The Asian Development Bank is working with India to increase the funding available for infrastructure projects. The program is helping the government make public-private partnerships to build infrastructure more attractive to private companies that might want to invest.
|Project Name||Accelerating Infrastructure Investment Facility in India - Tranche 2|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Knowledge solutions
Private sector development
|Sector / Subsector||
Finance / Infrastructure finance and investment funds
|Gender Equity and Mainstreaming||No gender elements|
|Description||This periodic financing request is the final tranche under the Accelerating Infrastructure Investment Facility in India (AIIFI). It includes a pilot project that extends lending in local currency using offshore rupee-linked bonds. As such, it will effectively source foreign investments to fund India's infrastructure development without incurring foreign exchange risk.|
|Project Rationale and Linkage to Country/Regional Strategy||Accelerating Infrastructure Investment Facility in India (AIIFI) is a $700-million facility to the IIFCL to accelerate infrastructure growth through increased private sector investment. AIIFI is an integral part of ADB's strategy for infrastructure finance and compliments parallel initiatives in public-private partnerships (PPPs) and capital markets, all of which contribute to creating an enabling environment for long-term financing for infrastructure.|
|Impact||Investments in infrastructure increased (Twelfth Five-Year Plan, 2012- 2017)|
|Description of Outcome||Private sector investments in infrastructure PPPs facilitated.|
|Progress Toward Outcome|
|Description of Project Outputs||
Availability of long-term finance for PPP subprojects enhanced
Operational capacity of IIFCL improved
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
In accordance with ADB's Procurement Guidelines (2015, as amended from time to time) as applicable to financial intermediaries, all procurement to be financed under the loan will be carried with established private sector or commercial practices, which are acceptable to ADB. For procurement of goods and services to be financed by subloans from the ADB loan, IIFCL will ensure that the price paid is reasonable and that account is taken of factors such as time of delivery, efficiency, and reliability. For build-operate-transfer projects and their variants, if the subproject sponsor or engineering procurement and construction contractor is selected through competitive bidding among international entities in accordance with procedures acceptable to ADB, such engineering procurement and construction contractor may apply its own procedures for procurement provided that such procurement is for goods, services, and works supplied from or produced in ADB member countries. All subprojects will procure goods and works from member countries of ADB in an amount at least equal to the size of the subproject's subloan. For subprojects financed under IIFCL's takeout financing scheme, each subproject must certify that goods and works of an amount at least equivalent to the subloan were procured from member countries of ADB.
Retroactive Financing. In accordance with ADB's guidelines, retroactive financing up to 20% of the proceeds of the second tranche will be permissible for eligible expenditures incurred not earlier than 12 months prior to loan signing. In all cases of retroactive financing, the subborrower will carry out and operate the subproject in accordance with sound administrative, financial, economic, engineering, environmental and social safeguards, and business practices, including maintenance of adequate accounts and records.
Free Limit. ADB will, subject to its policies and procedures, extend a free limit for IIFCL of up to $30 million for qualified greenfield and take-out financing subprojects.
Eligibility Criteria for Subproject. Subprojects will be selected under eligibility and selection criteria as set out in SIFTI or the Takeout Finance Scheme, as applicable, and in accordance with subproject and subborrower selection criteria and approval process as indicated in the Loan Agreement.
The SIFTI provides definitions, eligibility criteria, appraisal, monitoring, and lending terms to subprojects. Thus, the eligibility requirements for subproject and subborrower selection criteria of AIIFI will adhere to SIFTI which includes, inter alia, appraisal of the subproject by the designated specialized appraisal agency for technical, economic, and commercial viability and review and acceptance of the results of the appraisal. In addition, subprojects will be required to meet the ADB requirements as well as to follow the subproject approval procedures, details of which are stipulated in the Loan Agreement and FFA, and will include safeguard and procurement compliance requirements.
|Responsible ADB Officer||Romero-Torres, Jennifer|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SARD|
India Infrastructure Finance Company Limited
10th Floor, Jeewan Prakash Building
25 Kasturba Gandhi Marg
New Delhi, India 110001
|MRM||28 Jul 2015|
|Approval||30 Oct 2015|
|Last Review Mission||-|
|Last PDS Update||02 Sep 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|30 Oct 2015||-||-||31 Mar 2019||-||24 Nov 2016|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||300.00||Cumulative Contract Awards|
|ADB||300.00||30 Oct 2015||0.00||0.00||0%|
|Cofinancing||0.00||30 Oct 2015||0.00||0.00||0%|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Accelerating Infrastructure Investment Facility in India - Tranche 2: Periodic Financing Request Report||Periodic Financing Request Reports||Oct 2015|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
No tenders for this project were found.
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None currently available.