Announcement of IFC to Assist Water Privatization in India : Program in State of Kerala is Country’s First on October 28, 1995

IFC TO ASSIST WATER PRIVATIZATION IN INDIA -- Program in State of Kerala is Country's First -- DELHI, Oct. 28 -- The International Finance Corporation (IFC) will sign a mandate with the Government of the State of Kerala, the southernmost state in India, to establish a private water supply system to serve public and private industries. IFC will advise the Kerala State Industrial Development Corporation (KSIDC) in the development of a private system, on a build-operate-own (BOO) and build-operate- transfer (BOT) basis, to provide 270 million liters per day of water to major industrial users, which are constrained in their current operations and scheduled expansion plans by the available water supply. This is the first large-scale private sector industrial water supply program of its kind in India. IFC will execute a comprehensive feasibility study to determine the appropriate technical, environmental, legal, commercial, and financial elements of the project and advise the Government in coordinating the competitive bidding process and other aspects of the transaction. The project cost is estimated to be ap proximately US$50-100 million. "IFC is committed to assisting India in mobilizing increased private sector participation in the modernization of its infrastructure," said Mr. Philippe Liétard, Director of IFC's Corporate Finance Services Department. "This project is an important step in that process, and its successful completion will enable it to serve as a model for similar water supply projects throughout the country." IFC is a member of the World Bank Group and is the leading multilateral source of equity and loan finance for private sector projects in developing countries. IFC also provides advisory assistance to governments in the design and implementation of privatization programs. IBRD IDA IFC MIGA ICSID