$67m loan boosts Indian agriculture PPP

In a bid to improve physical and institutional links in agriculture, the Indian Agribusiness Infrastructure Development Investment Program, approved by the ADB in 2010, intend to use the loan, the first installment of a US$170m multitranche financing facility, to boost private sector investment.

Private investors will be sought to provide collection services, grading, packaging, storing, processing and cold-storage facilities to a range of high value chains.

The Agribusiness Infrastructure Development Program said the the aim of the loan will be to leverage private sector investment and management into agri-business infrastructure through PPPs.

In conjunction with the Department of Agriculture and the Government of Bihar, the first tranche loan from the ADB has a 25-year term, with commitment charges of 0.15% and interest in accordance with ADB’s libor-based lending scheme.

The project, expected to be implemented over six years, is designed to help farmers, traders and other value chain stakeholders to improve their products and processes and become more competitive in a changing market.

Source: PPP bulletin, 13 July 2012