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Capacity Building for Commercial Bank Lending for Solar Energy Projects: Technical Assistance Completion Report

sector: Energy, Finance | country: India

The second component of the TA or technical assistance (technical due diligence support) was linked to the Solar Power Generation Guarantee Facility. Only banks selected as partner commercial banks under the Solar Power Generation Guarantee Facility were eligible to avail of the technical due diligence support (i.e., NordBank LB of Singapore and L&T Infra Finance of India). Local commercial banks had certain concerns regarding the facility including disagreement on pricing of the guarantee facility. As a result many local banks were reluctant to sign up as partner commercial banks under the guarantee facility and were unable to avail of the technical due diligence support under the TA. Delinking the TA from the solar guarantee facility would have increased the utilization of the technical due diligence support component of the TA and provided for broader knowledge sharing across the banking community, irrespective of their need for credit support from ADB.

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