Exim Bank of India has partnered with few Indian biggies to set up an advisory company in Mauritius so as to help propel India’s exports to Africa.
The shareholders’ agreement for this company--Kukuza Project Development Company (KPDC)—has been signed on July 24, Yaduvendra Mathur, Chairman and Managing Director, Exim Bank of India told Business Line here.
African Development Bank has participated in the equity of KPDC. Infrastructure Leasing & Financial Services (IL&FS) is the main sponsor of this advisory company.
This venture has been in the works for more than a year and the signing of the shareholders’ agreement is now being seen as big positive development to help push Indian exports to Africa.
“Exim Bank, State Bank of India and African Development Bank have together taken 49 percent and the rest is with IL&FS. The authorised capital is now pegged at $ 25 million”, Mathur said.
KPDC will essentially look to bring infrastructure projects in Africa to a bankable stage and facilitate exports from India to Africa.
Opportunities for infrastructure development in Africa are huge with a World Bank study projecting the annual investment requirement in infrastructure at $90 billion.
As much as two-thirds of this annual requirement will be for fresh investments and the rest for maintenance.
KPDC as a new firm would focus on early-stage design and preparation of African infrastructure projects. It is expected to process about 4-5 infrastructure projects in a year to begin with.
This advisory firm is expected to assume turnkey responsibility for preparing the contractual, technical and financial arrangements of its projects, and marketing such projects to a range of potential private and public-private investors for onward implementation.
srivats.kr@thehindu.co.in