GVMC Becomes First Indian ULB to Secure IFC Funding

Greater Visakhapatnam Municipal Corporation (GVMC) has become the first Urban Local Body (ULB) in India to sign a direct financing deal with the International Finance Corporation (IFC). The agreement is a major step for urban infrastructure development and municipal financing in the country.

The Trust Deed was signed in Vijayawada by GVMC Commissioner Ketan Garg and Ms. Victoria Delmon, Asia Head, IFC. Chief Minister N. Chandrababu Naidu and Suresh Kumar,  Principal Secretary, MAUD, were present at the ceremony on Monday.

Under the deal, IFC will invest Rs 498 crore to upgrade sewerage infrastructure in Madhurawada, one of North Visakhapatnam’s fastest-growing areas. Currently, the city’s sewer network covers 60% of the metropolitan area. Wastewater generation is 225 MLD, exceeding the city’s treatment capacity of 110 MLD. By 2030, this is expected to rise to 620 MLD.

The project will expand 400 km of sewer lines and construct wastewater pumping and lift stations. Household coverage in Madhurawada will rise from 20% to 100%. A new 38 MLD sewage treatment plant (STP) will be built in phases, starting with 20 MLD capacity by 2028 and full capacity by 2043. Around 82,900 households will benefit. Later phases will include wastewater recycling and reuse to save fresh water for industrial and commercial use.

Commissioner Ketan Garg highlighted GVMC’s initiatives in civic services and financing models, including waste-to-energy, waste-to-biogas, wastewater reuse, and listed municipal bonds.

Chief Minister Naidu instructed officials to ensure execution and timely completion of the project to achieve full sewerage coverage across Visakhapatnam.

The signing ceremony was attended by Commissioner Dr. P. Sampath Kumar, GVMC Additional Commissioner S.S. Varma, IFC officials, and other dignitaries. Commissioner Garg called the agreement “a major step towards financial sustainability, improved sanitation, and resilient urban infrastructure for Visakhapatnam residents.”