India: National Capital Region Urban Infrastructure Financing Facility
In 2010, the Asian Development Bank (ADB) approved the National Capital Region Urban Infrastructure Financing Facility (facility) to assist the National Capital Region Planning Board to implement its Regional Plan 2021. The facility was to be supported by a multitranche financing facility (MFF) of up to $150 million, consisting of two or more tranches. The rationale of the facility was to address constraints to urban infrastructure development in the National Capital Region and counter magnet areas that were due to domestic debt market limitations and weak capacity in urban infrastructure project development and execution. Under the MFF, a range of subprojects were to be submitted as part of the periodic financing request, including those that can be substituted for subprojects that are noncompliant with ADB requirements. At closing, only one tranche (project 1) amounting to $78 million was extended under the MFF. Project 2 did not materialize because of the delays made by the sub-borrowers of National Capital Region Planning Board in deciding remedial actions to address resettlement issues under project 1.
This report validates the completion report of the facility. IED overall assessment: Less than successful.