IFC Helps Support Higher Education Needs for Underserved in Gujarat, India

IFC Helps Support Higher Education Needs for Underserved in Gujarat, India

IFC, a member of the World Bank Group, is helping the Indian state of Gujarat develop an educational project to address higher education needs in the state's underserved areas.

IFC has been appointed as the lead transaction adviser by Development Support Agency of Gujarat, an autonomous state body, to set up the higher education project through public-private partnerships. This is a follow-up to the Memorandum of Understanding that IFC had signed with the state government last year announcing the higher education project.

Under the mandate, IFC will be working with Development Support Agency as well as the Hemchandracharya North Gujarat University, the nodal agency for the project. IFC will help structure a framework to attract private partners to develop and operate a higher education institution. The proposed institution is expected to make higher education accessible to 1000 students every year within five years of project completion.

Gujarat has been a leader in infrastructure reforms in India and an attractive destination for private investment. Estimates indicate the state has the potential to generate 20 million jobs by 2020 in agriculture, agribusiness, housing, health, financial services, and small and medium enterprise sectors.

To build the necessary skilled workforce to undertake these jobs, Gujarat still needs significant support from private sector to augment its education infrastructure.

The proposed institution will offer professional courses in science, technology and other relevant areas with the overall objectives of meeting the strong demand for higher education, and facilitating development of entrepreneurs.

Vipul Bhagat, Head for IFC's Infrastructure Advisory in South Asia, said, "We have extensive experience in assisting governments in designing public-private partnership projects, including in sustainable education. The Gujarat project can provide a model for similar ventures in India and the region going forward." IFC recently assisted a similar public-private partnership project that is progressing successfully in Botswana.

IFC is the world's largest multilateral investor in the private education sector in emerging markets and has committed more than $400 million in 60 projects in 29 countries. Of all education projects signed from 2006 through 2009, 60 percent were in the world's poorest countries. When advising governments on implementing public-private partnerships, IFC helps structure projects, selects and manages external specialized consultants, and markets business opportunities to investors.

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