JICA, IIFCL ink pact to finance PPP infrastructure projects

Japan International Cooperation Agency (JICA) inked a pact with IIFCL to provide 50 billion Japanese yen (about Rs 2,866 crore) assistance for implementation of infrastructure projects in PPP. "JICA today signed an agreement with India Infrastructure Finance Company Limited (IIFCL) to provide 50 billion Japanese yen Official Development Assistance (ODA) loan as the principal for the implementation of Public-Private Partnership (PPP) Infrastructure Financing Project," JICA said in a statement. The ODA loan conditions are concessional, i.e; the repayment period is fourteen years after a grace period of six years, and the rate of interest is floating rate of the London interbank offered rate for six month deposits in Japanese yen, it said. The pact was signed between Takema Sakamoto, chief representative of JICA India and Sanjeev Ghai, Chief General Manager of IIFCL. "The assistance will promote PPP-based infrastructure development mainly in the field of non-fossil power projects by providing long term finance to private/public enterprises and the banks/public financial institutions to lend to private/public enterprises for investment to viable infrastructure projects," it said. Sakamoto said, "India is well positioned to leapfrog technology in infrastructure projects and JICA's assistance will facilitate mobilisation of funds for high quality infrastructure development." Source: PTI