ADB and NaBFID signed LoI to address India’s Infrastructure Funding Gap

Current Context: The Asian Development Bank (ADB) and India's National Bank for Financing Infrastructure Development (NaBFID) signed a Letter of Intent (LoI) on December 12, 2024, to address the substantial funding gap in India's infrastructure sector.

• Here are some key points about the collaboration:
• Technical Assistance Grant: ADB will provide NaBFID with a technical assistance grant to build its capacity and enhance its climate finance capabilities.
• Credit Lines: The collaboration includes offering credit lines through ADB-facilitated private sector investments to support innovative projects that foster sustainable and inclusive growth.
• Sustainable Development: The partnership aims to enhance climate resilience, improve urban and rural infrastructure, promote environmental sustainability, and mobilize both public and private investments.
• Seminar and Meetings: ADB and NaBFID co-hosted a seminar to emphasize the critical role of infrastructure financing in achieving resilient and sustainable growth. Technical bilateral meetings were also held to explore avenues for collaboration and knowledge sharing.

Question:

1. What type of support will ADB provide to NaBFID as part of the collaboration?

• A) Financial subsidies for rural infrastructure
• B) Technical assistance grant
• C) Direct equity investments
• D) Loan guarantees for small businesses

Answer: B) ADB will provide NaBFID with a technical assistance grant to enhance its capacity and improve climate finance capabilities.