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AIIB expects to invest US$100m a year in Indian renewable projects

Pang says no cap on investment

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Pang says no cap on investment

 

AIIB.
Pang bullish on India.

Asian Infrastructure Investment Bank (AIIB) expects to invest as much as US$100 million a year private investor led green energy projects in India and says there is not cap on investment in any country.

“AIIB expects to tap as much as US$100 million green and renewable projects in India from next month,” said its director general of investment departments, Pang Yee Ean at the South Asian Diaspora Convention held in Singapore 15-17 Nov 2019.

Asked about AIIB investment projections, Pang said “We don’t do a country projection for each country, neither do we put a cap on each country (investments).”

Pang is bullish on India. “In a month’s time you will see approval of projects in the Renewable Energy sector.”

“We should be consistently doing wind and solar projects up to US$100 million each year… I would say each year there would be a US$100 million in the private sector for renewable projects.”

“More importantly, some of these projects are by the private sector,” he said, underlining the importance of private investment to build resilience in infrastructure development.

He also sees private investments in these projects as foreign direct investment into India which relieves the government from project financing challenges.

Pang sees India as a vibrant private sector market, saying that private investments validate business models of infrastructure and ensure it is economically sustainable.

He conceded that AIIB was a later boomer in the renewable energy sector but assured that in the coming years more can be expected from the bank, which has till date invested US$2.844 billion in Indian projects.

There will always be a steady stock of projects in the infrastructure – roads, rural connectivity, water supply and sanitation among others. “These are stable stock of projects,” he emphasized on the sideline of the convention organized by the Institute of South Asian Studies, a think tank of National University of Singapore.

AIIB projects in India:

Mumbai Urban Transport Project 3 US$500 million;
AP Rural Roads Project US$455 million;
AP Urban Water Supply Project US$400 million;
Bangalore Metro Rail Project US$335 million;
Gujarat Rural Roads Project US$329 million;
Andhra Pradesh 24×7 Power for All Project US$160 million;
Madhya Pradesh Rural Connectivity Project US$140 million;
L&T Green Infrastructure On-Lending Facility US$100 million;
Transmission System Strengthening Project US$100 million;
Tata Cleantech Sustainable Infrastructure On-Lending Facility US$75 million;
Indian Infrastrucure Fund US$150 million;
National Investment and Infrastructure Fund Phase I US$100 million. fiinews.com

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