designed to have complementary and transformational impact, supporting the Government of India’s reform agenda to accelerate universal coverage, improve quality and increase the resilience and preparedness of India’s health system, the World Bank said.

“The COVID-19 outbreak has re-emphasized the urgency of significant reforms to improve the performance of India’s health sector,” said Hideki Mori, World Bank’s Acting Country Director for India. “India’s decision to invest early and significantly to strengthen its health system even as it emerges from the pandemic is a pioneering choice and we are happy to support this important program. »

In addition, of the total, $750 million will be lent as a Development Policy Loan (DPL) to the country to support critical reforms to close financing gaps by leveraging private sector investments in infrastructure, small businesses and green finance markets.

Regarding private financing, Hideki Mori, Acting Country Director for India of the World Bank, said: “An efficient financial system capable of meeting the country’s investment needs is essential to support India’s rebound from the pandemic and to achieve its ambitious sustainable growth objectives”, adding: “This operation aims to reduce the pressure on public finances by mobilizing private resources to support the country’s development objectives.”

For private financing, of the $750 million commitment, $667 million will be a loan from the International Bank for Reconstruction and Development (IBRD) and $83 million will be financed by a credit from the International Association Development (IDA), the concessionaire of the World Bank. lending arm. The loan and credit will be provided on IBRD terms and IDA non-concessional terms, respectively, with a final maturity of 18.5 years, including a 5-year grace period.

In addition, in total, the World Bank has approved additional financing of $165 million to help India’s residential sector adopt rooftop solar systems and make solar power more affordable. These solar photovoltaic (PV) installations will provide clean, renewable energy and reduce greenhouse gas emissions by displacing fossil fuel-based generation. The project is expected to reduce greenhouse gas (GHG) emissions by 13.9 million tonnes.

Hideki Mori, the World Bank’s Acting Country Director for India, said, “This additional financing will increase India’s installed capacity of grid-connected rooftop solar and help India reach its goal of meeting 50% of its energy needs from renewable sources by 2030.”

According to the World Bank, the additional financing will directly finance 450 MW of rooftop solar capacity in the residential sector. Importantly, the project will provide concessional financing to developers and residential consumers and leverage additional private capital. It aims to raise $71 million in private capital, in addition to the $151.61 million raised so far.

For the residential sector, the additional financing includes a $150 million loan from the International Bank for Reconstruction and Development (IBRD) and an additional $15 million from the IBRD Fund for Innovative Global Public Goods Solutions .

On Thursday, the World Bank also announced a $190 million loan to the state of Tamil Nadu in southern India to meet the housing needs of low-income groups and vulnerable populations.

He said this recently approved second Tamil Nadu Housing Sector Enhancement Program is the second in a series of two single-tranche operations. This Development Policy Loan (DPL), the second in a series, will support the continued housing policy improvements introduced by the Government of Tamil Nadu (GoTN) and strengthen the institutions managing the housing sector in the state.

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Share.

About Author

Comments are closed.