UK, India launch major infrastructure financing bridge to strengthen ties
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The United Kingdom and India have officially launched the United Kingdom-India Infrastructure Financing Bridge (UKIIFB), a new initiative designed to strengthen collaboration in the financial and professional services sectors, according to an official press release from the City of London.
This agreement, signed by the City of London Corporation and NITI Aayog, aims to channel sustainable infrastructure investments into India, leveraging the UK’s expertise in managing and structuring large-scale projects.
A key part of the UKIIFB is the recently announced Steering Committee, which includes representatives from several prestigious organisations including HM Treasury, Aon, Arup, Mott MacDonald, Clifford Chance and Sequoia Investment Management Company.
This committee will oversee the implementation of the initiative, with a focus on projects such as national highways, regional rapid transport systems and renewable energy projects.
The Steering Committee will work on several objectives, including accelerating the mobilization of international private investment in Indian infrastructure, making policy recommendations to address investment barriers, and developing best practices for sustainable infrastructure projects.
Expressing his excitement about the partnership, Chris Hayward, Policy Chairman of the City of London Corporation, said: “I am delighted to sign the UK India Infrastructure Financing Bridge and welcome a new chapter in the extensive business relationship between our two countries. The UK’s expertise in professional services, finance and scaling up major projects makes it a natural partner to meet India’s growing infrastructure needs, demonstrating the City of London’s position as a global city.”
Highlighting the importance of the UKIIFB, BVR Subrahmanyam, CEO, NITI Aayog, said, “The UK India Infrastructure Financing Bridge (UKIIFB), jointly announced by the Finance Minister of India and the Minister of Finance of the United Kingdom, represents a major collaborative effort led by NITI Aayog and the City of London.”
“This initiative underscores the commitment of both countries to work together in unlocking major infrastructure investment opportunities in India. This is a game-changer that will not only accelerate India’s economic rise but also strengthen its position on the global stage. It is not just connecting the two countries; it connects India with its aspirations to become a global superpower,” he continued.
Vikram Doraiswamy, the High Commissioner of India to the UK, said: “The team at the High Commissioner welcomes the establishment of this financing bridge today. This structure, announced as a target at the last India-UK Economic and Financial Dialogue in September 2023, is the culmination of over a year of shared effort. The UKIIFB is a striking demonstration of the complementarity of our bilateral economic relationship.”
Industry experts also weighed in on the partnership. Simon Harris, Managing Director for International Development Services at Mott MacDonald, commented: “Investment in climate-resilient infrastructure will play a key role in supporting India’s rapid economic and social development. The United Kingdom-India Infrastructure Financing Bridge (UKIIFB) is an excellent opportunity for investors to work with India’s project leaders to accelerate investable and sustainable infrastructure development.”
Arup’s Sowmya Parthasarathy added: “Infrastructure is the foundation for India’s economic growth. Today’s announcement of the United Kingdom-India Infrastructure Financing Bridge (UKIIFB) comes at a pivotal time.”
Mark Courtneidge of Aon UK and Anurag Gupta of Sequoia Investment Management Company also expressed their support, highlighting the potential of the UKIIFB to facilitate significant infrastructure improvements in India.
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First publication: 05 Sep 2024 | 22:31 IST