Sikkim Major District Roads Upgradation Project (ADB-52159-003)

  • South Asia
Geographic location where the impacts of the investment may be experienced.
  • India
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Roads and Bridges Department, Government of Sikkim
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Housing & Property
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 2.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 2.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 3.13 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Mar 22, 2022

Disclosed by Bank May 3, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank, this project seeks to create a sound network of roads in Sikkim by upgradation of major district roads, other district roads, and replacing weak bridges. These roads will be linked to the national highway and state highway network and facilitate connectivity to important towns, commercially important rural areas, pilgrimage and other tourist destinations in the State.

A consulting firm engaged via Project Readiness Financing (PRF) will finance consulting services for (i) initial screening of the tentative list of candidate roads and bridges; (ii) feasibility studies of the shortlisted roads for final selection; (iii) detailed design for selected road and bridge subprojects, including the environmental and social safeguard assessments and preparation of environmental and social safeguard planning documents, cost estimate, economic analysis, due diligence and capacity building on financial management, assistance and capacity building on procurement, preparation of bid documents and supporting the bidding process until contract award; and (iv) providing assistance for developing the institutional strengthening and capacity development component of the ensuing proposed Project (Sikkim Major District Roads Upgradation Project).

As defined in the ADB Operations Manual, "Project readiness financing, in the form of a loan, finances project preparation and design activities for investments that are expected to be financed under one or more ensuing ADB financed projects. Eligible expenditures include: (i) Consulting services for project preparation, such as detailed engineering design, feasibility study, and capacity building for future projects, and limited project startup activities; and (ii) Pilot testing of project designs, including the cost of equipment and works". It is specified in the Manual that ADB can consider project readiness financing for a series of projects, which may be finalized after loan approval and do not need to be confined to a particular sector. (

Disaster risk resilience and climate change impact factors will be taken into consideration in the design of resilient all-weather roads and bridges in the ensuing subprojects. A climate risk and vulnerability assessment will be done for the ensuing subprojects. Gender analysis and a gender equality and social inclusion plan will be prepared under the PRF for incorporation of gender elements in the design of the ensuing project. 



People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

According to the bank's project readiness financing report,the ensuing project will avoid subprojects in or close to national parks, wildlife sanctuaries, or any other environmentally sensitive areas. Sikkim has mountainous terrain and forest zones, and it is likely that some sections of the selected roads may pass through forest areas. However, the expected environmental impacts of the selected subprojects are not substantial, and mitigation measures will be implemented to minimize them. Sikkim is a small state and road sections passing through hilly terrain are less likely to pass through populated areas and thus requiring significant resettlement and/or land acquisition. Any impact on indigenous peoples is expected to be limited. Improvement of the roads is expected to have positive impacts on the social and economic life of the population in the subproject influence zone, including indigenous peoples.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

This project is proposed to be financed from ADB ordinary capital resources, with indicative financing of $75 million and expected approval in 2023. The specific loan amount for the ensuing project will be determined on completion of the detailed engineering design for the selected subprojects, the implementation period, absorptive capacity of the executing agency and the contracting industry, and the availability of counterpart funding from the government of Sikkim. The cost of climate adaptation and mitigation for the ensuing project will be confirmed during PRF implementation when more information is available.

The government has requested a regular loan of $2,500,000 from ADB’s ordinary capital resources to help finance project preparation and design activities. The loan will have a 15-year term, including a grace period of 3 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, and such other terms and conditions set forth in the draft loan agreement.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Responsible ADB Officer Motwani, Anil
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Roads and Bridges Department State of Sikkim
Nirman Bhawan, P.O. Gangtok

Team members: Sonal Arora, Senior Operations Assistant, INRM, SARD Ashish Ranjan, Associate Project Analyst, INRM, SARD Bhisma Rout, Programs Analyst, INRM, SARD Prabhasha Sahu, Senior Project Officer, INRM, SARD K. Baran Sarkar, Senior Financial Management Officer, INRM, SARD Rekha Vankina Sri, Principal Counsel, Office of the General Counsel

Peer reviewer: Masahiro Nishimura, Senior Rural Development Specialist, SARD


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