40517-013: Public-Private Infrastructure Development Facility
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Completion Report Project Numbers: 40517-013 and 40517-042 Loan Numbers: 2453 and 2454 Grant Numbers: 0253 and 0254 TA Number: 7143 September 2018 Bangladesh: Public–Private Infrastructure Development Facility This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011. CURRENCY EQUIVALENTS Currency Unit – taka (Tk) At Appraisal At Project Completion 24 June 2008 31 December 2014 Tk1.00 = $0.01459 $0.01283 $1.00 = Tk68.5200 Tk77.9200 ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund DMF – design and monitoring framework ESSF – environmental and social safeguards framework FAPAD – Foreign Aided Project Audit Directorate IDB – Islamic Development Bank IDCOL – Infrastructure Development Company Limited JICA – Japan International Cooperation Agency LIBOR – London interbank offered rate MW – megawatt OCR – ordinary capital resources PPIDF Public–Private Infrastructure Development Facility PPP – Public–private partnership RRP – report and recommendation of the President SDR – special drawing rights SHS – solar home systems TA – technical assistance NOTES (i) The fiscal year (FY) of the Government of Bangladesh ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 30 June 2018. (ii) In this report, "$" refers to United States dollars. Vice-President Wencai Zhang, Operations 1 Director General Hun Kim, South Asia Department (SARD) Director Manmohan Parkash, Bangladesh Resident Mission, SARD Team leader Bidyut Kumar Saha, Senior Project Officer, SARD Team members Kamrun Nahar Chowdhury, Operations Assistant, SARD M.M. Zimran Khan, Associate Project Analyst, SARD Md. Golam Mortaza, Economist, SARD 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. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. PROJECT DESIGN 1 A. History 1 B. Scope of Operations 2 C. Relationship with ADB and Other Lenders 2 D. Project Design and Formulation 3 E. Technical Assistance 4 III. PROJECT IMPLEMENTATION 4 A. Lending Policies 4 B. Characteristics of Subloans 5 C. Implementation and Internal Operations of Subprojects 5 D. Organization and Operations of Infrastructure Development Company Limited 7 E. Portfolio of Infrastructure Development Company Limited 8 F. Financial Statements and Ratios 8 G. Covenants 9 IV. SUBLOAN IMPLEMENTATION 9 A. Loan Appraisal 9 B. Implementation 10 V. EVALUATION OF PROJECT PERFORMANCE 11 A. Relevance 11 B. Effectiveness 11 C. Efficiency 12 D. Sustainability 12 E. Development Impact 13 F. Performance of Infrastructure Development Company Limited 13 G. Performance of the Asian Development Bank 13 H. Overall Assessment 14 VI. ISSUES, LESSONS, AND RECOMMENDATIONS 14 A. Issues and Lessons 14 B. Recommendations 15 APPENDIXES 1. Design and Monitoring Framework 16 2. Solar Home System Program 20 3. Relationship with the Asian Development Bank and Other Lenders 23 4. Financing Plan 24 5. Technical Assistance Completion Report 25 6. Characteristics of Subloans 28 7. List of Subprojects 29 8. Safeguard and Procurement Compliance 31 9. Organization: Infrastructure Development Company Limited 34 10. Loan Portfolio of Infrastructure Development Company Limited 37 11. Portfolio Quality of Infrastructure Development Company Limited 38 12. Financial Performance of Infrastructure Development Company Limited 39 13. Status of Compliance with Loan and Grant Covenants 43 14. Outstanding Observations of Foreign Aided Project Audit Directorate 58 15. Economic Evaluation 60 16. Financial Evaluation 64 17. Calculation of Carbon-Di-Oxide Emission for Solar Home System 67 BASIC DATA LOANS 2453-BAN(SF), L2454-BAN A. Loan Identification 1. Country Bangladesh 2. Loan number and financing source 2453-BAN(SF), 2454-BAN (OCR) 3. Loan title Public–Private Infrastructure Development Facility 4. Borrower People’s Republic of Bangladesh 5. Name of financial intermediary Infrastructure Development Company Limited (IDCOL) 6. Amount of loans L2453-BAN (SF) SDR52,870,000 L2454-BAN (OCR) $82 million 7. Project completion report number PCR:BAN 1725 B. Loan Data 1. Appraisal – Date started 18 June 2008 – Date completed 24 June 2008 2. Loan negotiations – Date started 3 September 2008 – Date completed 4 September 2008 3. Date of Board approval L2453 2 October 2008 L2454 2 October 2008 4. Date of loan agreement L2453 21 October 2008 L2454 21 October 2008 5. Date of loan effectiveness L2453 – In loan agreement 3 February 2009 – Actual 24 February 2009 – Number of extensions 1 L2454 – In loan agreement 19 January 2009 – Actual 24 February 2009 – Number of extensions 2 6. Terminal date for commitments Not applicable – In loan agreement – Actual – Number of extensions 7. Loan closing date L2453 – In loan agreement 31 December 2013 – Actual 31 December 2013 – Number of extensions 1 ii L2454 – In loan agreement 31 December 2013 – Actual 31 March 2015 – Number of extensions 2 8. Financial closing date L2453 – Actual 21 July 2014 L2454 – Actual 22 January 2018 9. Terms to the borrower L2453 – Interest rate 1% per annum during grace period and 1.5% per annum thereafter – Maturity (number of years) 32 – Grace period (number of years) 8 – Free limit None – Repayment terms Payable semiannually on 1 April and 1 October in each year in accordance with Schedule 1 of the Loan Agreement. L2454 – Interest rate Sum of LIBOR and 0.60% – Maturity (number of years) 25 – Grace period (number of years) 5 – Free limit None – Repayment terms Payable semiannually on 1 April and 1 October in each year in accordance with Schedule 1 of the Loan Agreement. 10. Terms of relending (if any) L2453 Component B: Bangladesh Bank Rate. Component C: 3% per annum or such higher rate to ensure that the implementing agency’s lending spread to participating organizations shall not at any time be more than 300 basis points. Component A: LIBOR plus 100 basis L2454 points. 11. Interest rate for subloans – Original Market-based – Revised – 12. Disbursements a. Dates a1. L2453 Initial Disbursement Final Disbursement Time Interval 30 March 2009 19 December 2012 44.6 months Effective Date Actual Closing Date Time Interval 24 February 2009 December 2013 58.22 months iii a2. L2454 Initial Disbursement Final Disbursement Time Interval 30 March 2009 19 December 2012 44.6 months Effective Date Actual Closing Date Time Interval 24 February 2009 December 2013 58.22 months b. Amount (million) b1. L2453: (SDR52 million) Increased Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implementation Allocation Disbursed Balancea Subloan (1) (2) (3) (4=1+2-3) (5) (6 = 4 – 5) Banglalion 2.38 0 0 2.38 2.38 0 Fiber@Home 0.92 0 0 0.92 0.92 0 Various partnersc 49.55 0 0 49.55 49.55 0 Total (SDR equivalent) 52.85 0 0 52.85 52.85 0 Total ($ equivalent) 83.00a 0 0 81.64 81.64b 0 Total (Tk equivalent) 6,078.69 0 0 6,078.69 6,078.69 0 SDR = special drawing right Note: There is an undisbursed amount of SDR23.05 for Loan 2453 as per partial cancellation on 21 July 2014. a United States dollar equivalent as per the report and recommendation of the President. b United States dollar equivalent as of the date of closing of the loan account. c Under the Public–Private Infrastructure Development Facility, 34 participating organizations were extended subloans to finance home solar systems in remote off-grid areas of Bangladesh. Source: The Asian Development Bank’s Loan Financial Information System. b2. L2454: ($82 million) Increased Canceled Last Original during during Revised Amount Undisburse Allocation Implementation Implementation Allocation Disbursed d Balancea Subloan (1) (2) (3) (4=1+2-3) (5) (6 = 4 – 5) ECPVL 30.00 0 0 30.00 30.00 0 SMPCL 22.00 0 0 22.00 22.00 0 REPL 30.00 0 0 30.00 30.00 0 Total ($ equivalent) 82.00a 0 0 82.00a 82.00b 0 ECPVL = Energypac Confidence Power Venture Chittagong Limited, SMPCL = Summit Meghnaghat Power Company Limited, REPL = Regent Energy and Power Limited. Note: No partial cancellations and undisbursed balance. a United States dollar equivalent as per the report and recommendation of the President. b United States dollar equivalent as of the date of closing of the loan account. Source: The Asian Development Bank’s Loan Financial Information System. C. Implementation Data 1. Number of subloans 29 2. Sector distribution of subloans iv Sector Number of Projects/POs Actual ($) Power 3 82,000,000 Telecommunications 2 4,999,981 Renewable Energy 24 76,664,037 Total 29 163,664,025 PO = partner organizations 3. Size of subloans (actual) Range Number of Subloans Aggregate Amount ($) Up to $5,000,000 24 25,573,397 From $5,000,001 to $15,000,000 0 0 From $15,000,001 to $25,000,000 2 37,972,223 Over $25,000,001 3 100,118,405 Total 29 163,664,025 18. Project Performance Report Rating Ratings Implementation Period Development Objectives Implementation Progress From 1 April 2011 to 30 June 2011 Satisfactory Satisfactory From 1 July 2011 to 30 September 2011 Satisfactory Unsatisfactory From 1 October 2011 to 31 December 2011 Satisfactory Satisfactory From 1 January 2012 to 30 June 2012 Satisfactory Partly Satisfactory From 1 July 2012 to 30 September 2012 Satisfactory Satisfactory From 1 October 2012 to 31 March 2013 Satisfactory Partly Satisfactory From 1 April 2013 to 30 June 2013 Satisfactory Satisfactory From 1 July 2013 to 30 September 2013 Satisfactory Partly Satisfactory From 1 October 2013 to 31 March 2018 Satisfactory Satisfactory Single Project Rating From 1 April 2011 to 30 June 2011 On Track From 1 July 2011 to 30 September 2011 Actual Problem From 1 October 2011 to 31 December 2011 On Track From 1 January 2012 to 30 June 2012 Potential Problem From 1 July 2012 to 30 September 2012 On Track From 1 October 2012 to 31 March 2013 Potential Problem From 1 April 2013 to 30 June 2013 On Track From 1 July 2013 to 30 September 2013 Potential Problem From 1 October 2013 to 31 March 2018 On Track Source: eOps of the Asian Development Bank.