India among 6 South Asian nations to benefit from EU funding

INDIA and five other South Asian countries are set to benefit from a new funding from the European Union (EU) worth $21.5 million (£15.7 million) which will help them to accelerate climate-smart, inclusive infrastructure investments in the region.

The project will be implemented by the US-based International Finance Corporation (IFC), a global development institution focused on the private sector in emerging markets, under the programme for accelerating climate-smart and inclusive infrastructure in South Asia (ACSIIS).

A five-year programme (2021-2026), the ACSIIS is aimed at helping spur investments in energy, water, waste management, transport, logistics, and green buildings to benefit people and businesses in India, Bangladesh, Bhutan, the Maldives, Nepal and Sri Lanka, Asian News International reported.

The initiative to leverage $850 million (£623.6 million) of private sector investments in the region comes amidst the severe impact of Covid-19 pandemic on investments in infrastructure which saw commitments in infrastructure with private participation in 2020 drop by an unprecedented 52 per cent from what it was in 2019.

According to the IFC’s estimates, the countries of South Asia can unlock more than $3 trillion (£2.2 trillion) of climate-smart investment opportunities by fully meeting national targets under the Paris Agreement by 2030.

According to Hector Gomez Ang, regional director for South Asia at IFC, attracting private capital for climate-smart infrastructure in a sustainable and inclusive manner will be critical for post-Covid recovery in the region.

Under the ACSIIS, the development of climate-smart investments in agriculture, manufacturing, tourism, health and education will also be supported, widening the existing EU cooperation in India into a regional intervention with multi-sector coverage, the report added.

The IFC will also support early-stage market development to address key market-wide constraints and deliver project-level technical advice to structure sustainable infrastructure investments for the target countries.

The programme will also support capacity building of private and government sectors to improve their ability to design, structure and implement sustainable infrastructure projects.

(With ANI inputs)