Visakhapatnam-Chennai Industrial Corridor Development Program (ADB-48434-002)

Countries
  • India
Where the impacts of the investment may be experienced.
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
Approved
Bank Risk Rating
U
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
Sep 20, 2016
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.
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)
$ 505.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Aug 9, 2017

Disclosed by Bank Nov 9, 2016


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Project Description
DESCRIPTION The Visakhapatnam-Chennai Industrial Corridor Development Program (VCICDP) will complement the ongoing efforts of the Government of Andhra Pradesh (GoAP) to enhance industrial growth and create high quality jobs. The VCICDP comprises a multitranche financing facility (MFF), a grant, and a policy-based loan (PBL). The MFF and the grant will support priority infrastructure investments in the Visakhapatnam-Chennai Industrial Corridor (VCIC) and the PBL will support policy reforms and institutional development in the state. PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY The Andhra Pradesh Industrial Development Policy (2015) aims to establish state-of-the art infrastructure, promote manufacturing, enhance inclusivity, foster innovation, and create employment opportunities across sectors. The GoAP has prepared a comprehensive industrial sector road map, strategic context, policy framework and investment plan to enhance industrial growth and create high-quality jobs. With support from ADB, the GoAP has also prepared a conceptual development plan and a regional perspective plan for the VCIC, which include an infrastructure strategy to drive economic growth and the identification of nodes for industrial development, high-potential industrial sectors, and a set of priority projects. The conceptual development plan indicates that the VCIC, with its long coastline and strategically located ports, provides multiple international gateways to connect India with vibrant global production networks and to facilitate regional integration. The regional perspective plan has identified the VCIC's high potential for generating additional employment and industrial output, which can be achieved from 2015 to 2045. ADB is continuing its support to the GoAP for policy reforms, improving ease of doing business, master planning of the identified industrial nodes, and adopting good practices for management of economic corridors. The VCICDP will build on the existing concentration of industries and increase the density and flow of economic activities along the VCIC in a business-induced scenario against a business-as-usual scenario. The VCICDP is in line with ADB's country partnership strategy for India. IMPACT Contribution of the manufacturing sector to the gross domestic product, trade and employment of GoAP increased CONSULTING SERVICES The project management unit will recruit consultants in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Consulting services include project management and supervision, road safety awareness, and resettlement monitoring. PROCUREMENT Procurement of civil works and goods will be carried out in accordance with ADB''s Procurement Guidelines (2015, as amended from time to time).
Investment Description
  • Asian Development Bank (ADB)
MFF Facility Concept: Visakhapatnam-Chennai Industrial Corridor Development Program Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility US$ 5.00 million MFF Facility Concept 0093-IND: Visakhapatnam-Chennai Industrial Corridor Development Program Ordinary capital resources US$ 500.00 million
Contact Information
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 Sharma, Manoj Responsible ADB Department South Asia Department Responsible ADB Division Urban Development and Water Division, SARD Executing Agencies Department of Industries & Commerce, Government of Andhra Pradesh North H Block, 3rd Floor, AP Secretariat Hyderabad, 500022