AFD signs 3.5 million € Grant Facility Agreement with Government of India

French Development Agency (AFD) signs 3.5-million-euro Grant Facility Agreement with Government of India for implementing the MobiliseYourCity initiative financed by the European Union in favor of sustainable urban mobility.

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French Development Agency (AFD) signs 3.5-million-euro Grant Facility Agreement with Government of India

New Delhi, 9 June 2017

The Government of India, represented by Mr. Selvakumar, Joint Secretary of the Department of Economic Affairs (DEA), and the French Development Agency (AFD), represented by Mr. Pascal Pacaud, Head of Asia Department at AFD Headquarters in Paris, today signed a Grant Facility Agreement of 3.5 million euros for implementing the MobiliseYourCity initiative financed by the European Union under its Asia Investment Facility (AIF). The signing took place in the presence of Ms. Claire Thuaudet, Deputy Chief of Mission, Minister Counsellor, Embassy of France to India, and Mr. Tomasz Kozlowski, Ambassador of the European Union to India.

Speaking on the occasion, Ambassador Kozlowski said, "Investments in energy, water, waste, climate and smart cities are investments in sustainability and address priorities under the flagship programs of the Indian government. They are part of our strategic partnership between the EU and India as was emphasized again by European and Indian leaders during Prime Minister Modi’s recent visit to Europe."

Mr Pascal Pacaud, Head of Asia Department at AFD Headquarters in Paris, said, “AFD brings financings to its Indian partners for development projects. The grants delegated to AFD by the European Union under the Asia Investment Facility enable AFD to bring additional value to its partners by implementing technical assistance and capacity building programs.”

Ms Claire Thuaudet, Deputy Chief of Mission, Embassy of France to India, said, “I am thrilled that India is one of the very first country to benefit from the MobilizeYourCity initiative. France and India share a vibrant commitment to the fight against climate change and the implementation of Paris Agreement - it was strongly reaffirmed by President Macron and Prime Minister Modi during their meeting in Paris on 3rd June.”

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French Development Agency (AFD) signs 3.5-million-euro Grant Facility Agreement with Government of India

Implementation of the international initiative MobiliseYourCity in Nagpur, Kochi and Ahmedabad for a more sustainable urban mobility

MobiliseYourCity (MYC) is part of an international initiative supported by the French and the German Governments. It was launched at Paris’ 21st Conference of Parties (COP21) in December 2015. With the support of a coalition of international partners (development agencies, urban and transport planning agencies, NGOs), MYC seeks to back 100 cities engaged in sustainable urban mobility planning to reduce greenhouse gas emissions worldwide.

On 20 November 2015, based on a proposal made by AFD, the Asian Investment Facility (AIF) Operational Board issued a favorable opinion on the proposed contribution of EUR 3.5 million financed by the EU budget to contribute to specific investment and technical assistance components within the MobiliseYourCity initiative in India. Playing a major role in the fight against climate change, India is one of the very first countries to benefit from this initiative.

In India, MYC aims at supporting three pilot cities (Nagpur, Kochi and Ahmedabad) in their efforts to reduce their GHG emissions related to urban transport and at helping India to improve their sustainable urban transport policy. To do so, MobiliseYourCity provides a methodological framework, capacity building and technical assistance to the local and national governments. The initiative will be implemented by the Ministry of Urban Development (MouD). AFD will be monitoring the initiative and ensuring compliance with AFD’s and EU’s due diligences.

Reducing transport sector related GHG emissions while developing more inclusive, livable and economically efficient cities

In Indian cities, demographic trends, combined with the rising living standards of the middle class, have led to an exponential increase in the number of personal vehicles and therefore to congestion and pollution challenges. Urban transport accounts for around 20% of energy-related CO2 emissions in India and transport sector related GHG emissions are projected to double by 2050.

In order to reconcile urban development and the fight against climate change, the Government of India has taken many steps to promote low carbon urban passenger transport - mass urban transport systems, mainly metros, are being constructed in the largest cities - and is now taking a step further to implement low carbon mobility plans.

MobiliseYourCity will enable transformational changes towards a less carbon intensive development path in the urban mobility sector and materialize them into locally planned measures, projects and policies. The project’s main focuses are:

  • Improving Comprehensive Mobility Plans in Nagpur, Kochi and Ahmedabad;
  • Adopting a Measure-Report-Verify (MRV) methodology to follow-up the multiple benefits;
  • Registering the benefits at the national level for an easier access to climate finance, notably with registration in the United Nations Framework on Climate Change (UNFCCC) Secretariat.

The expected benefits of MYC include reduced carbon emissions, diminished traffic congestion, better air quality, more inclusive and livable cities, and improved economic competitiveness of these cities by improving logistics and access to jobs, basic services, education, etc.

A new cooperation between France and India for sustainable urban mobility in India

With this new financing, which extend the agency’s operations in the sector of sustainable mobility in India, AFD has notched up more than 800 million euros in total contribution. AFD finances phases I and II of the Bangalore metro, phases I and II of the Kochi metro and the construction of a metro line in Nagpur. AFD also supports Kochi and Chandigarh through a technical assistance program for the development of a comprehensive vision of urban mobility.

This signing took place during the 9th Annual Consultation Meeting between the Ministry of Finance, represented by its Department of Economic Affairs (DEA), and the French Development Agency (AFD).

About Agence Française de Développement (AFD)

AFD, a public financial institution that implements the policy defined by the French Government, works to combat poverty and promote sustainable development. AFD operates on four continents via a network of 75 offices and finances and supports projects that improve living conditions for populations, boost economic growth and protect the planet. In 2016, AFD earmarked EUR 9.4bn to finance projects in developing countries and for overseas France.

About European Union

The EU, which consists of 28 countries, has the world’s largest economy and its third largest population, after China and India. Though richly diverse, the countries that make up the EU (its ’Member States’) are all committed to the same basic values: peace, democracy, the rule of law and respect for human rights. They have set up common institutions so that decisions on matters of joint interest can be made democratically at European level. By creating a frontier-free single market and a single currency (the euro) which has been adopted by 19 Member States, the EU has given a significant boost to trade and employment. It is also at the forefront of policies on sustainability.

For over 50 years the EU and India have worked together to reduce poverty, expand trade, and promote joint research in energy, health, agriculture and many other fields of mutual interest.

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About Asia Investment Facility (AIF)

The AIF has been created to provide EU grant support for lending operations by European, incl. Member States’, development finance institutions. The objective is to combine European Union grants with loans from EU and its Member States financial institutions in order to finance large investment projects in the North, South and South-East Asia region. The AIF targets the following sectors: energy, environment, social infrastructure and the private sector.


Last modified on 26/06/2017

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