India : Accelerating Infrastructure Investment Facility in India - Tranche 3
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
Param Soothy, Ruben
South Asia Department
Request for information -
Country/Economy
India -
Sector
- Finance
| Project Name | Accelerating Infrastructure Investment Facility in India - Tranche 3 | ||||||||
| Project Number | 47083-004 | ||||||||
| Country / Economy | India |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Knowledge solutions Private sector development |
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| Sector / Subsector | Finance / Infrastructure finance and investment funds |
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| 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. |
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| 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. |
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| 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. |
| Responsible ADB Officer | Param Soothy, Ruben |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, SARD |
| 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 |
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 | 18 May 2023 | 277.58 | 0.00 | 93% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 May 2023 | 277.58 | 0.00 | 93% |
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 | 30 Jun 2023 | - |
| 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 | 18 May 2023 | 418,747.20 |
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.
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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.
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 | ||
| Financial Instituion Capacity Development | Firm - Consulting | Closed | ||
| Credit Risk Management Firm | Firm - Consulting | Closed | ||
| AIIFI T3 TA - Natl Risk Management Specialist | Individual - Consulting | Closed | ||
| AIIFI T3 TA - International Risk Management Specialist | Individual - Consulting | Closed | ||
| AIIFI T3 TA - Credit Risk Management | Firm - Consulting | Closed | ||
| Accelerating Infrastructure Investment Facility in India - Tranche 3 Social Development Specialist | Individual - Consulting | Closed | ||
| Accelerating Infrastructure Investment Facility in India - Tranche 3 Environmental Safeguard Specialist | Individual - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.