Project profile — Investing in Inclusive Infrastructure



Overview 

CA-3-P008544001
$40,000,000
GuarantCo Ltd.
2021-03-30 - 2036-12-11
Operational
Global Affairs Canada
MFM Global Issues & Dev.Branch

Country / region 

• India (10.00%)
• Cambodia (10.00%)
• Côte d'Ivoire (8.00%)
• Vietnam (10.00%)
• Togolese Republic (8.00%)
• Kenya (8.00%)
• Bangladesh (10.00%)
• Cameroon (8.00%)
• Pakistan (10.00%)
• Africa, regional (8.00%)
• Asia, regional (10.00%)

Sector 

• Other Social Infrastructure And Services: Low-cost housing (16040) (10.00%)
• National road maintenance:
National road maintenance (21024) (10.00%)
Rail transport (21030) (10.00%)
• Communication: Telecommunications (22020) (10.00%)
• Energy Generation, Renewable Resources: Energy generation, renewable sources - multiple technologies (23210) (10.00%)
• Solar energy for isolated grids and standalone systems:
Solar energy for isolated grids and standalone systems (23231) (10.00%)
Electric mobility infrastructures (23642) (10.00%)
• Banking And Financial Services: Formal sector financial intermediaries (24030) (10.00%)
• Business And Other Services: Responsible Business Conduct (25040) (10.00%)
• Industry: Agro-industries (32161) (10.00%)

Policy marker 

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (principal objective)
• Participatory development and good governance (not targeted)
• Trade development (not targeted)
• Biodiversity (not targeted)
• Climate change mitigation (significant objective)
• Climate Change Adaptation (significant objective)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Disaster Risk Reduction(DRR) (not targeted)
• Indigenous Issues (not targeted)
• Disability (not targeted)
• Nutrition (not targeted)
• ICT as a tool for development (not targeted)

Description 

This project aims to enhance provision of affordable and sustainable infrastructure services in low-income countries and fragile states to combat poverty and help economies grow. GuarantCo, part of the Private Infrastructure Development Group (PIDG), addresses the shortage of long-term, patient funding, and the lack of local currency infrastructure financing and local capital market development in Africa and Asia. Project activities include: (1) providing expertise and financial services to structure contingent credit solutions, especially guarantees; (2) strengthening gender equality, inclusivity and development impact considerations in project design and (3) enhancing the capacity of local financial stakeholders, investors, and project companies to make investment ready projects. Infrastructure projects often face high perceived or real risks or market constraints, including potential losses from borrowing in foreign currencies, making it challenging to obtain sufficient, long-term debt finance. GuarantCo seeks to bridge the gap between a project’s financial requirements and the financial terms available from the market by using structured guarantees to help transfer risk, and use long-term patient funding. Its activities mobilize additional investment in low-income countries and fragile states towards the Sustainable Development Goals.

Expected results 

The expected outcomes of this project include: (1) increased and / or lower-cost capital flows to infrastructure, including local capital, as a result of more developed local capital markets; (2) enhanced scale, replicability, affordability and transformation of inclusive infrastructure projects that support the Sustainable Development Goals in frontier markets; and (3) enhanced gender equality outcomes and improved development and gender lens for infrastructure investment.

Results achieved 

Since 2017, GuarantCo has provided improved access to infrastructure for over 7 million people in lower income countries across Africa and Asia including more affordable and sustainable energy, housing, digital communications, and transportation - 75% of GuarantCo’s current project portfolio is in local currency. These local currency credit solutions have contributed to the creation of more than 17 thousand short and long term jobs for local residents. For instance, in 2022 GuarantCo provided Bangladesh’s PRAN Agro with a bond guarantee to attract domestic institutional capital and support expansion plans, including land development, construction, storage facilities and processing machinery. The expansion is expected to result in over 20 percent increased sourcing from local farmers, contributing to rural income and food security. The investment into PRAN Agro has also provided much needed job security. The company currently employs 11,000 employees, 67 percent of which are women.

Budget and spending 


Original budget $0
Planned disbursement $0
Transactions
Country percentages by sector
Type of finance Reimbursable grant
Collaboration type Bilateral
Type of aid Project-type interventions
Date modified: