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UK-India Infrastructure Financing Bridge to unlock sustainable investments

iGlobal Desk

The UK-India Infrastructure Financing Bridge (UKIIFB) agreement was signed between the City of London Corporation and the National Institution for Transforming India (NITI Aayog), marking the strengthening financial and professional services partnership between the two nations.

The initiative leverages the UK’s expertise in structuring and phasing major projects in order to unlock sustainable infrastructure investment into India. The first raft of projects under consultation in the partnership include national highways, regional rapid transport and renewable energy.

Chris Hayward, Policy Chairman of the City of London Corporation, said: “The UK’s expertise in professional services, finance and scaling major projects makes it a natural partner to meet India’s growing infrastructure needs, showcasing the City of London’s position as a global city.

“Additionally, our leadership and talent in green finance can facilitate the development of India’s ambitious sustainable projects providing climate solutions in the push to net zero. We look forward to further developing this new and exciting partnership.”

B.V.R. Subrahmanyam, CEO of NITI Aayog, said: "This initiative underscores the commitment of both nations to work together in unlocking major infrastructure investment opportunities in India.

“This is a game-changer that not only accelerates India's economic ascent but also strengthens its position on the global stage. It is not limited to connecting the two nations; it connects India to its aspirations of becoming a global powerhouse."

Vikram Doraiswami, High Commissioner of India to the UK, added: “Announced as an objective at the last India-UK Economic and Financial Dialogue (EFD) in September 2023, this structure is the culmination of over a year of shared effort.

“As India's NITI Aayog and the City of London implement the UKIIFB, and thereby jointly design large infrastructure project proposals in a manner that benefits private capital inflows, India and the UK will broaden and deepen their relationship by contributing to each other's lasting and sustainable growth.”

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The UKIIFB will have a steering committee, which includes representatives from HM Treasury, Aon, Arup, Mott MacDonald, Clifford Chance, Sequoia Investment Management Company, Department of Economic Affairs, Larsen & Toubro, Sorin Investment Fund, Economic Laws Practice and AECOM India Private Limited. The Steering Committee will drive the recommend aims of the UKIIFB, including:

·       To suggest ways to accelerate the mobilisation of international private sector investment into Indian sustainable infrastructure.

·       To provide policy makers with recommendations on how to address barriers to international private sector investment in Indian sustainable infrastructure.

·       To work together towards developing knowledge and best practices on sustainable infrastructure projects and how these can be better positioned as investable and attractive to international investors.

Simon Harris, Managing Director for International Development Services at Mott MacDonald, said: "Investment in climate-resilient infrastructure will play a key role in supporting India's rapid economic and social development.

“The United Kingdom-India Infrastructure Financing Bridge (UKIIFB) is an excellent opportunity for investors to collaborate with India's project shapers to accelerate investable and sustainable infrastructure development."

Sowmya Parthasarathy, Director of Urban Design & Masterplanning, Arup, said: “Infrastructure is the foundation for India's economic growth. Today’s announcement of the United Kingdom-India Infrastructure Financing Bridge (UKIIFB) comes at a pivotal moment.

“It is a unique partnership bringing the UK’s expertise in structuring and phasing major projects in order to help unlock sustainable infrastructure investment into India.”

Mark Courtneidge, Director, Construction and Infrastructure, Aon UK, said: “There are major opportunities under development in India within the area of sustainable infrastructure, so Aon is very pleased to be part of the steering committee for UKIIFB.

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“I’m sure that that our local and global expertise in providing risk solutions will both support and facilitate the team’s ambitions.”

Anurag Gupta, Chief Risk Officer, Sequoia Investment Management Company, said: “India’s rapidly growing sustainable infrastructure demand must be met with adequate project and risk management expertise.

“Sequoia Investment Management is extremely pleased to be part of the Steering Committee for UKIIFB and I’m looking forward to seeing the outcome of our collaboration in this series of projects.” 

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