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2mo ago

IFC Commits ₹498 Crore to GVMC for Madhurawada Sewerage in India’s First Non-Sovereign Municipal Deal

A 15-year, 8.15% rupee package advances a Madhurawada sewerage network funded by IFC alongside AMRUT 2.0 support.

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Overview

  • IFC–GVMC pact marks IFC’s first direct municipal financing in India and the first DFI investment in an Indian city without a sovereign guarantee.
  • The agreement was signed on September 8 at the Andhra Pradesh Secretariat in Amaravati in the presence of Chief Minister N. Chandrababu Naidu.
  • IFC will invest up to $60 million (₹498 crore) via rupee-denominated non-convertible debentures to build the Madhurawada Sewerage System.
  • The financing carries a 15-year tenor with a floating 8.15% rate to be repaid from GVMC’s own resources, within a ₹553 crore project backed by AMRUT 2.0 (₹45.64 crore) and GVMC funds (₹9.36 crore).
  • The network is planned to cover roughly 2.5 lakh residents over 30 years, cutting untreated wastewater flows, curbing urban flooding risk and supporting coastal resilience.