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India: Smart Cities Infrastructure Investment Program (Facility Concept)

Sovereign (Public) Project | 50310-001 Status: Dropped / Terminated

The proposed multitranche financing facility (MFF) namely _Infrastructure Investment Facility for Smart Cities in India_ (the facility) involves sovereign loans of $500 million in local currency through India Infrastructure Financing Company (IIFCL), a financial intermediary, to support implementation of the Smart Cities Mission across Indian States. The objective of this facility is to enhance access to finance smart urban infrastructure while leveraging commercial capital for sustainable urban infrastructure improvement. The proposed facility will be supported by a sub-project under cluster technical assistance (C-TA) 0019-IND: Strengthening Climate Change Resilience in Urban India. The C-TA is financed on a grant basis by the Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility.

Project Details

Project Officer
Joshi, Sanjay Divakar South Asia Department Request for information
Country
  • India
Sector
  • Water and other urban infrastructure and services
 
Project Name Smart Cities Infrastructure Investment Program (Facility Concept)
Project Number 50310-001
Country India
Project Status Dropped / Terminated
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept: Smart Cities Infrastructure Investment Program (Facility Concept)
Ordinary capital resources US$ 500.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Water and other urban infrastructure and services

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed multitranche financing facility (MFF) namely _Infrastructure Investment Facility for Smart Cities in India_ (the facility) involves sovereign loans of $500 million in local currency through India Infrastructure Financing Company (IIFCL), a financial intermediary, to support implementation of the Smart Cities Mission across Indian States. The objective of this facility is to enhance access to finance smart urban infrastructure while leveraging commercial capital for sustainable urban infrastructure improvement. The proposed facility will be supported by a sub-project under cluster technical assistance (C-TA) 0019-IND: Strengthening Climate Change Resilience in Urban India. The C-TA is financed on a grant basis by the Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility.
Project Rationale and Linkage to Country/Regional Strategy

Many cities in India lack (i) resources to undertake adequate infrastructure investment financing and structuring, and prepare bankable projects; and (ii) institutional capacity to effectively manage the programming and prioritization of these strategic investments. Therefore there is a gap between cities' strategic development plans that typically present a wish-list of projects, and the requirements of financiers for well-formulated infrastructure projects. Many urban local bodies also lack the necessary funding to deliver critical infrastructure to make them competitive.

Integrated and effective urban development is needed to provide sustainable and affordable basic services. There is an enormous potential to scale up good practices in urban planning and infrastructure development, improve behaviors in hygiene and sanitation, and strengthen institutions to improve living standards for all urban residents. This requires comprehensive development of physical, institutional, social and economic infrastructure, which is important in improving the quality of life and attracting people and investments to the cities, setting in motion a virtuous cycle of growth and development. The Government of India's (GOI's) national flagship program of Smart Cities Mission is a step in this direction. In the approach to the Smart Cities Mission, the objective is to promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of smart solutions.

The Government of India will support about 100 smart cities over five years, which will act as light-house for other aspiring cities. The implementation of the Smart Cities Mission at the city level will be done by a special purpose vehicle (SPV) created for each smart city. The SPV will plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the Smart City development projects. The States / Urban Local Bodies (ULBs) shall ensure that, (a) a dedicated and substantial revenue stream is made available to the SPV so as to make it self-sustainable and could evolve its own credit worthiness for raising additional resources from the market and (b) Government contribution for Smart City is used only to create infrastructure that has public benefit outcomes.

Impact Quality of life of the smart cities' citizens improved
Project Outcome
Description of Outcome Investments in smart cities scaled up
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Financing in smart cities catalyzed

Institutional and management capacity of IIFCL, IPL and ULBs improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Joshi, Sanjay Divakar
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
India Infrastructure Finance Company Limited
5th Floor, Block Number 2, Plate A & B,
NBCC Tower, East Kidwai Nagar,
New Delhi, India 110023
Timetable
Concept Clearance 16 Jan 2019
Fact Finding 05 Jun 2019 to 05 Jun 2019
MRM 14 Aug 2019
Approval -
Last Review Mission -
Last PDS Update 27 Mar 2018

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