Minister highlights role of Multilateral Development Banks

FAPCCI Picture

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) and The Federation of Telangana Chambers of Commerce and Industry (FTCCI) recently organized a Virtual Conference on Business Opportunities with largest sources of funding.

Addressing the virtual conference Mr. Mekapati Goutham Reddy, Minister for Industries & IT, Govt of AP highlighted the role of Multi-lateral banks and said that the Visakhapatnam Chennai Industrial Corridor Development Program (VCICDP) is being carried out with a multi-tranche financing facility (MFF), a grant, and a policy-based loan of USD 630mn from the Asian Development Bank (ADB).

‘Andhra Pradesh was the first state to utilize the support of MDB’s way back in 1980’s’ said a release from FAPCCI quoting the minister. 

He also spoke on the funds provided by New Development Bank (NDB) for two road projects worth USD 646mn.

World Bank (WB) is funding on Rejuvenating Watersheds for Agriculture Resilience through Innovative Development (REWARD) project in five parched districts of Rayalaseema and also the tribal belt in Visakhapatnam informed the minister.

Mr Goutham reddy also informed that the development of Vizag metro is picking up pace and to finance its estimated project cost of INR 16,000 Cr the state government is in talks with MDBs and Financial institutions

What are MDBs?

“MDBs provide financial assistance to developing countries, typically in the form of loans and grants, for investment projects and policy-based loans. Project loans include large infrastructure projects, such as highways, power plants, port facilities, and dams, as well as social projects, including health and education initiatives.”

Appreciating the role of MDBs, President, FAPCCI, Mr. C.V. Atchut Rao, said Multilateral Development Banks (MDBs) play a critical role in supporting efforts to translate meaningful country-level targets, policies, programs, and projects realizes the objective.

‘MDBs provide direct financing and help unlock and catalyze additional public and private resources’ said Mr Atchut Rao. 

He further requested MDBs to address regional/global issues like disaster relief and climate change, apart from undertaking major infrastructure projects.

Officials from World Banks, Asian Development Bank, Asian Infrastructure Investment Bank and New Development Bank briefed the audience on the procurement systems/procedures, upcoming projects and opportunities for contracts/projects.  They also mentioned about the projects in India more particularly in the States of Telangana and Andhra Pradesh.

Some of the other dignitaries who participated in the virtual conference included Mr Adityanath Das IAS, Chief Secretary, Government of Andhra along with Mr. Jurminla, Senior Procurement Specialist- Operational Service Department, The Asian Infrastructure Investment Bank., Mr. Sreenivas Devarakonda, Procurement Specialist, The World Bank, Mr. Shyam Sunder Mehndiratta, Senior Procurement Officer, Asian Development Bank, Mr. Nitin Gupta, Procurement Specialist, The New Development Bank (NDB) Mr. Ramakanth Inani, President and Ms. Khyati Naravane, CEO, FTCCI.

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