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In a bid to enhance India’s limited presence in the infrastructure space in Africa, Exim Bank will soon set up a Project Development Company (PDC) in association with the African Development Bank, a multilateral institution for 55 African countries.
David Rasquinha, Executive Director of the bank, said: “The PDC will identify opportunities in Africa and bring these opportunities towards financial closure.” State Bank of India and Infrastructure Leasing & Financial Services will be the other partners in the PDC. Each of the four partners in the PDC will chip in $5 million to start the venture. The project reports that PDC will put together will save precious time and money that companies otherwise would have to spend in undertaking techno-economic feasibility studies.
Benefits Exim Bank will reap the benefits if it finances an Indian company that bags projects sourced through the PDC. Elaborating on the potential in Africa, Rasquinha said that the rail network in the African continent is underdeveloped as compared to India. “There is a big demand for rail services in Africa,” he added.
The PDC will look at large projects that will be built across two-three countries in Africa. “If there is a financing demand from an Indian company after the evaluation, Exim Bank will be happy to look at it,” Rasquinha said. He clarified that the bank will finance only Indian companies that bag projects in the continent. Exim Bank and ADB will hold a meeting next month in Rwanda to take the discussions forward.
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