IFC inks USD 60 mn deal with Visakhapatnam civic body to upgrade sewerage

Amaravati, Sep 8 (PTI) The International Finance Corporation (IFC), a member of the World Bank Group, on Monday signed a USD 60 million (Rs 498 crore) financing deal with the Greater Visakhapatnam Municipal Corporation (GVMC) to upgrade sanitation infrastructure.

According to the Andhra government, the deal represents India’s "first-ever direct municipal financing," a press release said.

“In a historic milestone for urban India, IFC has committed up to USD 60 million (Rs 498 crore) in Rupee-denominated Non-Convertible Debentures (NCDs) to GVMC,” the release said.

Notably, this marks the first instance of a development finance institution investing in an Indian city without a sovereign guarantee, signalling a new era of municipal creditworthiness, it added.

The investment will fund the Madhurawada sewerage system project, aimed at "overhauling sanitation infrastructure" in one of Visakhapatnam’s fastest-growing areas.

The Madhurawada zone, in the city’s northern corridor, is witnessing rapid vertical residential growth, expansion of IT and digital economy sectors, and the development of premier educational and healthcare institutions.

With around 2.5 lakh residents already in the zone, the lack of a comprehensive underground sewerage system has led to untreated wastewater discharge, rising public health risks, and other challenges.

“This collaboration with IFC is a transformative step not only for Visakhapatnam but for urban India as a whole. It demonstrates that Indian cities, when financially disciplined and administratively progressive, can attract global investments without sovereign guarantees,” said Municipal Administration and Urban Development Principal Secretary S Suresh Kumar. PTI STH SSK