GVMC Loan (IFC-48784)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Madhurawada,Vishakapatnam city, Andhra Praadesh
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Greater Visakhapatnam Municipal Corporation
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 67.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 23, 2025

Disclosed by Bank Apr 12, 2025


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC, the proposed investment  comprises an A-loan of up to US$60 million in INR equivalent, to Greater Visakhapatnam Municipal Corporation (“GVMC”), an urban local body in the state of Andhra Pradesh. GVMC is responsible for the civic infrastructure and administration of the city of Visakhapatnam. The proposed investment would finance the development of Madhurawada Sewerage System in the northern part of the city as it is one of the fastest growing executive capital area in the city. The project involves the development of sewage collection network, sewage pumping stations, lift stations, and sewage treatment plant. The benefits of the proposed project are increased sustainability of sanitation services, improved environmental outcomes, mitigation of greenhouse gases, and cost efficiency.  

GVMC is the civic body that governs the city of Visakhapatnam, which is the largest city of the Indian state of Andhra Pradesh. The executive power of the GVMC is vested in the Municipal Commissioner, an Indian Administrative Service officer appointed by the Government of Andhra Pradesh.    

IFC’s investment will increase access to sanitation services in Visakhapatnam City through the expansion of the sewerage network, and the development of a wastewater treatment plant and sewerage pumping station, that will contribute to reduce and mitigate pollution generated by untreated wastewater. Beyond the Project, IFC's investment is expected to demonstrate the financial viability of India’s municipalities' urban infrastructure projects using commercial debt, enhancing the municipalities’ likelihood for accessing financing in the future from commercial investors.

The project consists of three (3) major components as follows: i) main lines and underground sewerage network of 410 kilometers including provisions of House Service Connections (HSC) and road restoration; ii) installation of two (2) sewage lifting station (SLS) and three (3) sewage pumping station (SPS) and conveyance of raw sewage to the proposed Sewage Treatment Plant (STP); and iii) construction, operation and maintenance of Sewage Treatment Plan (STP). The proposed STP site is to be built on a legacy solid waste dumping site at Kapuluppada. GVMC has since cleared the site of the dumped municipal solid waste.

The Project is presently in the initial planning stage. The proposed STP location and two lifting and three pumping stations within the sewerage network have been finalized. The Project Management Consultant (PMC) and engineering, procurement and construction (EPC) contractor are yet to be finalized. Operation and Maintenance (O&M) of the project will also be contracted out. Post construction of the project, EPC contractor will likely assume responsibility for O&M as O&M contractor.

Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML) is in the process of being appointed as a Project Management Consultancy (PMC) for the Project.  

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Out of total project cost of US$67 million, IFC will invest up to US$60 million (in INR equivalent) through subscription of non-convertible debentures issued by GVMC.  


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Greater Visakhapatnam Municipal Corporation
Anand Rao
Manager
+91-9603336622
manager@gvsccl.in
Tenneti Bhavan, Ramnagar, Visakhapatnam
https://cdma.ap.gov.in/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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