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The loan has been granted for 15 years at a floating interest of 8.15 per cent, which will be met from the own resources of GVMC.
| Photo Credit:
Andrii Yalanskyi
International Finance Corporation (IFC), a member of the World Bank Group, has committed a loan of up to $60 million (₹498 crore) to the Greater Visakhapatnam Municipal Corporation (GVMC).
According to a release, the loan has been granted for 15 years at a floating interest of 8.15 per cent, which will be met from the own resources of GVMC.
A formal agreement was signed between IFC and GVMC in the AP Secretariat in Amaravati on Monday, marking the first-ever direct municipal financing by IFC in India, and also the first instance of a development finance institution extending investment to an Indian city without a sovereign guarantee.
The loan will be utilised for the Madhurawada Sewage System Project, which aims to revolutionise sanitation infrastructure in one of Visakhapatnam’s most rapidly urbanising regions.
“The collaboration with IFC is a transformative step not just for Visakhapatnam but for urban India as a whole. It signals to the world that Indian cities, when financially disciplined and administratively progressive, can attract global investments without sovereign guarantees,’‘ S Suresh Kumar, Principal Secretary, Municipal Administration & Urban Development Department, Govt of AP said.
“The Madhurawada project is more than a sewerage system — it represents a forward-looking model of sustainable urban growth, resilience, and self-reliance. Our vision is to create a city that is not only cleaner and healthier but also sets a precedent for other cities aspiring to modernise with global standards of financing and governance’‘ he added.
Makhtar Diop, Managing Director, IFC, said: “Our partnership with Visakhapatnam shows how municipalities can mobilise private capital to deliver essential services affordably and sustainably—from wastewater and sanitation to transport and solid waste management — without sovereign guarantees.’‘
The first-of-its-kind municipal financing will help protect the city’s coastline, create jobs, and set a new benchmark for resilient, low-carbon growth, he added.
“It is a testament to the World Bank Group’s commitment to help cities leverage limited public funds to attract global private investment. What India is pioneering today can inspire cities everywhere to build cleaner, more resilient, and future-ready urban spaces,’‘ Diop said.
Published on September 8, 2025
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