Mon Sep 08 15:45:44 UTC 2025: **News Article:**
**Visakhapatnam Secures Landmark $60 Million Investment for Sanitation Project**
**Amaravati, Andhra Pradesh – September 8, 2025** – The Greater Visakhapatnam Municipal Corporation (GVMC) has secured a groundbreaking investment of up to $60 million (₹498 crore) from the International Finance Corporation (IFC), a member of the World Bank Group, to fund the Madhurawada Sewerage System Project. The agreement, formalized today at the AP Secretariat in Amaravati, marks the first time IFC has directly financed a municipal project in India without a sovereign guarantee.
The investment, in the form of Rupee-denominated Non-Convertible Debentures (NCDs), will be used to develop a comprehensive underground sewerage system in the rapidly growing Madhurawada Zone of Visakhapatnam. This area, experiencing rapid urbanization and a surge in population, has been struggling with inadequate sanitation infrastructure, leading to environmental degradation, public health risks, and increased vulnerability to flooding.
“This collaboration with IFC is a transformative step not just for Visakhapatnam but for urban India as a whole,” said S. Suresh Kumar, Principal Secretary to the Government, Municipal Administration & Urban Development Department. “It signals to the world that Indian cities, when financially disciplined and administratively progressive, can attract global investments without sovereign guarantees.”
IFC Managing Director Makhtar Diop hailed the partnership as a benchmark for resilient and low-carbon growth. “Our partnership with Visakhapatnam shows how municipalities can mobilise private capital to deliver essential services affordably and sustainably without sovereign guarantees. This first-of-its-kind municipal financing will help protect the city’s coastline, create jobs, and set a new benchmark for resilient and low-carbon growth.”
GVMC Commissioner Ketan Garg expressed his pride in Visakhapatnam’s pioneering role. “This is a defining moment for Visakhapatnam,” he said. “By partnering with IFC, we are addressing one of the most critical challenges of urbanisation, i.e., sanitation, in a way that is financially sustainable and environmentally responsible. Visakhapatnam is proud to be the first city in India to access global development finance directly.”
The project is expected to significantly improve sanitation, reduce public health risks, protect water resources, and mitigate urban flooding in the Madhurawada Zone, benefiting its 2.5 lakh residents and contributing to the sustainable development of Andhra Pradesh’s largest city. The signing ceremony was attended by several key officials from the government and financial institutions.
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