India Bhubaneswar Affordable Housing

Supporting the development of Odisha’s first affordable public-private housing development

Challenge

Home to 42 million people, the state of Odisha in eastern India is one of its poorest and most populous. Odisha has seen rapid urban growth, but a shortage of affordable homes, particularly in the state capital Bhubaneswar, has led to 23% of the population living in slums, including 10% to 15% of children. The Government of Odisha’s Policy for Housing for All in Urban Areas 2015 supports development of affordable homes, and the Bhubaneswar Development Authority (BDA) has a target to deliver 10,000 affordable homes for low income families in Bhubaneswar by 2020.

Solution

To address Bhubaneswar’s housing shortage, the International Finance Corporation (IFC) was appointed to develop Odisha’s first affordable housing PPP. Funded by DevCo, the IFC worked with the BDA to develop a unique transaction and competitive tendering process to deliver the project, which aligned with changes to national real estate legislation. It was awarded to a consortium comprised of Shyam Indus Power Solutions and GSBA Builders, which signed an eight year development agreement to design, finance, construct and hand back 2,600 affordable homes for the BDA to sell to lower income families. The developers will be given 13.5 acres of land for the affordable housing, free of charge, plus freehold on an additional 6.5 acres which can be developed for higher income residential homes.

Impact

The new houses are estimated to provide affordable homes for up to 15,000 people in poor areas of Bhubaneswar, providing families with shelter, security and modern sanitation. The developers are required, under the terms of the agreement, to support lower income groups to access appropriate mortgages. To ensure build quality, the developers retain responsibility for correction of any structural defects for five years after the houses are handed back to the BDA and commit to creating a maintenance account to finance future upkeep and repairs.

By funding the development of standardised documentation, DevCo's support for the scheme will enable the Government of Odisha to implement similar affordable housing initiatives in the future. The Bhubaneswar transaction has a potential demonstration effect for other cities in south and east Asia struggling to accommodate growing urban populations.

 

Affordable homes will reduce the number of people living in the capital's slums

DevCo has supported India's first PPP in affordable housing

Zambia Scaling Solar

Funding advisory support to scale up solar access

Zambia’s increasing demand for electricity and the impact of droughts on hydropower production led to a 560MW supply deficit, resulting in frequent power outages and reduced supply to the mining industry. To diversify Zambia’s energy mix, the Government of Zambia joined the DevCo-supported World Bank Group Scaling Solar programme in 2015. Scaling Solar provides a standardised independent power producer procurement process, supporting governments of low-income countries to develop bankable solar projects using PPPs. With funding from DevCo and international donors, the International Finance Corporation provided advisory support for two Zambian solar PPPs. DevCo’s support enabled the IFC to conduct site selection, due diligence and oversight of a competitive tendering process which attracted private developers, Enel Green Power and a consortium of Neoen and First Solar, to deliver two new solar plants, totalling 75.7MWp, with Neoen / First Solar offering the lowest tariffs in sub-Saharan Africa at the time.

Scaling Solar programme will bring affordable, clean energy to countries across Africa

Annual Report
2017