UPSC Prelims 2017 · Question 6 of 99
UPSC Prelims 2017 question on Global Infrastructure Facility
- ExamUPSC CSE
- Year2017
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicIndustry
- DifficultyHard
- TypeDirect
The Global Infrastructure Facility is a/an
Show answer
Answer: B. World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital
Verdict
The answer is the World Bank collaboration facilitating preparation and structuring of complex infrastructure public private partnerships.
Analysis
The Global Infrastructure Facility supports governments in bringing well structured and bankable infrastructure projects to market, covering design, preparation, structuring and transaction implementation, and drawing on its technical and advisory partners to build structures capable of attracting a wide range of private investors. Canada co chairs its Governing Council alongside the World Bank Group. The ASEAN, OECD banking consortium and UNCTAD options each attach the facility to institutions with no role in it.
Source
The Hindu report on the Global Infrastructure Facility and India's infrastructure deficit.
How to crack it
Read the word Facility, which in development finance denotes a World Bank hosted vehicle rather than a treaty body or a trade grouping, as it does for the Global Environment Facility and the Forest Carbon Partnership Facility. Then note the specific function described, project preparation, which is the classic gap in infrastructure finance and precisely what multilateral banks exist to fill. Institution type plus function narrows the options before any recall.