India: MFF - Second India Infrastructure Project Financing Facility (IIPFF-II)

Sovereign Project | 41036-013



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Project Name MFF - Second India Infrastructure Project Financing Facility (IIPFF-II)
Project Number 41036-013
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0037-IND: MFF - Second India Infrastructure Project Financing Facility (IIPFF II)
Ordinary capital resources US$ 700.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Multisector - Multisector

Gender Equity and Mainstreaming No gender elements
Description tbd
Project Rationale and Linkage to Country/Regional Strategy

Infrastructure is a critical determinant of productivity-inclusive of development, national integration, and poverty reduction. Insufficient capacity across infrastructure sectors leads to a widening infrastructure gap, resulting in lower productivity, higher transport and logistics costs, reduced competitiveness, and slower growth.

Acknowledging the importance of infrastructure development in the context of economic growth, the overall strategy of the Government of India (GoI) has been to significantly enhance the role of the private sector in infrastructure development and revolves around (i) revising policies and regulations across sectors for enhancing private sector participation (PSP) in infrastructure development, (ii) strengthening capacity of state governments for promoting public-private partnership (PPP) arrangements for infrastructure development, and (iii) enabling arrangements for bridging the enormous deficit in infrastructure financing especially for long-term funds through all possible sources since available sources of supplemental equity and long-term debt that can match the long gestation and payback periods of most infrastructure projects are very limited.

Since its inception in 2006, India Infrastructure Finance Company Limited (IIFCL) has emerged as a credible entity. The ongoing $500 million (Multitranche Financing Facility: 1st Periodic Financing Request [PFR] for $300 million and 2nd Periodic Financing Request for $200 million) ADB-funded India Infrastructure Project Financing Facility (IIPFF) will be fully disbursed by IIFCL in mid-year 2009. Anticipating further financing needs, a $500 million India Infrastructure Project Financing Facility II (IIPFF II) is in the country operations and business plan of India 2009 pipeline. While the estimated financing need for PPP projects already sanctioned by IIFCL exceeds the proposed loan amount of $500 million, the 1st PFR for IIPFF II is initially for $62.5 million but due to the additional allocation given to India from the OCR Global Economic Crisis Fund, the first PFR has been increased to $212.4 million.

Impact Improved overall availability and reliability of physical infrastructure
Project Outcome
Description of Outcome Increased private sector participation in infrastructure projects, particularly through PPP
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Long-term funding for IIFCL to provide long-term financing to subprojects developed through PPPs

2. Financing of 14 infrastructure subprojects as provided in the FFA

3. Improved institutional capacity of IIFCL in areas of (i) governance framework, including risk management systems; and (ii) implementation of updated ESSF

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location India
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consultants will be recruited in line with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time).
Procurement All procurement to be financed under an ADB loan will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time) and will also comply with the operations manual adopted by the Board of IIFCL on 14 November 2008.
Responsible ADB Officer Cheolsu Kim
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
India Infrastructure Finance Company Limited
Pradeep Kumar
8th Floor, Hindustan Times Building, 18&20, Kasturba Gandhi Marg, New Delhi-110001
Concept Clearance 11 May 2009
Fact Finding 18 May 2009 to 29 May 2009
MRM 13 Jul 2009
Approval 17 Nov 2009
Last Review Mission -
PDS Creation Date 22 Jun 2009
Last PDS Update 23 Jun 2009

MFF Facility Concept 0037-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 700.00 Cumulative Contract Awards
ADB 700.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %
Title Document Type Document Date
Second India Infrastructure Project Financing Facility: Facility Completion Report MFF Facility Completion Report Sep 2014
Second India Infrastructure Project Financing Facility Reports and Recommendations of the President Oct 2009
Second India Infrastructure Project Financing Facility Framework Financing Agreement Oct 2009

Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

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