MUMBAI: BMC is looking to appoint a project implementing agency to help it develop a broader financing strategy and mobilise funds through alternative sources for its growing infrastructure requirements, including water supply, wastewater, sanitation and urban infrastructure projects.The move comes as the BMC’s committed liabilities are are over Rs 2 lakh crores with major infrastructure projects like the Mumbai Coastal road -north, twin tunnels for Goregaon Mulund Link Road and the upgradation of sewage treatment plant underway.The civic body has invited e-tenders for an agency that will provide financial strategy, debt management and institutional coordination support, including identifying and structuring alternative financing options.According to the tender issued by the BMC’s Chief Accountant (Finance) on September 21, the selected agency will prepare a Capital Investment Plan (CIP) and a Debt Management Policy (DMP) and help the civic body mobilise funds through multiple financing instruments.The tender document states that BMC’s infrastructure requirements are growing in scale and complexity, creating a need to strengthen and diversify its financing capacity. The agency will be expected to identify projects that can attract financing, advise on financial structuring and help BMC access long-term capital on competitive terms.The proposed financing strategy will cover seven broad areas, including capital markets, climate and carbon finance, development finance, government support mechanisms, innovative and blended finance, and revenue enhancement measures.The agency will also advise BMC on municipal bonds, including green, sustainability, social and sustainability-linked bonds. Its mandate will include identifying opportunities for carbon credits, certification and monetisation, as well as helping the civic body access Central and state government grants, subsidies, low-interest loans and other schemes.BMC officials said it is separately in the process of appointing merchant bankers and other transaction intermediaries for specific assignments, including bond issuances. The proposed agency will therefore work alongside these intermediaries and provide end-to-end advisory, handholding, structuring and coordination support.An important part of the agency’s mandate will be to provide day-to-day support to BMC officials in their interactions with merchant bankers and other financial intermediaries, while also helping identify and structure additional sources of finance.“The agency will also assist the BMC Finance Department in preparing financial presentations, briefing notes and talking points for meetings with state government departments, external delegations, domestic and international study tours and apex bodies, including the 15th and 16th Finance Commissions,” states the tender document.
