Completion Report Project Number: 23241 Loan Number: 1556 & 1557-IND November 2011 India: Mumbai and Chennai Ports Project CURRENCY EQUIVALENTS Currency Unit – Indian rupees (Re/Rs) At Appraisal At Loan Closure (1 September 1997) (11 September 2002) Rs1.00 = $0.02753 $0.02063 $1.00 = Rs36.33 Rs48.47 ABBREVIATIONS ADB – Asian Development Bank BOT – build-operate-transfer CHPT – Chennai Port Trust EIRR – economic internal rate of return FIRR – financial internal rate of return JNPT – Jawaharlal Nehru Port Trust MBPT – Mumbai Port Trust MOST – Ministry of Surface Transport MOT – marine oil terminal O&M – operation & maintenance PCR – project completion review PIO – Project Implementation Office TA – technical assistance TAMP – Tariff Authority for Major Ports TCR – technical assistance completion report TEU – twenty-foot equivalent unit NOTES (i) The fiscal year (FY) of the Government ends on 31 March. “FY” before a calendar year denotes the year in which the fiscal year ends. For example, FY2000 begins on 1 April 1999 and ends on 31 March 2000. (ii) In this report, “$” refers to US dollars. Vice President X. Zhao, Operations 1 Director General S. H. Rahman, South Asia Department (SARD) Director H. Kim, Country Director, India Resident Mission, SARD Team leader A. K. Motwani, Senior Project Officer (Transport), India Resident Mission, SARD Team members M. Gomes, Project Analyst, India Resident Mission, SARD M. Sharma, Senior Project Assistant, India Resident Mission, SARD P. Sahu, Associate Project Analyst, India Resident Mission, 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. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 2 D. Disbursements 3 E. Project Schedule 4 F. Implementation Arrangements 4 G. Conditions and Covenants 5 H. Related Technical Assistance 5 I. Consultant Recruitment and Procurement 6 J. Performance of Consultants, Contractors, and Suppliers 7 K. Performance of the Borrower and the Executing Agency 7 L. Performance of the Asian Development Bank 7 III. EVALUATION OF PERFORMANCE 7 A. Relevance 7 B. Effectiveness in Achieving Outcome 8 C. Efficiency in Achieving Outcome and Outputs 8 D. Preliminary Assessment of Sustainability 9 E. Impact 9 IV. OVERALL ASSESSMENT 10 APPENDIXES 1. Chronology of Major Events in Project and TA Processing and Implementation 11 2. Project Framework 13 3. Average Annual Exchange Rate 16 4. Summary of Contracts Funded by the Asian Development Bank 17 5. Project Costs (Estimate and Actual) 19 6. Projected and Actual Disbursements of Loan Proceeds 20 7. Project Implementation Schedule 21 8. Status of Compliance with Major Loan Covenants 23 9. Operational Efficiency and Handling Costs at Mumbai and Chennai Ports 30 10. Economic Reevaluation 31 11. Financial Reevaluation 39 12. Quantitative Assessment of Overall Project Performance 44 i BASIC DATA A. Loan Identification 1. Country India 2. Loan Numbers 1556 & 1557-IND 3. Project Title Mumbai Port Project (Loan 1556-IND) and Chennai Port Project (Loan 1557-IND) 4. borrowers a. Mumbai Port Project Mumbai Port Trust b. Chennai Port Project Chennai Port Trust 5. Executing Agency a. Mumbai Port Project Mumbai Port Trust b. Chennai Port Project Chennai Port Trust 6. Amount of Loan a. Mumbai Port Project Original Loan Amount $97.8 million Cancellation on Closure $54.383 million (1 June 2001) Net Loan Amount $43.417 million b. Chennai Port Project Original Loan Amount $15.2 million First Partial Cancellation $6.7 million (10 Jan 2000) Cancellation on Closure $3.988 million (11 Sep 2002) Net Loan Amount $4.512 million 7. Project Completion Report Number 1275 B. Loan Data a 1. Appraisal – Date Started 5 December 1994 – Date Completed 16 December 1994 2. Loan Negotiations – Date Started 27 August 1997 – Date Completed 29 August 1997 3. Date of Board Approval 29 September 1997 4. Date of Loan Agreement 25 September 1998 a Further processing was delayed due to several factors, including concerns relating to disbursement readiness and inadequate progress on policy reforms. Reappraisal was undertaken from 26 May to 11 June 1997 to formulate the project and its policy agenda. ii 5. Date of Loan Effectiveness (a) Mumbai Port Project – In Loan Agreement 24 December 1998 –Actual 6 January 1999 – Number of Extensions One (b) Chennai Port Project – In Loan Agreement 24 December 1998 – Actual 23 February 1999 – Number of Extensions Three 6. Closing Dates (a) Mumbai Port Project – In Loan Agreement 30 September 2003 b – Actual 1 June 2001 – Number of Extensions None (b) Chennai Port Project – In Loan Agreement 30 March 2003 c – Actual 11 September 2002 – Number of Extensions None 7. Terms of Loan – Interest Rate pool-based variable lending rate system for US dollar loans – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Disbursements a. Dates (i) Loan 1556-IND: Mumbai Port Project Initial Disbursement Final Disbursement Time Interval 4 February 1999 1 June 2001 28 months Effective Date Original Closing Dateb Time Interval 6 January 1999 30 September 2003 56 months (ii) Loan 1557-IND: Chennai Port Project Initial Disbursement Final Disbursement Time Interval 1 June 1999 1 June 2002 36 months Effective Date Original Closing Datec Time Interval 23 February 1999 30 March 2003 49 months b The loan was closed on 1 June 2001 during the implementation period and the undisbursed amount was canceled. Mumbai Port Trust decided to complete the project through its own funds. c The loan was closed on 11 September 2002 during the implementation period and the undisbursed amount was canceled. Chennai Port Trust decided to complete the project through its own funds. iii b. Amount ($ million) Last Original Partial Amount Undisbursed Category Revised Allocation Cancellations Disbursed Balance Allocation A. Loan 1556-IND: Mumbai Port Projecta 1. Civil Works 61.40 0.00 61.40 37.03 24.37 1A. Submarine Pipelines 35.70 0.00 35.70 35.51 0.19 1B. Others 25.70 0.00 25.70 1.52 24.18 2. Equipment 3.70 0.00 3.70 0.00 3.70 3. Consulting Services 7.00 0.00 7.00 3.07 3.93 4. Interest and Commitment Charges 12.00 0.00 12.00 3.32 8.68 5. Unallocated 13.70 0.00 13.70 0.00 13.70 Subtotal (A) 97.80 0.00 97.80 43.42 54.38 B. Loan 1557-IND: Chennai Port Projectb 1. Civil Works 12.00 5.00 7.00 4.01 2.99 2. Interest and Commitment Charges 1.50 0.00 1.50 0.50 1.00 3. Unallocated 1.70 1.70 0.00 0.00 0.00 Subtotal (B) 15.20 6.70 8.50 4.51 3.99 Total (A+B) 113.00 6.70 106.30 47.93 58.37 a An undisbursed loan amount of $54.38 million was canceled at loan closing on 1 June 2001. b An undisbursed loan amount of $3.99 million was canceled at loan closing on 11 September 2002. A partial cancellation of $6.7 million was made on 10 January 2000. Source: Asian Development Bank 9. Local Cost (Financed) None C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 150.50 128.59 Local Currency Cost 94.50 106.99 Total 245.00 235.58 iv 2. Financing Plan ($ million) Appraisal Estimate Actuala Source Foreign Local Total Foreign Local Total Mumbai Port Project ADB 97.80 0.00 97.80 43.42 0.00 43.42 MPBT 0.00 55.30 55.30 28.50 45.26 73.76 Subtotal 97.80 55.30 153.10 71.92 45.26 117.18 Chennai Port Project ADB 15.20 0.00 15.20 4.51 0.00 4.51 CHPT 9.50 30.40 39.90 5.90 11.44 17.34 Private Sector 28.00 8.80 36.80 46.26 50.29 96.55 Subtotal 52.70 39.20 91.90 56.67 61.73 118.40 Total Project ADB 113.00 0.00 113.00 47.93 0.00 47.93 MBPT + CHPT 9.50 85.70 95.20 34.40 56.70 91.10 Private Sector 28.00 8.80 36.80 46.26 50.29 96.55 Total 150.50 94.50 245.00 128.59 106.99 235.58 ADB = Asian Development Bank, CHPT = Chennai Port Trust, MBPT = Mumbai Port Trust a The project was closed during implementation and the undisbursed amount was canceled. The project was completed by MBPT and CHPT through their own funds. 3. Cost Breakdown by Project Component ($ million) Appraisal Estimate Actual Project Component Foreign Local Total Foreign Local Total I. Mumbai Port Project A. Base Cost 72.10 43.90 116.00 68.60 45.26 113.86 B. Contingencies 13.70 11.40 25.10 0.00 0.00 0.00 C. Interest during Construction 12.00 0.00 12.00 3.32 0.00 3.32 Subtotal 97.80 55.30 153.10 71.92 45.26 117.18 II. Chennai Port Project A. Base Cost 45.00 34.70 79.70 56.17 61.73 117.90 B. Contingencies 6.20 4.50 10.70 0.00 0.00 0.00 C. Interest during Construction 1.50 0.00 1.50 0.50 0.00 0.50 Subtotal 52.70 39.20 91.90 56.67 61.73 118.40 Total (I + II) 150.50 94.50 245.00 128.59 106.99 235.58 v 4.