Bangalore Cluster City Development Investment Program (ADB-45216-002)

  • India
Where the impacts of the investment may be experienced.
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Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
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  • Infrastructure
  • Transport
  • Water and Sanitation
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Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2020

Disclosed by Bank Sep 21, 2016

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Project 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.


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.


Inclusive and environmentally sustainable economic growth in Bangalore Metropolitan Region.


Improved and sustained productivity and competitiveness in selected BMR clusters.


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.


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.

Investment Description
  • Asian Development Bank (ADB)

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

Contact Information


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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