Odisha is a low-income state in India that is facing a housing shortage of 400,000 units for the lower income sections of its population. The public sector alone could not meet a need of this magnitude, and so creating a Public-Private Partnership (PPP) was imperative to scaling up development quickly. The International Finance Corporation (IFC) was the Transaction Advisor, working with BDA to develop a competitive tendering process in alignment with national real estate legislation.
Through this process, developers were given 13.71 acres of land free of charge, with an agreement to design, finance, construct, and hand back 2,600 affordable homes, which BDA will then allocate to lower income families. This project structure is a proof of concept for private sector participation in affordable housing development, and proposals for similar projects are being proposed across India.
Source:
World Bank Group. (2020) Public-Private Partnerships for Investment and Delivery of Affordable Housing in Emerging Market Economies. International Bank for Reconstruction and Development / The World Bank.
Link: https://openknowledge.worldbank.org/handle/10986/34889