THIRUVANANTHAPURAM: International Finance Corporation (IFC), a leading global financial institution based in the US, has expressed interest in providing loan of over Rs 1,700 crore for 12 projects in the state that are being funded by the Kerala Infrastructure Investment Fund Board (KIIFB).KIIFB CEO K M Abraham said if the offer from IFC materialises, it will be the largest ever tranche of loan from an international funding agency to KIIFB. The Washington-based IFC, a member of the World Bank group, will provide the loan under the ‘Climate Resilience Bond’ category.
“Once we reach an agreement with IFC, Kerala will be the first state to receive funds under Climate Resilience Bond, which is usually given to countries,” said Abraham. The KIIFB CEO said he has conveyed details of the offer to Chief Minister Pinarayi Vijayan and Finance Minister Thomas Isaac. The proposal will be put up before the Board for approval, he said.
He said IFC was quicker in decision making when compared to the World Bank and this would avoid delay in various stages. IFC has agreed to give the in-principle approval for the loan by January 6, he said.
Abraham expressed hope that the ongoing internal disturbances in the country, owing to protests against the Citizenship Amendment Act, would not adversely impact the flow of investment from abroad. “I believe it is a temporary phase that may subside soon,” he said.
‘KIIFB releases funds only after following established procedures’
Abraham expressed surprise over the claim in the UDFs’ recent white paper on the state’s finances that KIIFB has been able to spend only `553.97 crore over the past three years. “Already `4,200 crore has been disbursed by KIIFB under various projects. Most of the projects undertaken are those which take 18-48 months to complete. Only after following established procedures does KIIFB release the funds,” he clarified.
Abraham also said a report of the Comptroller and Auditor General placed in the assembly had also quoted wrong figures. The C&AG had said KIIFB spent only a little over `40 crore when the agency had already disbursed over `447 crore. “The government wrote to the C&AG and the anomaly was rectified. A similar misunderstanding may have also occurred in the (UDF’s) white paper,” he said.
Investor image
The KIIFB CEO expressed concern over misleading information on KIIFB affecting investor confidence. “The political leadership has the right to criticise and point out its concerns. But when misinformation is floated, it affects the investor confidence on KIIFB,” said Abraham.
KIIFB has launched an infrastructure expo named ‘Kerala Nirmithi’ which aims at familiarising the public with the working of the agency. Exhibition of various projects undertaken by KIIFB, its fund mobilisation as well as utilisation mechanism and upcoming projects are featured in the programme which is currently on in the state capital . “We are planning to hold similar programmes in the state’s north and central regions as well,” he added.