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 Name | Ocean Sparkle Expansion Project | ||||||||
| Project Number | 47941-001 | ||||||||
| Borrower/Company | Ocean Sparkle Limited |
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| Country | India |
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| Location | |||||||||
| Type or Modality of Assistance |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Partnerships Private sector development |
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| Sector / Subsector | Transport / Water transport (non-urban) |
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| Gender Equity and Mainstreaming | No gender elements | ||||||||
| Responsible ADB Department | Private Sector Operations Department | ||||||||
| Responsible ADB Division | Portfolio Management Division, PSOD | ||||||||
| Responsible ADB Officer | Gulshan, Karan Raj | ||||||||
| Project Sponsor(s) | Ocean Sparkle Limited |
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| 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. | ||||||||
| 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 | |
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| Environmental Aspects | The environmental and social management system (ESMS) of OSL includes an integrated safety and quality management system (IMS) based on ISO 9001:2000 and ISO 14001:2004 standards, and OHSAS 18001. Under normal operations, OSL's activities have negligible environmental adverse impacts. Major environmental risks are associated with accidents. Pilots are key to the safe navigation within the pilotage area and a slight mistake could result in grounding of the vessel, oil spillage, and collision, resulting in damage to both life and environment. When the state or port authorities provide pilotage, service standards are expected to be high as selection of pilots is through set procedures and the safety of vessels is of the prime concern. Also OSL is providing high standard pilots. OSL has manuals for communication during the operations and manuals for accidents. OSL has regular staff training program and facility for its operations. |
| 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 the various stakeholders including the port authorities, shipping companies and communities in the vicinity of the ports. 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 support to the local communities. |
| 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 | 13 Nov 2014 |
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.
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| Title | Document Type | Document Date |
|---|---|---|
| Ocean Sparkle Expansion Project: Project Data Sheet (हिन्दी) | Translated PDS | Nov 2014 |
| Ocean Sparkle Expansion Project: Report and Recommendation of the President | Reports and Recommendations of the President | Oct 2014 |
| Ocean Sparkle Expansion Project: Initial Poverty and Social Assessment | Initial Poverty and Social Analysis | Sep 2014 |
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.
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.
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