International Finance Corporation is
likely to first undertake the Vizag-Kakinada project, located on the east coast
of Andhra Pradesh. IFC was appointed as adviser to Infrastructure Corporation of
Andhra Pradesh's (INCAP) coastal roads project in 2007.
As part of this, IFC will help develop
public-private partnerships for the project which will be a combination new and
existing toll roads and connecting radial roads.
The Vizag-Kakinada project will
include about 100 km of radial roads that connect a 150 km coastal road to
National Highway 5. IFC will carry out the due diligence review, help design the
financial model, and hold consultations with potential bidders.
IFC will also recommend an approach
for private sector involvement, including allocating risks and responsibilities
between the private and public sectors. It had signed a memorandum of
understanding with the Infrastructure Corporation of Andhra Pradesh to help
develop infrastructure projects through public-private partnerships.
Also See:
IFC to assist
Andhra Pradesh with public private partnerships (29-Nov-07)