The Rockefeller Foundation, IFC to Create New Project Development Facility for Resilient Infrastructure
The Rockefeller Foundation / December 19, 2014 / Press Releases
WASHINGTON—The Rockefeller Foundation and IFC, a member of the World Bank Group, are launching a project development facility aimed at unlocking private sector investment for infrastructure that helps build resilience across emerging markets.
Global institutional investors are keen to invest in infrastructure, but there aren’t enough well-structured projects. The major challenge lies in the early stages of project development. Often, governments lack the capacity to structure, negotiate, and manage complex infrastructure transactions. This is a critical bottleneck that delays and often stalls the development of projects. As a result, not enough projects are coming to market.
The Rockefeller Foundation is committing $10 million to this new facility. The facility will provide grant funding to support legal, technical, and financial advice to governments working with IFC on infrastructure projects that help cities build resilience and support poor and vulnerable people. This will accelerate the development of projects, and increase the number of bankable projects that reach financial close. The Foundation and IFC will aim to jointly raise an additional $40-$90 million from other partners, which could help the development of up to 80 medium-to-large scale projects globally.
“Governments often need sound advice to navigate complex agreements when they work with private sector companies to develop infrastructure projects,” said Karin Finkelston, IFC’s Vice President for Global Partnerships. “This partnership provides a crucial link that can help accelerate the development of bankable infrastructure projects across the world.”
This facility is part of a broader collaboration effort between The Rockefeller Foundation and the World Bank Group to expand financing solutions for resilience and infrastructure across emerging markets.
“Rapid urbanization, globalization, and the rise of extreme weather events are giving rise to a new set of shocks and stresses that threaten our collective wellbeing, so it is critical that we invest in infrastructure that builds resilience,” said Dr. Judith Rodin, President of The Rockefeller Foundation. “We are delighted to be working together with IFC to create more bankable infrastructure projects that build resilience and help communities that are particularly susceptible to associated shocks and stresses.”