Previous Year Question
The Global Infrastructure Facility is a/an
ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank.
World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilisation of private sector and institutional investor capital.
Collaboration among the major banks of the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilise private investment.
UNCTAD-funded initiative that seeks to finance and facilitate infrastructure development in the world.
Correct Answer: B
Detailed Solution
The Global Infrastructure Facility—GIF is a global collaborative platform hosted by the World Bank Group. It assists developing countries and emerging markets in preparing and structuring complex infrastructure projects so that they can attract private-sector and institutional-investor capital.
Therefore, option (b) is correct.
The World Bank Group launched the GIF on 9 October 2014 as a G20-associated initiative. It was created because developing countries faced a substantial infrastructure-investment requirement, but many projects could not attract private capital because of:
Inadequate technical preparation.
Unclear revenue models.
Inappropriate allocation of risks.
Weak legal and regulatory frameworks.
Environmental and social risks.
Shortage of early-stage project-preparation finance and expertise.
The GIF does not normally finance the entire construction cost of an infrastructure project. Its principal function is to make projects bankable and investment-ready. Its support may include:
Feasibility studies and demand assessment.
Financial and economic analysis.
Designing the PPP structure and contractual framework.
Appropriate allocation of risks between public and private partners.
Assessment of environmental and social requirements.
Transaction advisory services and preparation of tender documents.
Connecting projects with institutional investors and private finance.
The GIF brings together the World Bank, Multilateral Development Banks, governments, Development Finance Institutions and private investors. It does not aim to completely replace public finance; it seeks to use limited public resources to mobilise additional private capital.
The remaining options are incorrect because:
GIF is not an ASEAN initiative and is not financed exclusively through ADB credit.
It is not simply a collaboration of major commercial banks working with the OECD.
It is not funded or administered by UNCTAD.
It is primarily a project-preparation and structuring platform, rather than a general fund directly financing every infrastructure project.
Current position (2026): GIF continues to operate as a global collaboration platform for mobilising private investment in sustainable and quality infrastructure in developing countries and emerging markets.
Its principal sectors include:
Transport
Energy
Water and sanitation
Digital connectivity
Urban infrastructure
According to its current official information, GIF is supported by the governments of Australia, Canada, China, Denmark, Germany, Japan, Singapore and the United States, together with the World Bank.
The decisive examination distinction is:
GIF is not an ordinary direct infrastructure-financing fund; it is a World Bank-associated project-preparation and PPP-structuring platform.