The proposed multitranche financing facility, namely Accelerating Infrastructure Investment Facility in India (AIIFI), involves a sovereign loan of $700 million to India Infrastructure Financing Company (IIFCL) to support the renewed effort of the Government of India' in accelerating infrastructure growth through increased private sector investment.
The objective of the facility is, therefore, to accelerate infrastructure growth by catalyzing private sector investment. This is necessary as reliable and high quality infrastructure is a critical determinant of productivity to support sustained economic growth and poverty reduction. The impact of the facility would be increased availability of infrastructure. The outcome would be facilitated private sector investment in infrastructure public-private partnerships (PPP).
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