India: Ocean Sparkle Expansion Project
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.
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|Project Name||Ocean Sparkle Expansion Project|
|Borrower/Company||Ocean Sparkle Limited
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|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.
|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.
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|
|Ocean Sparkle Expansion Project: Extended Annual Review Report||Extended Annual Review Reports||Aug 2021|
|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.
|Title||Document Type||Document Date|
|Ocean Sparkle Expansion Project: Environment and Social Monitoring Report (April 2020-March 2021)||Environmental and Social Monitoring Reports||Mar 2021|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.