fbpx 47083-004: Accelerating Infrastructure Investment Facility in India - Tranche 3 | Asian Development Bank

India: Accelerating Infrastructure Investment Facility in India - Tranche 3

Sovereign (Public) Project | 47083-004 Status: Active

The $700Mn multitranche financing facility supports the availability of infrastructure financing and eventually, facilitate private sector investment in infrastructure public private partnerships (PPP).

The facility was designed to have two tranches. ADB approved tranche 1 amounting to $400 million in October 2013 which supported 17 subprojects. Tranche 2 amounting to $300 million was approved in October 2015. However, due to the higher guarantee fee tranche 2 was cancelled in 2016. The government, however, agreed to return the guarantee fee to 0.25% and submitted a periodic financing request letter on 6 September 2018. Because tranche 2 has expired, this tranche is designated as tranche 3. Tranche 3 amounting to $300 million was approved on October 2018 and it is expected to support at least 13 subprojects.

Project Details

Project Officer
Hoshino, Takuya South Asia Department Request for information
Country
  • India
Sector
  • Finance
 
Project Name Accelerating Infrastructure Investment Facility in India - Tranche 3
Project Number 47083-004
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3728-IND: Accelerating Infrastructure Investment Facility in India - Tranche 3
Ordinary capital resources US$ 300.00 million
TA 9622-IND: Expanding Infrastructure Financing Capacity
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
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

The $700Mn multitranche financing facility supports the availability of infrastructure financing and eventually, facilitate private sector investment in infrastructure public private partnerships (PPP).

The facility was designed to have two tranches. ADB approved tranche 1 amounting to $400 million in October 2013 which supported 17 subprojects. Tranche 2 amounting to $300 million was approved in October 2015. However, due to the higher guarantee fee tranche 2 was cancelled in 2016. The government, however, agreed to return the guarantee fee to 0.25% and submitted a periodic financing request letter on 6 September 2018. Because tranche 2 has expired, this tranche is designated as tranche 3. Tranche 3 amounting to $300 million was approved on October 2018 and it is expected to support at least 13 subprojects.

Project Rationale and Linkage to Country/Regional Strategy The facility supports the Government of India in promoting infrastructure growth through increased private sector investment in PPPs. When the facility was approved in 2013, India aimed to mobilize about $500 billion in private funding to meet its $1 trillion infrastructure financing requirements under its Twelfth Five Year Plan, 2012-2017. Mobilizing infrastructure financing remains a priority under the (i) Three-Year Action Agenda, 2017-2018 to 2019-2020 and (ii) Economic Survey, 2017-2018 which estimates an infrastructure investment gap of $526 billion through 2040. The facility is an integral part of the Asian Development Bank strategy for infrastructure finance in India and complements parallel initiatives in PPPs and capital markets, all of which contribute to creating an enabling environment for long-term financing for infrastructure development.
Impact Investments in infrastructure increased.
Project Outcome
Description of Outcome Private sector investment in infrastructure PPPs facilitated.
Progress Toward Outcome IIFCL has provided financial assistance of $196.8 million to subprojects with total project cost of approximately $1,256 million.
Implementation Progress
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)

Under Tranche 3, 15 PPP subprojects financed under the Facility:

(i) 13 subprojects through direct financing and

(ii) 2 subprojects through take-out finance.

Risk management recommendations will be presented to the Board. TA consultants are working with IIFCL to develop credit risk rating models.

TA consultants are developing safeguards training materials.

Geographical Location Nation-wide
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects All subprojects that are category B or C will be allowed.
Involuntary Resettlement All subprojects that are category B or C will be allowed.
Indigenous Peoples All subprojects that are category B or C will be allowed.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

ADB recruited

(i) national risk management specialist tasked to evaluate risk management framework, develop multiyear financial projections and coordinate with the credit risk management firm and IIFCL.

(ii) national environmental safeguard specialist and national social development specialist to improve safeguard capacity of IIFCL's safeguard project unit.

(iii) national credit risk management firm tasked to design and develop risk rating models for road, power and generic infrastructure projects.

All consultants under the technical assistance will be recruited according to ADBs Guidelines on the Use of Consultants (2013, as amended from time to time).

Procurement Not applicable.
Responsible ADB Officer Hoshino, Takuya
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
India Infrastructure Finance Company Limited
5th Floor, Block Number 2, Plate A & B,
NBCC Tower, East Kidwai Nagar,
New Delhi, India 110023
Timetable
Concept Clearance -
Fact Finding -
MRM 29 Jun 2018
Approval 23 Oct 2018
Last Review Mission -
Last PDS Update 10 Dec 2020

Loan 3728-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Oct 2018 16 Nov 2018 19 Dec 2018 26 Sep 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 300.00 Cumulative Contract Awards
ADB 300.00 23 Oct 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 23 Oct 2018 197.10 0.00 66%

TA 9622-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Oct 2018 29 Nov 2018 29 Nov 2018 31 Dec 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 23 Oct 2018 152,563.76

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 Access to Information Policy (AIP) 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.

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.

Title Document Type Document Date
Accelerating Infrastructure Investment Facility in India - Tranche 3: DBL Mangalwedha Solapur Highways Private Ltd. Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Nov 2020
Accelerating Infrastructure Investment Facility in India - Tranche 3: DBL Borgaon Watambare Highways Private Ltd. Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Nov 2020
Accelerating Infrastructure Investment Facility in India - Tranche 3: Parsuram Arawali Highways Private Ltd. Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Nov 2020
Accelerating Infrastructure Investment Facility in India - Tranche 3: Jindal Urban Waste Management (Visakhapatnam) Ltd Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Jul 2020
Accelerating Infrastructure Investment Facility in India - Tranche 3: Sprng ALT Energy Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Apr 2020
Accelerating Infrastructure Investment Facility in India - Tranche 3: Dewas Bypass Tollway Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: DBL Mahagaon-Yavatmal Highways Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: Patel Darah Jhalawar Highway Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: Ashoka Ranastalam Anandapuram Road Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: MEP Sanjose Arawali Kante Road Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: MEP Sanjose Kante Waked Road Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: Freedom Point Expressways Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: Mytrah Vayu (Pennar) Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: Mytrah Vayu (Krishna) Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Dec 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3: Jindal Urban Waste Management (Guntur) Ltd Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Oct 2019

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Tenders

Tender Title Type Status Posting Date Deadline
Credit Risk Management Firm Firm - Consulting Closed 11 Dec 2019 08 Jan 2020
Accelerating Infrastructure Investment Facility in India - Tranche 3 Environmental Safeguard Specialist Individual - Consulting Closed 22 Jun 2019 28 Jun 2019
Accelerating Infrastructure Investment Facility in India - Tranche 3 Social Development Specialist Individual - Consulting Closed 18 Jun 2019 26 Jun 2019
AIIFI T3 TA - Natl Risk Management Specialist Individual - Consulting Closed 21 Nov 2018 30 Nov 2018
Financial Instituion Capacity Development Firm - Consulting Closed 12 Sep 2018 18 Sep 2018
AIIFI T3 TA - Credit Risk Management Firm - Consulting Closed 12 Sep 2018 18 Sep 2018
AIIFI T3 TA - International Risk Management Specialist Individual - Consulting Closed 07 Aug 2018 05 Sep 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.