Historic IFC-GVMC Deal to Transform Visakhapatnam's Sanitation

The International Finance Corporation (IFC), part of the World Bank Group, has taken a pioneering step by signing a USD 60 million financing agreement with Greater Visakhapatnam Municipal Corporation (GVMC). This landmark deal aims to overhaul sanitation infrastructure in one of India's fastest-growing urban areas.

The initiative represents the very first instance of direct municipal financing in India, realized without the backing of a sovereign guarantee. The funds are earmarked for the development of the Madhurawada sewerage system, addressing critical public health and wastewater management challenges.

The Madhurawada zone, undergoing rapid residential and economic expansion, faces increased pressure on its existing infrastructure. The collaboration between IFC and GVMC exemplifies how Indian cities can attract international investments by demonstrating financial discipline and innovative governance.

(With inputs from agencies.)