Uttarakhand Power Sector Investment Program (Tranche 4 and Multitranche Financing Facility)

Compared to project-based lending, the choice of MFF as a
modality is likely to risk decreasing the level of due diligence and scrutiny undertaken at the
approval of single tranches. This needs to be considered as a downside of the MFF modality in
general. A more thorough due diligence stage needs to be foreseen before approving single
tranches, not only at the MFF appraisal level.