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Wednesday, October 30, 2013

AIIB Approves First Loan to India for $160 million to Support Power Sector

The Bank’s first project in India backs Power for All program


The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) approved a loan of US$160 million in support of the Andhra Pradesh – 24x7 Power for All project in the Republic of India with the objective to strengthen the power transmission and distribution system in the State of Andhra Pradesh. 

The Project is part of the Government of India’s Power for All program that was launched in 2014 to provide an efficient, reliable and affordable electricity supply to all consumers across selected states within five years from the start of implementation of the program in each state. Andhra Pradesh is one of the first states selected for the rollout of the Power for All program. 

Jin Liqun, President of AIIB, noted that "AIIB supports its members in their transition towards a low-carbon energy mix by promoting the improvement of energy efficiency, such as upgrading the existing transmission and distribution networks. I am delighted that AIIB is working closely with India, who is our second largest shareholder, in energy and other infrastructure sectors, and we expect the Andhra Pradesh – 24x7 Power for All project to be the first of many projects AIIB invests in India." 

"The Power for All program in Andhra Pradesh will be the starting point for AIIB to extend its assistance to other countries in Asia moving towards an ‘Energy for all’ initiatives, "said D.J. Pandian, Vice President and Chief Investment Officer, AIIB. "This aligns well with AIIB’s mandate to promote economic development in Asia by helping build reliable and stable energy distribution systems." 

The project aims to support the implementation of the 24x7 Power for All plan in the State of Andhra Pradesh by strengthening the transmission and distribution network, increasing network capacity, improving system reliability and supporting operational reforms to improve the commercial performance of the state’s distribution companies. It will directly contribute to the economic development of the State of Andhra Pradesh and India by increasing delivery of reliable, grid-based electricity to households, business and the agricultural sector. The project is co-financed with the World Bank. 

Additional details on this project and upcoming projects may be found at www.aiib.org/en/projects

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