The Private Infrastructure Development Group (PIDG), through its Technical Assistance Facility (TAF), offers Viability Gap Funding – an innovative financing instrument designed to offset part of the up-front preparation costs of pro-poor infrastructure investments in challenging environments. TAF provides technical assistance and capacity building to the PIDG facilities to make their projects commercially viable. An example of how the Viability Gap Funding financing instruments can work in practice is provided by the Coc San Hydropower project in Vietnam, which was revitalised following a US$5 million grant by TAF in 2013.
Case summary: Viability Gap Financing, Vietnam
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.
