Greater Visakhapatnam Municipal Corporation and IFC Partner to Drive Resilient Urban Development

Mumbai, September 8, 2025-In a first-of-its-kind initiative to improve sanitation infrastructure, and promote environmental sustainability in Visakhapatnam, IFC has committed an investment of up to $60 million in the form of Rupee-based Non-Convertible Debentures (NCDs) to the Greater Visakhapatnam Municipal Corporation (GVMC). This is IFC's maiden municipal financing in India and the first investment by a development finance institution to a city, without a sovereign guarantee.

Visakhapatnam, Andhra Pradesh's largest city and one of India's fastest-growing urban centers, is experiencing rapid growth, particularly in the Madhurawada region, which is emerging as a hub for sustainable urban infrastructure.

This includes the Madhurawada Sewerage System that encompasses a sewage collection network, pumping stations, lift stations, and a wastewater treatment plant. This comprehensive system will provide modern, reliable sanitation services that improve the quality of life for residents, reduce health risks, and address pollution caused by untreated wastewater-a challenge in fast-expanding urban areas.

"This collaboration with IFC is a transformative step not just for Visakhapatnam but for urban India as a whole. It signals to the world that Indian cities, when financially disciplined and administratively progressive, can attract global investments without sovereign guarantees. The Madhurawada project is more than a sewerage system-it represents a forward-looking model of sustainable urban growth, resilience, and self-reliance. Our vision is to create a city that is not only cleaner and healthier but also sets a precedent for other cities aspiring to modernize with global standards of financing and governance," said Sri S. Suresh Kumar, IAS, Principal Secretary to Government, Municipal Administration & Urban Development Department.

"IFC stands ready to support cities in advancing their development agenda. Innovative commercial financing can unlock massive urban transformation, and our partnership with Visakhapatnam is proof of this. In a first for IFC and an Indian city, a municipality is mobilizing private capital from a development finance institution without a sovereign guarantee to deliver essential services-from wastewater and sanitation to transport and solid waste management-affordably and sustainably. This financing will help protect the city's coastline, create jobs, and set a new benchmark for resilient and low-carbon growth. It is a powerful example of how the World Bank Group helps cities stretch scarce public funds to attract global private investment. What India is pioneering today can inspire cities everywhere to build future-ready urban spaces," said Makhtar Diop, Managing Director of IFC.

By 2030, Indian cities are expected to generate 70 percent of new jobs, highlighting the urgent need for resilient urban infrastructure development. Mobilizing commercial capital enables municipalities to expand access to essential services and helps strengthen financial discipline, governance, and transparency, while encouraging revenue growth. Reaching the estimated $2.4 trillion required to build low-carbon, climate-resilient infrastructure by 2050 will depend on critical and concerted private sector participation.

The partnership is aligned with the Government of India's Urban Challenge Fund (UCF), which aims to mobilize $2.35 billion annually in private and commercial capital for the next decade. It is also part of a World Bank Group initiative to enhance fiscal space for cities by leveraging scarce public funds to mobilize private capital. As one of five pilot countries, India is taking an early lead with this investment in GVMC.

IFC provided advisory services to GVMC under its Utilities for Climate (U4C) platform on treatment plant technologies, project phasing, and operational design.

Having worked with 47 governments and cities, committing close to $4.5 billion-including mobilization of $1.8 billion-to expand access to electricity, water, and sanitation while driving job creation, IFC is now bringing the scale of its global expertise to GVMC.