PIMPRI-CHINCHWAD: United Nations Development Programme (UNDP) signed a Memorandum of Understanding with Pimpri Chinchwad Municipal Corporation (PCMC) to create India’s first Social Impact Bond (SIB). With this unique investment tool, PCMC will only have to bear the costs of a public welfare project associated with the SIB given that the pre-defined project targets are fulfilled. This is the first time when a government body will act as an outcome funder in a bond.
The SIB lays down outcome based targets, which are to be achieved at the start of the contract. This allows tracking of the progress achieved and outcomes, thereby ensuring transparency for the investors. The mechanism ensures effective and efficient use of funds towards the projects as well. An official release stated that SIB will support the PCMC in improving healthcare services for its citizens, while incurring minimum investment risks.
Sharan Hardikar, Commissioner, PCMC, commented that the SIB places PCMC at the forefront of adopting innovative mechanisms to drive social development. He said, “This is in line with our vision of making Pimpri-Chinchwad the most liveable city in India by 2030.” Dr Manish Pant, Chief, Health and Governance, UNDP India, added that health plays a critical role in achieving sustainable development. He said, “We hope that this will lead to the development of a successful public healthcare model that will ultimately address the city strategy objectives of PCMC.”