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Countries and Regions Country Partnership Strategies Document
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Country Strategy and Program Update 2003-2005: India
IV. Country Performance and Lending LevelsA. Lending Level Proposed23. Following the rationale for expanding ADB assistance to India (para. 8), altogether 28 loans are proposed for a total loan amount of $5.9 billion for 2003-2005, or approximately $2 billion per year. The assistance pipeline will increase from about $1.5 billion at present to $1.8 billion in 2003, $1.9 billion in 2004, and $2.3 billion in 2005 (Appendix 1, Table A1.10). The emphasis on growth-mediated poverty reduction requires focusing on infrastructure investments, along with policy and institutional reforms in these sectors to raise productivity, enable efficient growth, and promote private sector development. Interventions in transport, power, and social infrastructure therefore constitute the backbone of ADB’s operational program, along with interventions to support improved public resource management and financial sector reforms. Social dimensions have also been integrated into these interventions. B. Nonlending Program24. The lending pipeline will be supported by ADB nonlending assistance of $16.4 million over the 2003-2005 period. These would include project preparatory TA as well as economic and sector work to support policy reform and build capacity. Project Preparatory Technical Assistance account for $13.2 million (80%) of the total nonlending assistance while economic, thematic, and sector work account for $3.2 million (20%). The latter are targeted to support policy reforms and build institutional capacity, which closely complement the lending program. C. Summary of Changes to Lending and Nonlending Program25. Expansion of the India assistance program from about $1.5 billion per year at present to about $2 billion per year in 2003-2005 has entailed a significant increase in the number of loan projects in 2003 and 2004 compared to the previous country strategy and programme update, as well as reprioritization of existing projects. The new loan projects in 2003 include Renewable Energy Development, Kolkata Clean Fuel, Gas Pipeline Infrastructure, Modernizing Government and Fiscal Reforms in Kerala (II), Chhattisgarh State Roads, Rural Roads Sector Development, Inland Waterways Sector Development I and a TA Loan for Transport Program Preparation. The new loans for 2004 include Hydropower Development I, Assam Power Sector Development, Central Power Distribution, Assam Governance and Public Resource Management, Rural Financial Sector Restructuring and Development, and Electronic Governance and Information Communication Technology Infrastructure Project. Meanwhile, in view of the poor progress of ongoing projects in Gujarat, two new projects in the state have been dropped: Public Resource Management Program (Gujarat) II and Power Sector Development Program (Gujarat) II. Subregional Transport Connectivity (formerly West Bengal Corridor Development II) and Integrated Urban Development in Madhya Pradesh have been rescheduled from 2003 to 2004, while Rural Electrification and Kerala Urban Sector Development Program (formerly Urban Development and Environmental Improvement and Poverty Reduction in Kerala) have been rescheduled from 2004 to 2005. Finally, based on detailed discussions with the concerned agencies, loan amounts have been revised from $250 million to $300 million for three projects: National Highway Corridor II, National Highway Corridor III, and Integrated Urban Development in Madhya Pradesh. In line with these changes in the loan program, there are corresponding adjustments in the TA program.
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