Bihar Urban Infrastructure Development Fund Trust

Total Urban Population as per 2011 Census in Bihar has increased to 11.5% from 10.5 % as per 2001 Census. The total urban population as per 2011 Census in Bihar is about 1.17 crores. This increasing trend towards urbanisation is likely to gain momentum in future years as per projections of urbanisation in the country by several agencies. However, the Urban Local Bodies (ULBs) are not able to meet aspirations of urban citizens as regards quality of municipal services mainly due to woefully inadequate infrastructure in urban areas.

Hence, The Government of Bihar (GoB), through its Bihar Urban Infrastructure Development Corporation (BUIDCo) has set up Bihar Urban Infrastructure Development Fund (BUIDF) to develop a long term state led market driven sustainable urban infrastructure financing mechanism. Under the BUIDF, three Funds namely an Urban Loan Fund (ULF), a Grant and Credit Enhancement Fund (G&CEF) and a Project Development Fund (PDF) are sought to be managed by BUIDF Trust with assistance of a Project Management Unit (PMU) set up by a partner organisation / consortium (AMC) that would be competitively selected through this bid process.

The primary objective of creating BUIDF is to progressively increase external financing of ULB level capital projects in a sustainable manner, without a state government guarantee. Creation of BUIDF as part of an over-arching Urban Development Program would enable this through a) catalysing development of well-structured bankable projects, b) building capacity in project appraisals and resource mobilization and c) facilitating/incentivizing State and ULB level reforms that can be pre-cursors for further investment flows.