TN govt to appoint eco-consulting firm for KfW-funded projects

CHENNAI: The State is looking to appoint consulting services to hedge climatic risks from physical damage to the infrastructure funded by the German development bank KfW and implemented by the Tamil Nadu Sustainable Municipal Infrastructure Financing (SMIF).

The Tamil Nadu Urban Development Fund (TNUDF) has been planning to outsource a private consultant to conduct a study to develop a concept to hedge residual climatic risks for the physical damages of the infrastructure of the KfW-SMIF projects.

It also suggested that insurance might be one of many instruments that can be used to address risks and should be considered as a part of an integrated risk management approach.

Insurance can play a role in helping to manage the financial risks of losses due to the increasing risk of natural hazards, said an official with TNUDF.

Preparation of a digital portfolio map, climate risk analysis at the project level, climate risk analysis at the portfolio level, disaster risk reduction, analysis of options, and strategies for hedging residual climate risks would be the consultant's key study, said the official.

Since 2008, KfW and TNUDF have been working to promote investment in municipal infrastructure that generates a positive impact on the environment and mobilising private funds for municipal infrastructure in Tamil Nadu.

As part of the program, two-phased projects had been implemented for ecologically sound infrastructure at the municipal level, as well as developing the capital market for municipal bonds.

Especially, the development of new water supply systems and water supply improvement schemes, water systems, climate resilience measures including stormwater management, integrated solid waste management and bioremediation of legacy dumpsites and restoration and improvement of tanks, lakes, rivers, and water bodies.

Now, as TNUDF is implementing the third phase of SMIF to enhance climate resilience and adaptation in urban infrastructure, to improve the urban population's living conditions, it has been decided to rope in a private player to safeguard the infrastructure implemented and infrastructure yet to be implemented from climate risks.