IFC has played a pivotal role in helping IIEL develop and structure a sound and comprehensive environmental management system (EMS). The EMS would comprise innovative features such as the establishment of an environmental advisory board (EAB) to ensure that IIEL equipment is not provided to projects which do not meet minimum environmental criteria. The EAB would comprise of independent environmental specialists who can inform IIEL management on controversial projects and give advise on how to handle potential environmental issues. IIEL’s adoption and use of the EMS is expected to have a strong demonstration effect in terms of encouraging Indian contractors and project promoters to focus on better environmental practices. Contractors and project promoters who are less stringent on environmental requirements, would have to rely on more expensive financing methods to get access to the equipment, which could result in higher project costs and/or non-competitive bids.

IFC has also played a significant advisory role in helping the sponsors refine and elaborate the project concept, develop a robust financial structure, and identify and structure risk mitigation mechanisms. Moreover, IFC has actively assisted IIEL in its efforts to sell the project concept to other international financial institutions. IFC’s presence as an investor will further help IIEL attract other investors and sources of funding.