India: Ocean Sparkle Expansion Project

Nonsovereign (Private) Project | 47941-001

The loan will partially finance the capital expenditure and expansion plans of Ocean Sparkle Limited (OSL), a leading port operations and management services provider in India, currently with an operational fleet of over 104 boats and presence in around 25 major and non-major ports in India with term-based, take-or-pay off-take contracts.

Project Details

  • Project Officer
    Patil, Avesh
    Private Sector Operations Department
    Request for information
  • Country
    India
  • Sector
    • Transport
Project Name Ocean Sparkle Expansion Project
Project Number 47941-001
Borrower/Company Ocean Sparkle Limited
Country India
Location
Type or Modality of Assistance
3174 Loan Ordinary capital resources USD 35.30 million Committed
3174 Loan Ordinary capital resources INR 286.97 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Transport / Water transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Patil, Avesh
Project Sponsor(s) Ocean Sparkle Limited
Description The loan will partially finance the capital expenditure and expansion plans of Ocean Sparkle Limited (OSL), a leading port operations and management services provider in India, currently with an operational fleet of over 104 boats and presence in around 25 major and non-major ports in India with term-based, take-or-pay off-take contracts.
Objectives and Scope The proposed financing, will support the funding of the OSL's capital expenditure (capex) plan for the next two years. The plan envisions acquisition of vessels for deployment around ports in India and other South Asian markets. All vessels are expected to be sourced from the international market. The whole acquisition process will be sequenced to ensure full vessel utilization and is scheduled to be completed within 24 months. These vessels will enhance efficiency of ports where OSL operates through more competitive privately-run harbor towage, mooring and pilotage operations.
Status of Development Objectives The project is meeting the defined Development Objectives.
Status of Operation/Construction The tug-boats and PSVs proposed to be bought using ADB's funding assistance have been procured. As of December 2020, OSL operates and manages a fleet of 120 vessels (all categories). 8 tug boats and 2 dredgers added during FY20 (all vessels have been employed and OSL won few short-term dredging contracts) have now started contributing to the revenues. OSL signed 9 new contracts and renewed 10 existing contracts.
Linkage to Country/Regional Strategy

The proposed financing is consistent with ADB's Strategy 2020 as it (i) promotes export-led growth through infrastructure investment; (ii) enhances connectivity and regional integration; and (iii) promotes private sector participation in the ports sector in Asia. The Country Partnership Strategy (CPS) for India (2013-2017) highlights transport and finance for infrastructure as two of the seven core areas under Infrastructure development that support faster growth in India; the project is also aligned with the CPS priority areas specifically with regards to port development and support for the infrastructure sector through non-sovereign operations.

The project is also aligned with ADB's Sustainable Transport Initiative which acknowledges under the Regional Cooperation and Integration section the importance of addressing trade growth constraints such as indirect costs associated with unreliable transit times, border-crossing delays, handling and storage costs due to poor terminal infrastructure.

Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects OSL has an environmental and social management system (ESMS) as part of their integrated safety and quality management system (IMS). The IMS is based on International Organization for Standardization (ISO) standards 9001:2015, 14001:2015, and 45001:2018. Under normal operations, OSL's activities have negligible environmental adverse impacts. Major environmental risks are associated with occupational health and safety, and potential spills. OSL has procedures for addressing potential risks, that are compliant with the requirements the International Convention for the Prevention of Pollution from Ships (MARPOL) and the International Convention for the Safety of Life at Sea (SOLAS). OSL has set up a training centre to train tug masters and pilots. Staff are also trained in accordance with the IMS procedures.
Involuntary Resettlement OSL's operations are not expected to involve land acquisition nor cause involuntary restrictions on land use. The services provided by OSL to the ports involve provision, operations and maintenance of marine vessels, and are within the boundaries of the port complex. OSL's contracts with the port authorities usually include provision of office space, while the accommodation of the crew is provided on the vessels.
Indigenous Peoples OSL operations are always within the port facilities. Impacts on indigenous peoples are not expected.
Stakeholder Communication, Participation, and Consultation OSL has a stakeholder engagement process with relevant stakeholders. The engagement process ensures identification of the needs of the various stakeholders and better integrates their concerns in OSL operations. OSL's corporate social responsibility initiatives include activities focusing on girl child education, food and nutrition, health care, skills development, and education support to economically backward class, implemented in partnership with Non-Government Organizations.
Timetable for assistance design, processing and implementation
Concept Clearance 27 Jan 2014
Credit Committee Meeting 01 Sep 2014
Approval 24 Oct 2014
PDS Creation Date 08 Mar 2014
Last PDS Update 05 Aug 2021

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

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