India : Accelerating Infrastructure Investment Facility in India - Tranche 3

Sovereign Project | 47083-004

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 Name
Accelerating Infrastructure Investment Facility in India - Tranche 3
Project Number
47083-004
Country / Economy
  • India
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
  • Technical Assistance
Source of Funding / Amount
Loan 3728-IND: Accelerating Infrastructure Investment Facility in India - Tranche 3
Source Amount
Ordinary capital resources US$ 300.00 million
TA 9622-IND: Expanding Infrastructure Financing Capacity
Source Amount
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 /

Gender
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 $258.94 million to subprojects with total project cost of approximately $1.92 billion. Further, 17 subprojects have been fully cleared for safeguards requirements.

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, 17 PPP subprojects financed under the Facility:(i) 15 subprojects through direct financing.(ii) 2 subprojects through take-out finance

Ongoing. TA consultants are working with IIFCL in preparing the case studies.

Ongoing. Per March 2021 and September 2021 progress report, MIS are adequately integrated.

Ongoing. Per March 2021 and September 2021 progress report, integrated risk management policies, key gaps, deliverables and recommendations was presented and approved by the Board of Directors on 12 November 2020. Credit rating model firm worked with IIFCL to develop and install 3 risk rating models. Once handholding support period ends, inputs will be incorporated in the final risk management analysis.

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.

Contact

Responsible ADB Officer
Param Soothy, Ruben
Responsible ADB Department
Sectors Group
Responsible ADB Division
Finance Sector Office (SG-FIN)
Executing Agencies
India Infrastructure Finance Company Limited

Timetable

Concept Clearance
-
Fact Finding
-
MRM
29 Jun 2018
Approval
23 Oct 2018
Last Review Mission
-
Last PDS Update
20 Dec 2022

Funding

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 - 03 Jul 2023
Financing Plan
  Total (Amount in US$ million)
Project Cost 300.00
ADB 300.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 07 Mar 2024 300.00 0.00 100%
Cumulative Disbursements 07 Mar 2024 300.00 0.00 100%

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 28 Nov 2023 28 Feb 2024
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00
Cumulative Disbursements
Date Amount
07 Mar 2024 492,872.15

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.

Title Document Type Document Date
Accelerating Infrastructure Investment Facility in India - Tranche 3: Audited Project Financial Statements (1 April 2022-3 July 2023) Audited Project Financial Statements Apr 2024
Accelerating Infrastructure Investment Facility in India - Tranche 3: Audited Project Financial Statements (April 2021-March 2022) Audited Project Financial Statements Sep 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Audited Project Financial Statements (April 2020-March 2021) Audited Project Financial Statements Sep 2021
Accelerating Infrastructure Investment Facility in India - Tranche 3: Audited Project Financial Statements (April 2019 - March 2020) Audited Project Financial Statements Dec 2020
Accelerating Infrastructure Investment Facility in India - Tranche 3: Audited Project Financial Statements (16 November 2018 to 31 March 2019) Audited Project Financial Statements Oct 2019
Loan Agreement (Ordinary Operations) for Loan 3728-IND: Accelerating Infrastructure Investment Facility in India - Tranche 3 Loan Agreement (Ordinary Resources) Nov 2018
Guarantee Agreement (Ordinary Operations) for Loan 3728-IND: Accelerating Infrastructure Investment Facility in India - Tranche 3 Guarantee Agreements Nov 2018
Accelerating Infrastructure Investment Facility in India - Tranche 3: Project Administration Manual Project/Program Administration Manual Oct 2018
Expanding Infrastructure Financing Capacity: Technical Assistance Report Technical Assistance Reports Oct 2018
Accelerating Infrastructure Investment Facility in India - Tranche 3: Facility Administration Manual Facility Administration Manual Oct 2018
Accelerating Infrastructure Investment Facility in India - Tranche 3: Periodic Financing Request Report Periodic Financing Request Reports Oct 2018
Accelerating Infrastructure Investment Facility in India - Tranche 3: Tranche-at-a-Glance Report Tranche Reports Oct 2018

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: M/s Shankaranarayana Dobaspat Expressway Pvt. Ltd. Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Jun 2023
Accelerating Infrastructure Investment Facility in India - Tranche 3: Dewas Bypass Tollways Private Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Nov 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Patel Darah Jhalawar Highways Private Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Nov 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Arawali Kante Multi Projects Private Limited Environment and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Nov 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Parshuram Aravali Highway Private Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Nov 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: DBL Mangalwedha Solapur Highway Pvt. Ltd. Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Sep 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: DBL Borgaon Watambare Highways Pvt. Ltd. Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Sep 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Spring ALT Energy Private Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Sep 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Ashoka Ankleshwar Manubar Expressway Private Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Sep 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Shamlaji Expressway Private Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Sep 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Jindal Urban Waste Management (Visakhapatnam) Ltd. Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Aug 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Ashoka Ranastalam Anandapuram Road Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Aug 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Mytrah Vayu (Krishna) Private Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Aug 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Jindal Urban Waste Management (Guntur) Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Aug 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Mytrah Vayu (Pennar) Private Limited Environmental and Social Monitoring Report (January-December 2021) Environmental and Social Monitoring Reports Aug 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Shamlaji Expressway Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Jan 2022
Accelerating Infrastructure Investment Facility in India - Tranche 3: Ashoka Ankleshwar Manubar Expressway Private Limited Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Sep 2021
Accelerating Infrastructure Investment Facility in India - Tranche 3: Ashoka Ranastalam Anandapuram Road Limited Environment and Social Monitoring Report (January- December 2019) Environmental and Social Monitoring Reports Mar 2021
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: 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: 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: 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: 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: 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: 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: 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
International Climate Finance Specialist Individual - Consulting Closed
Credit Risk Management Firm Firm - Consulting Closed
Accelerating Infrastructure Investment Facility in India - Tranche 3 Environmental Safeguard Specialist Individual - Consulting Closed
Accelerating Infrastructure Investment Facility in India - Tranche 3 Social Development Specialist Individual - Consulting Closed
AIIFI T3 TA - Natl Risk Management Specialist Individual - Consulting Closed
Financial Instituion Capacity Development Firm - Consulting Closed
AIIFI T3 TA - Credit Risk Management Firm - Consulting Closed
AIIFI T3 TA - International Risk Management Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.