India, Germany Boost Infrastructure with Innovative Strategies
The Government of India and the German federal government have implemented innovative strategies to boost infrastructure development. The Indian government is employing Viability Gap Funding (VGF) to make projects economically feasible, while Germany is streamlining processes with the Play and Play Model. Both approaches aim to enhance infrastructure resilience and public benefit.
VGF provides a one-time or deferred grant, typically up to 20% of the total project cost, to infrastructure projects that struggle to attract private investment. This funding mechanism is often applied to projects with significant social importance, such as roads, railways, airports, and urban infrastructure. By bridging the viability gap, VGF enables these projects to proceed, benefiting the public.
In Germany, the federal government has introduced the Play and Play Model as part of initiatives like the KRITIS-Dachgesetz to strengthen critical infrastructure resilience and supply security. This streamlined approach obtains all necessary approvals, clearances, and licenses before offering the project to private developers. This model encourages competition and innovation in project implementation, ensuring transparency and efficiency in the procurement process.
Both VGF and the Play and Play Model are designed to overcome barriers in infrastructure development. VGF makes projects financially viable, while the Play and Play Model simplifies project implementation. These strategies aim to enhance public benefit, encourage private investment, and strengthen infrastructure resilience.
