National Capital Region Urban Infrastructure Financing Facility

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National Capital Region Urban Infrastructure Financing Facility Completion Report Project Numbers: 41598-013 and 41598-023 MFF Number: 0044 Loan Number: 2660 July 2018 India: National Capital Region Urban Infrastructure Financing Facility This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011. CURRENCY EQUIVALENTS Currency unit – Indian rupee/s (₹) At Appraisal At Project Completion (18 July 2010) (12 December 2017) ₹1.00 = $0. 0214 $0.0155 $1.00 = ₹46.78 ₹64.34 ABBREVIATIONS ADB – Asian Development Bank CAGR – compound annual growth rate CMA – counter magnet area DMF – design and monitoring framework DPR – detailed project report EGM – effective gender mainstreaming EIRR – economic internal rate of return EOCC – economic opportunity cost of capital ESMS – environmental and social management system GAP – gender action plan IPPMS – investment program performance monitoring system km – kilometer MFF – multitranche financing facility NCR – National Capital Region NCRPB – National Capital Region Planning Board NCRUIFF – National Capital Region Urban Infrastructure Financing Facility O&M – operation and maintenance PCR – project completion report PFR – periodic financing request PHED – Public Health Engineering Department PMC – project management consultant PMU – project management unit PPMS – project performance monitoring system PPP – public–private partnership PSMG – project sanctioning and monitoring group SGE – some gender elements SPS – Safeguard Policy Statement TA – technical assistance NOTES (i) The fiscal year (FY) of the National Capital Region Planning Board and the Government of India begins on 1 April and ends on 31 March. “FY” before a calendar year denotes the year in which the fiscal year starts, e.g., FY2017 begins on 1 April 2017 and ends on 31 March 2018. (ii) In this report, “$” refers to United States dollars. Vice-President Wencai Zhang, Operations 1 Director General Hun Kim, South Asia Department (SARD) Director Sekhar Bonu, Director, Urban Development and Water Division, SARD Team leader Luca Di Mario, Urban Development Specialist, SARD Team members Saswati Belliappa, Safeguards Specialist, SARD Bebedel Fabe, Project Officer, SARD Emma Rita Ramona Nava, Senior Operations Assistant, SARD Ashok Srivastava, Senior Project Officer (Urban), 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 2 A. History 2 B. Scope of Operations 2 C. Relationship with ADB and Other Lenders 3 D. Project Design and Formulation 4 E. Technical Assistance 6 III. PROJECT IMPLEMENTATION 6 A. Lending Policies 6 B. Characteristics of Subloans 6 C. Implementation and Internal Operations of Subprojects 7 D. Organization and Operations of National Capital Region Planning Board 8 E. Portfolio of National Capital Region Planning Board 9 F. Financial Statements and Ratios 10 G. Covenants 11 IV. SUBLOAN IMPLEMENTATION 11 A. Loan Appraisal 11 B. Implementation 12 V. EVALUATION OF PROJECT PERFORMANCE 12 A. Relevance 12 B. Effectiveness 13 C. Efficiency 13 D. Sustainability 14 E. Development Impact 15 F. Performance of National Capital Region Planning Board 15 G. Performance of ADB 16 H. Overall Assessment 16 VI. ISSUES, LESSONS, AND RECOMMENDATIONS 16 A. Issues and Lessons 16 B. Recommendations 18 APPENDIXES 1. Design and Monitoring Framework – Facility 19 2. Design and Monitoring Framework – Project 1 22 3. Economic Analysis 26 4. Status of Compliance with Loan Covenants 37 5. Sustainability of Subprojects Implemented under Project 1 47 6. Loans and Financial Performance of National Capital Region Planning Board 49 7. Safeguards 53 BASIC DATA A. Loan Identification 1. Country India 2. Loan number and financing source Ordinary capital resources - Facility M0044 - Project 1 LN2660 3. Loan title National Capital Region Urban Infrastructure Financing Facility 4. Borrower National Capital Region Planning Board 5. Name of financial intermediary National Capital Region Planning Board 6. Amount of loan - Facility $150,000,000 - Project 1 $78,000,000 7. Project completion report number 1693 B. Loan Data 1. Appraisal – Date started 4 March 2010 – Date completed 17 March 2010 2. Loan negotiations – Date started 23 June 2010 – Date completed 24 June 2010 3. Date of Board or Management approval (Facility) 10 August 2010 (Project 1) 18 August 2010 4. Date of loan agreement (Project 1) 17 March 2011 5. Date of loan effectiveness (Project 1) – In loan agreement 14 June 2011 – Actual 29 June 2011 – Number of extensions 1 6. Terminal date for commitments – In loan agreement Not applicable – Actual – Number of extensions 7. Loan closing date (Project 1) – In loan agreement 31 December 2014 – Actual 31 December 2014 – Number of extensions None 8. Financial closing date (Project 1) – Actual 31 May 2017 9. Terms to the borrower – Interest rate Sum of London interbank offered rate (LIBOR) and 0.60% as provided by Section 3.02 of the Loan Regulations, less ii a credit of 0.40% as provided by Section 3.03 of the Loan Regulations – Maturity (number of years) 25 – Grace period (number of years) 5 – Free limit None – Repayment terms Payable semiannually on 1 February and 1 August of each year in accordance with Schedule 1 of the loan agreement 10. Terms of relending (if any) Each subloan will carry interest at an appropriate rate and will be made on terms whereby the borrower will obtain, by a written agreement with the qualified subborrower in form acceptable to ADB, rights adequate to protect the interests of ADB and the borrower. 11. Interest rate for subloans – Original Linked to rates of 10-year government securities prevailing on the date of sanction of the project (actual ranged from 7.00% to 8.25%), excluding incentive of up to 0.25% interest rate reduction toward timely payment of principal and interest – Revised Not applicable 12. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 31 May 2012 23 December 2014 31 Effective Date Actual Closing Date Time Interval 29 June 2011 31 December 2014 42 b. Amount ($ million) Increased Cancelled Last Original during during Revised Amount Undisbursed Allocation Implementation Implementation Allocation Disbursed Balance Component (1) (2) (3) (4=1+2-3) (5) (6 = 4 – 5) Infrastructure Investments (Subloans) 75.000 2.635 (18.000) 59,635 59,635 0 Implementation Support 3.000 (2.635) 0 0.365 0.365 0 Total 78.000 0 (18.000) 60.000 60.000 0 ( ) = negative. iii Increased Cancelled Last Original during during Revised Amount Undisbursed Allocation Implementation Implementation Allocation Disbursed Balance Subloan (1) (2) (3) (4=1+2-3) (5) (6 = 4 – 5) Jhajjar Roads 21.886 3.477 18.409 18.409 0 Sonepat 16.581 8.139 8.442 8.442 0 Roads Badli Bypass 4.035 0.888 3.147 3.147 0 Pataudi Water 0.668 0.311 0.357 0.357 0 Supply Nuh Water 2.856 2.109 0.747 0.747 0 Supply Sonepat 0.798 0.099 0.897 0.897 0 Drainage Gohana 5.754 1.197 6.951 6.951 0 Lakhanmajara Bhiwani Road Gurgaon 8.357 0.844 7.513 7.513 0 Chandu Badli Road Sonepat 6.855 6.318 13.173 13.173 0 Gohana Road Total 67.790 7.614 15.768 59.635 59.635 0 ($ equivalent) Total (₹) 3,498.264 3,498.264 0 Notes: 1. Amounts are actual United States dollar equivalent (rounded off). 2. Amount of each subloan was adjusted based on eligible expenditures incurred within the loan period and up to the ADB loan amount. C. Implementation Data 1. Number of subloans – nine 2. Sector distribution of subloans Sector Projected Actual Urban transport, regional connectivity, and other 5 6 economic growth infrastructure Water supply and sanitation 1 3 Total 6 9 Projects were to be taken up in phases across different periodic financing requests. 3. Size of subloans (actual) ($ million) Range (specify amounts) Number of Subloans Aggregate Amount Up to $5 million 4 5.148 From $5 million to $10 million 3 22.906 From $10 million to $20 million 2 31.582 Over $20 million 0 0.000 4. Other breakdown of subloans – Not applicable 5. Subloans above free limit – Not applicable iv 6. Project performance report ratings Implementation Period Single Project Rating From 29 June 2011 to 31 December 2011 On track From 1 January 2012 to 31 December 2012 Potential problem From 1 January 2013 to 31 December 2013 Actual problem, On track From 1 January 2014 to 31 December 2014 On track From 1 January 2015 to 31 December 2015 On track From 1 January 2016 to 31 December 2016 On track From 1 January 2017 to 31 May 2017 On track D. Data on Asian Development Bank Missions No. of No. of Person- Name of Mission Date Persons Days Specialization of Members Fact finding 4–17 March 2010 6 60 a, b, c, d, e, f Loan inception 28 Nov–2 Dec 2011 2 10 g, h Loan review 1 17–19 Sept 2012 2 6 g, i Loan review 2 27 Nov 2012 2 2 g, j Safeguards review 1 4–8 Feb 2013 2 10 k, l Midterm review 13–17 May 2013 3 15 g, h, m Loan review 3 27 June–2 July 2014 3 11 k, l, m Safeguards review 2 25–27 March 2015 8 12 c, f, j, k, m, n, o, p Safeguards review 3 6 May 2015 2 3 j, m Project completion review 23–27 April 2018 5 23 a, h, q, r, s a = urban development specialist, b = urban transport specialist, c = counsel, d = economist, e = procurement specialist, f = social safeguards specialist 1, g = project officer 1, h = project analyst, i = project administration unit head, j = sector director, k = social safeguards specialist 2, l = environment safeguards consultant and/or specialist, m = project officer 2, n = India Resident Mission country director, o = India Resident Mission senior country specialist, p = senior external relations officer, q = project management consultant, r = financial management consultant, s = social safeguards consultant.
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