To improve the environmental sustainability of fast-growing cities and urban spaces in India’s National Capital Region, the German Government-owned development bank KfW is signing a Loan Agreement worth Euro 100 million and a Grant Agreement for project development and capacity building of EUR 1 million with the National Capital Region Planning Board (NCRPB).
The concessional funds will be used by NCRPB to finance improvements in water supply, sewerage and sanitation, solid waste management, drainage and other environmentally friendly urban infrastructure in the urban areas of the National Capital Region (NCR) of India. The Agreements will be signed in the Department of Economic Affairs (DEA), Ministry of Finance, by Ms. Naini Jayaseelan, Member Secretary NCRPB, and Mr. Uwe Ohls, Director General Europe and Asia of KfW, in the presence of Mr. Prabodh Saxena, Joint Secretary DEA of India’s Ministry of Finance and H.E. the Acting Ambassador of the Federal Republic of Germany.
The NCR has been a major driver of economic growth in India and is a unique example in India of inter-state regional development planning. The sheer pace and scale of urbanization in one of India’s fastest growing urban agglomerations, coupled with the resultant urban congestion, requires massive investments in municipal development in this region. The concessional loan provided by KfW on behalf of the German Government will refinance sub-loans by NCRPB to urban infrastructure sub-projects with positive environmental impacts. The objective of the loan is to contribute towards the improvement of the environment, the preservation of natural resources and the living conditions of the urban population of the NCR. The grant would provide project development and capacity building support to the NCRPB, the ULBs and other implementing agencies in the NCR in order to enable them to develop well-structured bankable projects and innovative solutions for delivery of urban services. The beneficiaries comprise the Urban Local Bodies of the NCR and Counter Magnet Areas of NCRPB.