DESCRIPTION

The Bangalore Cluster City Development Investment Program (the Program) aims to increase the city's competitiveness, in a way that also promotes inclusive and environmentally sustainable growth. The program will provide physical and non-physical investment in selected clusters to: (i) improve regional and metropolitan planning, (ii) upgrade key economic and social infrastructure, and (iii) enhance urban governance (including service delivery) to create a better business and investment climate. The Program proposes to achieve the above objectives by: (i) ensuring that multi-stakeholder demand-based (cluster) infrastructure development is preceded by metropolitan economic and sector planning, (ii) promoting sectoral coordination and convergence, and (iii) establishing a strong partnership between public and private sectors.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

The Program will seek to use a number of innovative financing, capacity development, and reform instruments. The Bangalore Metropolitan Region has been selected for support under the program based on (i) its potential to achieve enhanced growth, productivity and employment; (ii) prevalent enabling environment for accelerated industrialization; (iii) the State's reform willingness and exemplary initiatives; and (iv) opportunity for development and testing of new urban development models and potential for replicability in Karnataka and India.

The investment program will be supported through a multitranche financing facility (MFF). The MFF is particularly well suited for this investment as it is the most effective modality to (i) maximize and measure project results in individual localized geographical areas; (ii) enable feedback, learning and incorporation of lessons in subsequent tranches; and (iii) blend capacity development and infrastructure provision. The MFF will enable the client to (i) programmatically implement a structured roadmap that takes into consideration the city's economic, social, and environmental needs; and (ii) blend instruments that optimize private and public interventions and leverage multi-stakeholder finance.

IMPACT

Inclusive and environmentally sustainable economic growth in Bangalore Metropolitan Region.

OUTCOME

Improved and sustained productivity and competitiveness in selected BMR clusters.

CONSULTING SERVICES

Firm and individual consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). Consulting firms will be recruited using Quality and Cost-Based Selection (QCBS) method with a quality:cost ratio of 80:20. Advance contracitng and retroactive financing will be considered.

PROCUREMENT

All procurement to be financed under the project will be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Advance contracting and retroactive financing will be considered.

MFF Facility Concept: Bangalore Cluster City Development Project
Ordinary capital resources US$ 300.00 million

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main

CONTACTS

Responsible ADB Officer Matsunaga, Akira
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Karnataka Urban Infrast. Dev. and Finance Corp.
Silver Jubilee Block
2nd Cross, Mission Road, Bangalore-27
INDIA