1. Financing for Development United Nations Risk Mitigation for Mobilizing Private Sector Investments in Infrastructure in Developing Countries Pradeep Singh President & CEO ILFS Infrastructure Development Corporation India

2. The Paradox Capital in search of Investments with Steady Returns Capital in search of Investments with Steady Returns Great need for Infrastructure Great need for Infrastructure

3. Guarantees as Instruments of Risk Transfer Lenders/Capital Markets Preferred Lenders/Guarantee Providers Government Tax Payers transfer of risk thru guarantee thru counter guarantee thru fiat

4. Risk Management is the Aim of the Game Equity Agreement Loan Agreement Design & Construction Agreement Operation & Maintenance Agreement Concession Agreement Government Dept Investors Lenders Construction Contractors Operations & Management Contractors

5. Project Development is the name of the Game Technical Viability Technical Viability Financial Viability : Rate of Return Financial Viability : Rate of Return Economic Viability : Financial Rate of Return Economic Viability : Financial Rate of Return Adequate Economic Rate of Return Adequate Economic Rate of Return Environmental and Social Management Plans Environmental and Social Management Plans Contractual and Project Implementation Structure Contractual and Project Implementation Structure Conformity to public standards and transparency Conformity to public standards and transparency Appropriateness of the Institutional and Legal Framework Appropriateness of the Institutional and Legal Framework PROJECT DEVELOPMENT BANKABLE PROJECTS BY ENSURING

6. Going Beyond TA Loans and Consultants: Three Examples of Sustainable Project Development Arrangements FIRE (Financial Institutions Reform and Expansion Project), USAID India FIRE (Financial Institutions Reform and Expansion Project), USAID India Institutional Reforms Institutional Reforms Project Development Project Development Water and Sanitation Program, India Water and Sanitation Program, India State level Reforms State level Reforms ULB capacity building ULB capacity building ILFS Infrastructure Development Corporation ILFS Infrastructure Development Corporation Project Development and Promotion Partnerships (PDPPS) with State and Central Governments Project Development and Promotion Partnerships (PDPPS) with State and Central Governments

7. Mitigating Risks through Capacity Building Permanent Secretariat for PPP Goal To create a permanent professional body to provide continuous and competent guidance to the PPP process and various stakeholders Interventions by Multilaterals and other Donors Help create an institutional arrangement that, as per terms of reference provided by government, will undertake the following activities - (1)PPP Framework: establish and continuously update a body of guidelines, policies and processes for decision making, procurement and related issues for PPP projects (2)Legislative Framework: assist in the creation of Legislative Frameworks to guide political and bureaucratic decision making for PPP (3)Training: provide training to government functionaries to improve understanding of optimum risk allocation and of credible PPP structures (4)Project Development: Project Structuring & Risk Management

8. THANK YOU