India Early Warning Update
Asian Development Bank Business Opportunities: Volume No. 3, February 2008
Tuesday, March 11, 2008
This Bulletin is a periodic electronic update from the Bank Information Center (BIC) South Asia office to inform civil society about Asian Development Bank (ADB) projects in India before they are approved by the Board of Directors of the ADB. This Update covers project information, organized by sectors. The information is compiled directly from ADB’s Business Opportunities.
For feedback on the Early Warning Update or to subscribe, please contact:
Bank Information Center, South Asia Office (New Delhi)
Phone: +91-11-2602-0143; Email: southasia@bicusa.org; Web: www.bicusa.org
For more information on specific projects, please contact the following at the ADB:
The Project Officer (contact details listed against each project). When emailing, also copy to: disclosure@adb.org. You may also contact the ADB Public Information and Disclosure Unit (See: http://www.adb.org/Disclosure/contact.asp).
About Business Opportunities (BOp)
Business Opportunities (BOp) identifies potential projects that are under consideration for ADB financing. The BOp listings do not guarantee that financing will be approved for particular projects. However, BOp listings serve as important tools for monitoring and follow up of proposed projects. These, along with your country’s Country Partnership Strategy (CPS), work as early warnings on the projects that your government and the Bank are considering for funding. Advocacy and campaigning experience around the world on Bank projects indicates that the earlier civil society gets involved on proposed projects, the greater the likelihood for impacting them. Proposed projects are listed until the point of ADB Board approval; the remaining are dropped from the list. BOp listings are prepared after CPS approval and during the early phases of Project Preparation. For better understanding of this process, the Bank’s Project Cycle is summarized below.
Project Cycle (ADB website for complete project cycle)
ADB’s Project Cycle
Project Identification/Preparation: ADB often provides grants called project/program preparatory technical assistance (PPTA) to help the government identify and prepare feasible projects. The summary is made available in the form of a project profile or project information document (PID).
During the early stage of the PPTA, an initial poverty and social assessment is conducted to identify people who may be beneficially or adversely affected. A technical assistance report is prepared as a recommendation for ADB to finance a technical assistance project.
If the project requires resettlement of people or might adversely impact the environment, or indigenous peoples, certain safeguard assessments are prepared during this stage. The results of these assessments are to be made available to affected people. For more information on community rights under ADB safeguards and international best practices, see comparative matrices of MDB safeguard policies on BIC's website.
Project Examination: ADB examines project feasibility, first through a fact-finding mission and then through an appraisal mission. The fact-finding mission examines the project's technical, financial, economic, environmental, marketing, and management aspects and potential social impact. Detailed project risks and sensitivity analyses are carried out to assess viability of the proposed project and loan terms are discussed.
Following this, the Appraisal Mission conducts further field study, analyses and consultation, as required. The mission then prepares a loan proposal report and draws up a draft loan agreement for negotiation. After appraisal, the draft loan agreement and draft project proposal is submitted for review. Government is then called for negotiation with ADB. After negotiations with the government, the loan proposal is submitted to Board of Directors for Approval, through its Report and Recommendation of the President (RRP).
After Board approval, the document is sent to the borrowing country's Government for cabinet authorization following which the loan agreement is signed. The loan takes effect once certain conditions are met. The requirements and deadline for loan effectiveness are stipulated in the loan agreement.
ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures as detailed out in the project administration memorandum. Implementation time generally ranges from two to five years but depends on the type and nature of the project. ADB's review missions assess the progress of project implementation by visiting it at least twice a year throughout the implementation period.
If a project has significant environmental or social issues, ADB will often require the borrower to submit regular monitoring reports, in addition to progress reports. Information on the project's implementation progress and status of development objectives and loan covenants is added to the project information document during this implementation phase.
For more information, refer to: Unpacking the ADB: A Guide to Understanding the Asian Development Bank
Commonly Used BOp Acronyms
TA: Technical Assistance
AOTA: Advisory and Operational Technical Assistance Loans
PPTA: Project Preparatory Technical Assistance
RETA: Regional Technical Assistance
EIA: Environmental Impact Assessment
IEE: Initial Environmental Examination
N: New Project
R: Revised (italic text indicates change from previous month)
ADB Environmental Categorization
Category “A” Projects: Projects having severe environmental impacts are categorized as “A”. An EIA is required.
Category “B” Projects: Projects having some adverse environmental impacts are categorized as “B”. An IEE is required in order to determine whether an EIA also needs to be done. If not, then the IEE is the final environment document.
Category “C” Projects: Projects havening no environmental impacts are categorized as “C”. No IEE or EIA is required but environmental considerations are still reviewed.
Category “F1” Projects: Projects involving a financial intermediary or equity investment are classified as “F1”. The financial intermediary will apply an environmental management system if environmental impacts are expected.
Current Business Opportunities for India
Agriculture & Natural Resources /Irrigation & Drainage |
|
Project Name |
(N) MFF - ORISSA Integrated Irrigated Agriculture & Water Management Investment Program (Facility Concept) |
|
Project Type and ID |
LOAN: IND 38411-01 |
|
Executing Agency |
Water Resources Department, Government of Orissa |
|
Loan Amount (US$ million) |
200.00 |
|
Date of First Listing |
31 January 2008 |
|
Objectives and Scope |
Impact: Enhanced rural economic growth and reduced poverty in the selected river basins, and institutionalization of effective mechanisms to put into operation PIM-based agricultural growth.
Outcome: Enhanced productivity and sustainability of irrigated agriculture in the selected existing schemes in the river basins, and improved performance of irrigation services delivery and water resources management.
Outputs: Productive and Sustainable Irrigated Management Systems. - Institutions strengthened and project management systems operational. |
|
Environmental Assessment |
Category B |
|
Project Processing Stage |
Appraisal Completed : 21 December 2007 |
|
Project Officer |
Kenichi Yokoyama (632-6937), Agriculture, Natural Resources and Social Services Div, SARD; kyokoyama@adb.org |
Energy /Energy Sector Development |
|
Project Name |
(N) Developing the Power System Master Plan for Bihar |
|
Project Type and ID |
AOTA: IND 42054-01 |
|
Executing Agency |
Bihar State Electricity Board_(BSEB) |
|
TA Amount (US$ '000) |
600.00 |
|
Date of First Listing |
24 January 2008 |
|
Objectives and Scope |
The Master Plan will tie together generation, transmission and distribution expansion to ensure that all capital investments with confidence that proposed investments are not ad hoc and are instead part of a long term, structured plan. It will also reassure the Bihar Electricity Regulatory Commission that network expansion is economically efficient and will provide a realistic framework for loss reduction.
The outcome of the TA will be a comprehensive Poer System Master Plan that will provide the blueprint for development of the power system in Bihar.
The outputs of the TA will include: (i) detailed long-term (15 year) demand forecast for Bihar at the power substation level, with demand disaggregated between main consumer group; (ii) series of realistic long-term generation capacity expansion scenarios, with consideration given to prospects for in-sate generation development as well as generation sourced from outside of Bihar; (iii) series of least cost transmission expansion plans matched to the generation expansion scenarios developed; (iv) assessment of the quantum and timing of generation and transmission investments for each system development scenario; (v) an estimate of distribution investment costs to meet demand growth; (vi) program of distribution loss reduction initiatives; (vii) a targeted loss reduction program, with an assessment of returns expected from investments in terms of technical and non-technical loss reduction; and (viii) a detailed five-year program of capital works, and preparation of detailed project reports for projects to be covered in the first two years.
|
|
Environmental Assessment |
|
Project Processing Stage |
Fact-Finding Mission Completed : 14 December 2007 |
|
Project Officer |
Neside T. Anvaripour (632-6468); Energy Division, SARD; ntasanvaripour@adb.org |
Energy /Renewable Energy |
|
Project Name |
(R) Energy Smart-Facilitating the Operations of Energy Conservation Fund in Madhya Pradesh |
|
Project Type and ID |
AOTA: IND 41681-01 |
|
Executing Agency |
Government of Madhya Pradesh, Energy Department |
|
TA Amount (US$ '000) |
1,700.00 |
|
Date of First Listing |
7 December 2007 |
|
Objectives and Scope |
This initiative will promote the culture of energy efficiency in Madhya Pradesh and suppliers and consumers of energy will work in tandem to conserve energy. In addition, the ECF of MP will become a role model for other states in India.
The outcome of this exercise will be sustainable ECF which is successfully managed and engaged in disbursement of funds to various consumers on energy conservation projects in a Private Public Partnership model. Subsequently, the interest will be generated in the financial community to lend for EE projects and capacity will be built in commercial banks and financial institutions. This exercise will generate a pool of trained stakeholders responsible to carry forward the EE program in MP.
The TA would help make operation of ECF financially stable in the first 4 years and sustainable thereafter. This initiative will encourage commercial banks and financial institutions in shedding their hesitation for financing energy conservation projects in MP. Through its promotional activities like information dissemination and outreach and spreading awareness amongst the consumers and financiers the TA will produce a model which will facilitate implementation of energy conservation measures and promoting the culture of EE in MP and this model will be replicated in other states of India. |
|
Environmental Assessment |
|
Project Processing Stage |
Fact-Finding Mission Completed : 29 November 2007 |
|
Project Officer |
Neside T. Anvaripour (632-6468); Energy Division, SARD; ntasanvaripour@adb.org |
Energy /Energy Sector Development |
|
Project Name |
(R) Bihar Electricity Regulatory Commission |
|
Project Type and ID |
AOTA: IND 41612-01 |
|
Executing Agency |
Bihar Electricity Regulatory Commission |
|
TA Amount (US$ '000) |
200.00 |
|
Date of First Listing |
7 November 2007 |
|
Objectives and Scope |
The TA will provide support to BERC through training and capacity building (i) to establish norms of operation for the sector companies; (ii) rationalization of electricity tariff and setting up norms for disaggregated tariffs for generation, transmission and retail supply tariffs, (iii) revising the existing grid code; (iv) specify security of supply, metering and energy accounting norms, (vi) review and ratify financing restructuring plan; (vii) set up licensing standards and (viii) other areas will be identified during the fact finding mission. In addition, the TA will set up twinning arrangements with Indian and international regulatory commissions for BERC members to obtain on the job training. |
|
Environmental Assessment |
|
|
Project Processing Stage |
Fact-Finding Mission Completed : 14 December 2007 |
|
Project Officer |
Neside T. Anvaripour (632-6468), Energy Division, SARD; ntasanvaripour@adb.org |
Energy/Energy Sector Development |
|
Project Name |
(N) MFF - Himachal Clean Power Development (Facility Concept) |
|
Project Type and ID |
LOAN: IND 41627-01 |
|
Executing Agency |
Himachal Pradesh Power Corp. Ltd. |
|
Loan Amount (US$ million) |
800.00 |
|
Date of First Listing |
25 January 2008 |
|
Objectives and Scope |
HCEDIP will contribute to economic development in Himachal Pradesh State and thereby in India through expanded power supplies, and will develop clean energy by supporting selected investments in hydropower generation and associated transmission system expansion to facilitate sector sustainability and protect the environment.
HCEIDIP will produce the following outcomes: (i) increased production and use of clean energy in a financially sustainable manner through run-of-the-river hydropower schemes, (ii) improved State finances from sales revenue earned from power exports, (iii) partially offset project operation expenses due to potential revenues derived from CDM Carbon credit sales, and (iv) improved capacity in HPC for better planning, implementation and management of hydropower plants, as well as implementing CDM initiatives and energy efficiency programs.
Four medium to large hydropower projects: Sawra Kuddu - 111 MW; Integrated Kashang - 243 MW; Sanj - 100 MW; and Songtong-Karcham - 402 MW. All are located in the Western Himalayas of Himachal Pradesh
|
|
Environmental Assessment |
To be determined. |
|
Project Processing Stage |
Fact-Finding Mission Completed : 30 November 2007 |
|
Project Officer |
Andrew Jeffries (632-5319), Energy Division, SARD; ajeffries@adb.org |
Transport & Communications/Roads & Highways |
|
Project Name |
(R) Bihar State Highways Project (formerly Bihar State Roads Investment Program) |
|
Project Type and ID |
LOAN: IND 41127-01 |
|
Executing Agency |
Road Construction Department
Chief Engineer/Project Director, Road Construction Department (RCD), Government of Bihar, Vishweshwaraiya Bhavan, Bailey Road, Patna, 800015 Bihar |
|
Loan Amount (US$ million) |
379.90 |
|
Date of First Listing |
31 May 2007 |
|
Objectives and Scope |
The proposed investment program will improve transport efficiency of the state road network, which will contribute to expansion of economic opportunities and poverty reduction. This will be realized by improving the state road network and enhancing State Government of Bihar's (GOB) capacity for road asset development and management. |
|
Environmental Assessment |
Category B |
|
Project Processing Stage |
Fact-Finding Mission Completed : 30 November 2007 |
|
Project Officer |
Hiroaki Yamaguchi (632-6745), Transport and Communications Division, SARD; hyamaguchi@adb.org |
Transport & Communications/Roads & Highways |
|
Project Name |
(R) Jammu and Kashmir State Roads Investment Program |
|
Project Type and ID |
PPTA: IND 40013-01 |
|
Executing Agency |
Economic Reconstruction Agency of Jammu & Kashmir State
Contact: Project Director; Tel. No. : +91 194-2452359; +91 191-2455412 Address : Srinagar: 1st Floor, Cottage Arts Blvd., Srinagar; Jammu: 13 C/C Gandhi Nagar, Jammu |
|
TA Amount (US$ ‘000) |
1,000.00 |
|
Date of First Listing |
31 October 2007 |
|
Objectives and Scope |
The proposed TA will (i) prepare feasibility study reports and preliminary design for 600-800km roads and 0.5-1.0km bridges and (ii) provide sector analysis for identifying areas for sector development, and (iii) provide capacity enhancement to GOJK for GOJK’s preparing/finalizing safeguard documents, and design and bid documents. |
|
Environmental Assessment |
Required |
|
Project Processing Stage |
Approved by the Bank : 17 December 2007 |
|
Project Officer |
Hiroaki Yamaguchi (632-6745); Transport and Communications Division, SARD; hyamaguchi@adb.org |
Multisector |
|
Project Name |
(R) Capacity Development of the National Capital Region Planning Board |
|
Project Type and ID |
AOTA: IND 41598-01 |
|
Executing Agency |
National Capital Region Planning Board
Ministry of Urban Development, Govt of India
Core-IV B, First Floor, India Habitat Centre
Lodhi Road, New Delhi-110003 |
|
TA Amount (US$ ‘000) |
2,000.00 |
|
Date of First Listing |
31 October 2007 |
|
Objectives and Scope |
Impact: Planned urban development of the National Capital Region (NCR) leads to: (i) improvement in the quality of basic urban services in the NCR; (ii) development of counter-magnet towns; reduction in the in-migration into Delhi; and (iii) acceleration of economic growth in the NCR.
The outcome of the TA is to improve business processes and skills at the NCRPB, state-level NCR cells, and other implementing agencies in planning for urban infrastructure and conceiving, designing, developing, appraising, and implementing good quality infrastructure projects for the planned development of the NCR. This would lead to effective and timely scaling up of urban infrastructure to (i) improve the quality of basic urban services in the NCR, (ii) develop counter-magnet towns, (iii) reduce in-migration into Delhi, and (iv) accelerate economic growth in the NCR.
Outputs: 1. Component A: Business Process Reengineering and Skills Development for the NCRPB; 2. Component B: Skills and Process Improvement in Project Preparation; and 3. Component C: Urban and Regional Planning and Other Activities. |
|
Environmental Assessment |
|
|
Project Processing Stage |
Approved by the Bank : 23 January 2008 |
|
Project Officer |
Sekhar Bonu (632-6572); Urban Development Division, SARD; sbonu@adb.org |
The Bank Information Center (BIC) partners with civil society in developing and transition countries to influence the World Bank and other international financial institutions (IFIs) to promote social and economic justice and ecological sustainability. BIC is an independent, non-profit, non-governmental organization that advocates for the protection of rights, participation, transparency, and public accountability in the governance and operations of the World Bank, regional development banks, and IMF. For more information about BIC, see www.bicusa.org.
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