This case study explores the Viability Gap Funding (VGF) financing instrument provided by the Technical Assistance Facility (TAF) to the Private Infrastructure Development Group (PIDG) project development and financing facilities. VGF helps PIDG facilities offset part of the up-front preparation costs of pro-poor private infrastructure investments in challenging environments that prevent projects towards attracting debt financing and hence reaching financial close. To illustrate how VGF is operationalised this case study analyses VGF provided by TAF to the InfraCo Asia Development supported project of Coc San hydropower plant in Vietnam. This case study illustrates key challenges and opportunities of PIDG facilities using TAF VGF funding associated with the complexity and high risk nature of the instrument.
Case study: Coc San Hydro Plant Viability Gap Funding
This work was carried out under the Infrastructure and Cities for Economic Development (ICED) facility.
ICED supported DFID country offices, central teams and ODA-spending Other Government Departments to deliver DFID’s Economic Development Strategy by scaling up programming and investment in infrastructure and cities. It operated between February 2016 and July 2019.
