Cube Invit (IFC-45754)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Ghaziabad, Dadri, Sikandrabad, Bulandshahr, Khurja, Gabhana, Aligarh
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
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
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."
Voting Date
Jul 13, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Cube Highways Trust
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Infrastructure
  • Transport
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 278.00 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)
$ 278.00 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)
$ 1,346.00 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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 19, 2023

Disclosed by Bank Aug 1, 2023

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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.

As stated by the IFC, Cube Highways Trust, a private listed InvIT, currently has 18 road assets (toll and annuity) under it and can acquire 7 more assets (toll and HAM) under ROFO arrangement with Sponsors of Trust. The Company has raised debt at the Company level to replace individual project finance debt, and conduct maintenance capex of the operating road assets.

The use of proceeds from IFC’s investment has been defined for this one road asset, namely Ghaziabad Aligarh Expressway Private Limited: A 125.175 km 4 laned road to be expanded to 6 lane, wherein 4 lanes have been operational since 2016, and acquired by Cube in 2022 connecting Ghaziabad to Aligarh in the state of Uttar Pradesh.

The project involves: (i) expanding from four to six lane effectively for about 83.4 km (as the remaining length includes: 14.7 km of structures which are already built as per six lane configurations; 20.3 km of Aligarh bypass which will be retained as 4-lane; 7.1 km of existing road which will be provided for development of Power plant at Khurja (as 9.3-km greenfield bypass road is being constructed by NHAI through a separate EPC contractor as described below); and 0.750 km toll plaza pavement length; and (ii) operations and maintenance of the road. The greenfield bypass road has been constructed by the National Highway Authority of India (NHAI) in order to replace a stretch of approximately 7.1 km of the existing road falling within the premises of a super thermal power plant to be constructed at Khurja. Land acquisition for the Khurja bypass is the responsibility of NHAI along with ensuring all regulatory compliances. NHAI will hand over the constructed and ready to operate bypass to the concessionaire. Provisional completion certificate for the existing road was received from NHAI in June 2015 for 103.9 km and in November 2016 for 9.4 km stretch. The road traverses through predominantly agricultural land and built-up areas and towns, including the towns of Ghaziabad, Dadri, Sikandrabad, Bulandshahr, Khurja, Gabhana and Aligarh where bypasses have been provided.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Cube Highways Trust operates as an infrastructure investment trust. The Company invests, develops, and manages roads and highways projects. Cube Highways Trust serves customers in India.

As stated by the IFC, the Trust is owned by Cube Highways Group (59.50%), British Columbia Investments Management Corporation (BCI; 19%), Mubadala Investment Company PJSC (Mubadala; 6%), domestic mutual funds insurance companies and other domestic institutional investors (15.50%) calculated basis ordinary units. BCI is one of the largest asset managers in Canada and provides investment management services to public sector entities in British Columbia. Mubadala is the sovereign investment fund of the Government of Abu Dhabi with a portfolio that spans across six continents in multiple sectors and asset classes.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
British Columbia Investment Management Corp Investor Finance invests in Cube Highways Trust Client Infrastructure
Cube Highways Group Parent Company Infrastructure owns Cube Highways Trust Client Infrastructure
Mubadala Investment Co PJSC Investor Finance invests in Cube Highways Trust Client Infrastructure

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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Cube Highways Trust:

Saurabh Bansal
Dr. Ashok Sharma - Chief E&S Officer
Phone: +91 (0120) 4868300
Email: ashok.sharma@cubehighways.com
Address: World Trade Tower (WTT), Unit No.1901, 19th Floor, Tower B, NOIDA-201301 (UP) INDIA
Website: https://www.cubehighways.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works