By Accommodation Times News Service
The World Bank is all set to finalize a new financing window to help meet their infrastructure funding needs. Global Infrastructure Financing has been in the works for the past few months, the issue is expected to get a fresh push likely to be final one.
The plan goes like this, the plan is driven by India, will see sovereign wealth funds and pension funds invest in securities floated by the World Bank. The multilateral agency is looking to raise resources from the middle segment countries.
The funds lending to infrastructure projects with the cost of funds lower than what is usually paid when developing countries or their companies raise resources from the markets. Pension funds and SWFs can hope to earn better returns than what they earn by parking funds in developed countries. And, by investing the funds with the World Bank, they transfer the risk which they would have had to take had they invested directly in developing countries.
“The World Bank is receptive to the idea and so is a majority of the membership,” said an official who did not wish to be identified. Sources said the corpus and other modalities would be finalized once the structure is worked out in detail.
The government has estimated that India alone needs $1-trillion funding to build roads, power plants, ports and airports during the five-year period ending March 2017, with nearly half the investment coming from the private sector.