India Early Warning Update
Asian Development Bank Business Opportunities: Volume No. 6, May 2008
Monday, June 30, 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
Phone: +1-202-737 7752; 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 |
Capacity Building in Himachal Power Sector Agencies |
|
Project Type and ID |
AOTA: (N) IND 41611-01 |
|
Executing Agency |
Himachal Pradesh State Electricity BoardHimachal Pradesh Electricity Regulatory CommissionHimachal Pradesh Power Corp. Ltd. |
|
Loan Amount (US$ million) |
900.00 |
|
Date of First Listing |
23 May 2008 |
|
Objectives and Scope |
Component 1: The outcome will be a comprehensive Power System Master Plan that will provide the blueprint for development of the power system in HP. The Master Plan will tie together generation, transmission and distribution expansion to ensure with confidence that all proposed capital investments are not ad hoc and are instead part of a long term, structured plan. It will also ensure that network expansion is economically efficient and will provide a realistic framework for loss reduction. Component 2: The outcome will be specifications for a Regulatory Management Information System (RMIS) and reporting framework for the power sector entities. Using these specifications, HPERC will acquire a RMIS by using its own resources. Assessing information requirement of HPERC and reporting necessities of the power sector entities will facilitate purchasing or developing the correct RMIS and ultimately facilitate implementation of the multiyear tariff structure. RMIS will also support review of performance standards in the multiyear tariff framework. Developing a methodology to compute the cost of supply at various voltage levels will support (i) rationalization of tariff accross different voltage levels; (ii) rationalization of cross subsidies; and (iii) support determination of open access surcharges. Component 3: Capacity developed in preparation of periodic financing requests for further tranches of MFF. (i) Specification for a RMIS; (ii) Reporting framework for the power sector entities; and (iii) cost of supply framework and model.
Component 1 (i) a detailed long-term (10 year) demand forecast for HP at the power substation level, with demand disaggregated between main consumer group; (ii) a series of realistic long-term generation capacity expansion scenarios, with consideration given to prospects for in-state generation development as well as generation sourced from outside of HP; (iii) a series of least cost transmission expansion plans, matched to the generation expansion scenarios developed; (iv) an 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) cost and benefit analysis for with and without clean development mechanism option; (vii) identification of risk factors and a risk management plan for the power system of HP; (viii) institutional reform recommendations for HPSEB to develop capacity to implement and revise as necessary the Master Plan; (ix) a power system analysis software program and equipment (computers); and (x) a detailed five-year program of capital works, and preparation of detailed project reports (DPRs) for projects to be covered in the first two years. Component 2 (i) specification for a RMIS; (ii) reporting framework for the power sector entities; and (iii) cost of supply framework and model. Component 3 Periodic financing requests for further tranches of MFF.
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 : 04 April 2008 |
|
Project Officer |
Neside T. Anvaripour (632-6468), Energy Division, SARD; ntasanvaripour@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 |
Energy/Energy Sector Development |
|
Project Name |
Preparing the Energy Efficiency Enhancement Project in the Assam Power Sector |
|
Project Type and ID |
PPTA: IND 41614-01 |
|
Executing Agency |
Assam State Electricity Board |
|
Loan Amount (US$ million) |
1,000.00 |
|
Date of First Listing |
11 April 2008 |
|
Objectives and Scope |
To promote energy efficiency and expand physical transmission and distribution capacity through institutional capacity building.
(i) Strengthened institutions of Assam Electricity Board (ASEB) agencies to develop the transmission and distribution sector plan and relevant projects, (ii) carried out studies on application of Clean Development Mechanism (CDM) for the Assam Power and further private sector participation in the Assam Power Sector.
The Major outputs by 2009 of the proposed TA includes (i) improved technical, managerial, and financial capabilities for ASEB to conduct social, environmental, economics, technical, and financial analysis for future projects some of which may be financed by ADB; (ii) assistance to ASEB on handling infrastructure projects, (iii) the power sector and issues oriented studies including application of CDM technology for transmission and distribution development.
About 12.0 person-months of international consulting services and 40.0 person-months of national consulting services will be required. ADB will recruit the consultants in accordance with its Guidelines on the Use of Consultants (2007, as amended from time to time). The consulting firm will be selected according to quality-and cost-based selection procedures.
|
|
Environmental Assessment |
To be determined. |
|
Project Processing Stage |
Fact-Finding Mission Completed : 24 April 2008 |
|
Project Officer |
Naoki Sakai (632-4461), Energy Division, SARD; nsakai@adb.org |
Finance |
|
Project Name |
Assam Governance and Public Resource Management Program |
|
Project Type and ID |
AOTA: (N) IND 36308-04 |
|
Executing Agency |
Finance Department Government of Assam |
|
TA Amount (US$ ‘000) |
600 |
|
Date of First Listing |
19 March 2008 |
|
Objectives and Scope |
To support the key institutions responsible for reform programs across various activities in order to improve fiscal management performance.
Support will be provided to implementing agencies to enable them to attain the policy reforms and actions that are specified in the policy matrix.
|
|
Environmental Assessment |
|
|
Project Processing Stage |
Fact Finding Mission completed: 21 February 2008 |
|
Project Officer |
Kyung-Nam Shin (632-6543) kshin@adb.org
Governance, Finance, and Trade Division, SARD |
Law, Economic Management and Public Policy |
|
Project Name |
Assam Governance and Public Resource Management (Subprogram 2) |
|
Project Type and ID |
LOAN: (N) IND 36308-02 |
|
Executing Agency |
Finance Department Government of Assam |
|
TA Amount (US$ Mil) |
100 |
|
Date of First Listing |
19 March 2008 |
|
Objectives and Scope |
The key end-of-program outcomes will include (i) increased tax buoyancy as a result of efficient revenue administration; (ii) expenditures prioritized to allow greater allocation for investments in, and maintenance of, assets; (iii) savings in debt servicing costs as a result of strengthened debt management capacities and consolidated policy procedures; and (iv) better mitigation of fiscal risk originating from selected loss-generating PSEs and further steps towards financial closure and initiation of legal closure process for PSEs notified for closure by getting the statutory audits completed and initating liquidation of assets. These outcomes will be reflected in, and monitored through: (i) continued adherence to deficit targets prescribed in the FRBM Act beyond 2008-2009, and possibly a surplus on the revenue account; (ii) progressively improving own revenue to GSDP ratio; (iii) progressively increasing investments in assets as a percentage of GSDP; (iv) stable debt servicing cost to GSDP ratio; and (v) progressive reduction in budgetary support for PSEs and reduced contingent liabilities on account of guarantees issued by GOA for borrowings by the PSEs. |
|
Environmental Assessment |
C |
|
Project Processing Stage |
Fact- Finding Mission Completed: 21 February 2008 |
|
Project Officer |
Kyung-Nam Shin (632-6543) kshin@adb.org
Governance, Finance, and Trade Division, SARD |
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 |
Water Supply, Sanitation, and Waste Management |
|
Project Name |
Preparing Bihar Urban Development Project (formerly Bihar Urban Infrastructure Dev Sector Prog) |
|
Project Type and ID |
PPTA: (N) IND 41603-01 |
|
Executing Agency |
Urban Development Department (UDD) of Government of Bihar (GoB)
|
|
Loan Amount (US$ million) |
1,000.00 |
|
Date of First Listing |
16 May 2008 |
|
Objectives and Scope |
The proposed PPTA is intended to assist the GoB in achieving its targets of improved living conditions and urban environment in the selected city corporations in the state of Bihar, with improved access by the residents in the city corporations to the sustainable urban services maintained at an appropriate level of cost recovery. The desired outcome is the successful creation of a feasible investment project for the urban sector in the State by way of ADB loan financing and shortened preparatory time for project implementation. |
|
Environmental Assessment |
To be determined |
|
Project Processing Stage |
Fact-Finding Mission Completed : 24 March 2008 |
|
Project Officer |
Gyongshim An (632-6133), Urban Development Division, SARD; gyongshimani@adb.org |
Multisector |
|
Project Name |
Preparing the National Capital Region Planning Board (NCRPB) |
|
Project Type and ID |
PPTA: IND 41598-02 |
|
Executing Agency |
National Capital Region Planning Board (Ministry of Urban Development,Govt of India)Ministry of Urban Development, Govt of India
Core-IV B, First Floor, India Habitat Centre
Lodhi Road, New Delhi-110003 |
|
TA Amount (US$ ‘000) |
700.00 |
|
Date of First Listing |
14 April 2008 |
|
Objectives and Scope |
The impact of ensuing loan is to improve the quality of life of people living in the National Capital Region (NCR) and ensure high economic growth rate in NCR.
The main outcome of the technical assistance (TA) is to design a project that identifies effective financing support to NCRPB as well as a TA loan to NCRPB and implementing agencies to ensure effective use of the funds.
The project outputs will be delivered through inception report, situation analysis report, draft final report and final report. The outputs under institutional assessment and investment needs assessments are as follows: A. Institutional Assessment: (i) Assessment of NCRPB's financial management, credit and risk management, project appraisal, loan management, information systems; (ii) Assessment of capacities of the implementing agencies; (iii) Assessment of the safeguard procedures; (iv) Assessment of public consultation process; (v) Baseline survey reports; (vi) Assessment of ability to attract private capital and co-financing and structure public-partnership deals; (vii) Preparation of environmental management system and safeguard frameworks; and (viii) Technical assistance recommendations to enhance institutional capacities. B. Investment Needs Assessment: (i) Assess the sector road map as laid out in the Regional Plan; (ii) Assess the investment plans of NCRPB; (iii) Prioritize the investment needs; (iv) Investment recommendations based on comprehensive assessment of institutional capacities and sector road map; and (v) Project preparedness of the implementing agencies. |
|
Environmental Assessment |
To Be Determined |
|
Project Processing Stage |
Fact Finding Mission Completed : 28 February 2008 |
|
Project Officer |
Sekhar Bonu (632-6572); Urban Development Division, SARD; sbonu@adb.org |
Multisector |
|
Project Name |
Knowledge Management for Enhanced Operational Effectiveness in India |
|
Project Type and ID |
AOTA: (N) IND 41282-01 |
|
Executing Agency |
India Resident MissionDepartment of Economic Affairs |
|
TA Amount (US$ ‘000) |
1,000.00 |
|
Date of First Listing |
19 May 2008 |
|
Objectives and Scope |
Impact: (i) Enhanced operational effectiveness for inclusive growth through knowledge management; (ii) Capacity development; and (iii) Direct poverty and social development interventions for inclusive growth. |
|
Environmental Assessment |
To Be Determined |
|
Project Processing Stage |
Fact Finding Mission Completed : 24 April 2008 |
|
Project Officer |
Pratima Dayal (632-5514); India Resident Mission; pdayal@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.