fbpx 47941-001: Ocean Sparkle Expansion Project | Asian Development Bank

India: Ocean Sparkle Expansion Project

Nonsovereign (Private) Project | 47941-001 Status: Approved

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
Gulshan, Karan Raj 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
7422/3174 Loan USD 286.97 million Approved
7422/3174 Loan USD 35.30 million Approved
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 Gulshan, Karan Raj
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.
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 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.

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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.

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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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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