ADB Approves $2 Mn To Promote PPP In Infrastructure

New Delhi: Asian Development Bank (ADB), Manila-based multilateral funding agency, on November 20 said it is providing $2 million grant to India for enhancing public-private cooperation in infrastructure development. The government is exploring the synergies that a partnership with private sector can bring in the area of infrastructure, especially since public financing is not sufficient to generate the levels of investment needed to improve facilities, ADB said in a release.

The assistance will also integrate best practices garnered from such partnerships, he said, adding it would result in increasing efficiency which is critical in promoting economic growth and poverty reduction. According to ADB, weak infrastructure is costing the country about three to four percentage points of GDP growth annually. Under the 11th Five-Year Plan (2007-2012), the government estimates that the country needs to increase infrastructure spending to 8 per cent of GDP from 4.6 per cent.