India: India City Gas Distribution (CGD) Financing AGPCGPL (AIIB-000318)

Regions
  • South Asia
Where the impacts of the investment may be experienced.
Countries
  • India
Where the impacts of the investment may be experienced.
Specific Location
28 districts in Andhra Pradesh, Karnataka, Kerala and Tamil Nadu
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 20, 2021
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
AG&P City Gas Private Limited
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 557.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Aug 1, 2021

Disclosed by Bank Dec 13, 2019


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Project Description
 

OBJECTIVE

According to the bank documents, this project will finance the development of city gas distribution (CGD) network in 9 geographical areas (the "Project")  across the states of Andhra Pradesh (with 2 GAs), Karnataka (with 5 GAs), Kerala and Tamil Nadu (with 1 GA each), thereby reducing consumption of more polluting alternative petroleum products. These projects will be developed by a special purpose vehicle known as AGP City Gas Private Limited (AGPCGPL) and awarded by the Petroleum and Natural Gas Regulatory Board via an international competitive bid. The target of the project is to connect 10 million residential households to piped natural gas (PNG), install 1,351 compressed natural gas (CNG) stations to supply to the transport sector, and lay 16,186 inch-km of steel pipelines.

 

ENVIRONMENTAL AND SOCIAL INFORMATION

  • The project has been screened and reviewed with reference to AIIB's Environmental and Social Policy (ESP) and Environmental and Social Standards (ESSs). ESS 1 (Environmental and Social Assessment and Management) and ESS 2 (Involuntary Resettlement) are applicable. The project has been categorized as Category B on the basis of expectation that (i) the general environmental and social impacts of the construction works are localized, (ii) the impacts are expected to be reversible and temporary in nature, and (iii) can be successfully managed using good practice in an operational setting.
  • The project is co-financed with the Development Bank of Austria (OeEB). Both Banks' Environmental and Social Policies have been harmonised and applied.
  • As subprojects hacvent been identified, an Environmental and Social Management Planning Framework (ESMPF) with a generic Environmental and Social Management Plan (ESMP) and a Resettlement Planning Framework has been prepared.
  • Consultations were conducted for the ESMPF preparation. Sub-projects' meaningful consultations will be further strengthened in phases during the ESIAs/ESMPs preparation, in accordance with national guidelines on restrictions imposed due to the COVID-19 pandemic.
  • The ESMPF has been posted on AGPCGPL's website and will be made available in hard copies in the sub-project areas. During Project implementation, ESMPs prepared for sub- projects in all 9 GAs (and Resettlement Plan, if applicable) will be disclosed online and made accessible to Project Affected Peoples (PAPs) in English and local languages.

SUB-PROJECTS

Accoridng to the ESMPF, the following are the 9 groegraphical areas for which AG&P was granted authorisation by PNGRB:

1.Anantpur and YSR (Kadapa)-Andhra Pradesh

2. Sri Potti Sriramulu Nellore- Andhra Pradesh

3.Chittoor, Kolar and Vellore-Andhra Pradesh, Karnataka and Tamil Nadu

4. Bagalkot, Koppal and Raichur- Karnataka

5.Chikkamagaluru, Hassan and Kodagu- Karnataka

6.Kalaburagi and Vijayapura- Karnataka

7.Mysuru, Mandya and Chamaraja-Karnataka

8.Uttara Kannada, Haveri and Shivamogga-Karnataka

9.Alapuzzha, Kollam and Thiruvananthapuram-Kerala

AG&P had previously, during the Ninth Round of bidding by PNGRB, secured three (3) GA licences for Kanchipuram and Ramanathapuram districts in Tamil Nadu, and Barmer, Jaisalmer & Jodhpur districts in Rajasthan which are currently in advanced stages of planning.

For the purpose of the Environmental and Social Management Planning Framework (ESMPF), two of the sample geographical areas, i.e. Mysuru GA and Allapuzha GA, have been selected for understanding the baseline conditions and assessing potential E&S impacts during sub-project construction, operation and decommissioning stages.

GRIEVANCE REDRESSAL

  • External and Internal Grievance Redress Mechanisms (GRMs) at the project level for PAPs and workers respectively have been developed in accordance with the requirements of the Bank's ESP.
  • Locally appropriate public consultation and disclosure process will be used to disseminate information about the GRMs including the Project-affected People's Mechanism of AIIB.
  • Communities and individuals who believe that they are adversely affected by the Project will be able to submit complaints to the project-level GRM first for their resolution.
Investment Description
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Private Actor Relationship

Parent Company: AGP International Holdings Pte Ltd., Singapore (AGPIHPL)


Sponsors/Shareholders: AG&P LNG Marketing Pte Limited (AGPLNG, 84.64%); Atlantic Gulf & Pacific Company of Manila (AG&P Manila, 15.36%)

Private Actors Description

AG&P City Gas Private Limited (hereinafter referred to as ‘AGPCGPL’) is a special purpose vehicle promoted by AG&P LNG Marketing Pte. Ltd., Singapore (“ALMPL”) and Atlantic Gulf & Pacific Company of Manila (“AGPM”) for the development of City Gas Distribution (CGD) networks in India.

AG&P Global is a Singapore based company with business services that include development, engineering, procurement and construction for onshore and offshore gas infrastructure, LNG logistics, LNG marketing and delivery of natural gas straight to industrial, commercial, vehicular and domestic customers. The city gas distribution business of AG&P is across India and Indonesia.

In India, AG&P is one of the largest private players with CGD authorisations from the Petroleum & Natural Gas Regulatory Board (PNGRB) to exclusively supply piped natural gas (PNG) and compressed natural gas (CNG) 12 geographical areas (GA) in 28 districts in Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Rajasthan. The India headquarters is in Delhi and CGD operational headquarters is in Chennai with multiple satellite offices across the concession areas.


Contact Information

PROJECT TEAM LEADER

Amit Kumar

Senior Investment Operations Specialist

amit.kumar@aiib.org

 

BORROWER

Nishant Nehru

Vice President

nishant.nehru@agpglobal.com

 

IMPLEMENTING ENTITY

Abhilesh Gupta

Chief Financial Officer

abhilesh.gupta@agpglobal.com

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html