The World Bank Report No: ISR15608 Implementation Status & Results India Financing Public Private Partnerships (PPPs) in Infrastructure through Support to the India Infrastructure Finance Company Ltd (P102 771) Public Disclosure Copy Operation Name: Financing Public Private Partnerships (PPPs) in Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 13-Sep-2014 Infrastructure through Support to the India Infrastructure Finance Company Ltd (P102 771) Country: India Approval FY: 2010 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Key Dates Board Approval Date 22-Sep-2009 Original Closing Date 30-Sep-2015 Planned Mid Term Review Date 09-May-2013 Last Archived ISR Date 03-Feb-2014 Effectiveness Date 05-Nov-2009 Revised Closing Date 30-Sep-2015 Actual Mid Term Review Date 03-Jun-2013 Project Development Objectives Financing Public Private Partnerships (PPPs) in Infrastructure through Support to the India Infrastructure Finance Company Ltd (P102771) Project Development Objective (from Project Appraisal Document) The objective of the Project is to strengthen IIFCL’s capacity for infrastructure PPP financing through piloting new instruments and implementation approaches. Has the Project Development Objective been changed since Board Approval of the Program? ● Yes No Component(s) Component Name Component Cost Long term finance for infrastructure projects 195.00 Capacity Building and Project Implementation through recipient executed grant funds 5.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The India Infrastructure Finance Company Limited (IIFCL) project has completed close to five years of implementation. Project progress had been very slow for the first four years, and Government of India requested that the Project be restructured including cancellation of US$1 billion, which would enable the amount thus freed up to be allocated to other infrastructure projects. Given the importance of PPPs in India the balance amount of US$195 million was proposed to remain with IIFCL to enable funding to PPPs alongside a mutual learning process on financial, fiduciary and safeguards aspects for the Bank and IIFCL. This restructuring has now been made effective. Page 1 of 5 The World Bank Report No: ISR15608 The objective of the restructured Project is to strengthen IIFCL’s capacity for infrastructure PPP financing through piloting new instruments and implementation approaches. The Project components remain as before. The key changes are: (i) a reduction of the loan size to US$195 million; (ii) a revision of the Project Development Objective (PDO) to reflect the proposed piloting and learning approach; (iii) focus on identification of more ready sub-projects, in Category B and C direct financing sub-projects and in ‘Take-Out’ financing (loan Public Disclosure Copy book re-assignment that helps improve sub-project viability); and (iv) enhanced reliance on IIFCL’s fiduciary and safeguards capacity. Implementation of the restructured project has started in earnest with the project showing better traction taking cumulative disbursements to US$65.4 million till June 2014 on the credit line (both category A and B/C projects). Locations Country First Administrative Division Location Planned Actual India State of Orissa State of Orissa India NCT New Delhi India State of Maharashtra State of Maharashtra India Madhya Pradesh Jabalpur ✔ India State of Gujarat State of Gujarat India State of Andhra Pradesh State of Andhra Pradesh Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Total size of sub-projects (project costs) Amount(USD) Value 140.00 480.50 650.00 supported by IIFCL under the Project (US$m). Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments Amounts are in USD millions Cumulative amount of Take-Out financing Amount(USD) Value 1310.00 1212.00 1700.00 provided by IIFCL (US$m). Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments Amounts are in USD millions Decline in $ terms - INR:USD Public Disclosure Copy movement from 54 to 60 IIFCL’s safeguards management capacity is Text Value Sufficient only for Category B Category A capacity building Strong safeguards enhanced and C in process, sufficient for management capacity Category B and C Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments Page 2 of 5 The World Bank Report No: ISR15608 IIFCL’s fiduciary management capacity is Text Value Moderate Moderate Strong fiduciary management enhanced capacity Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Public Disclosure Copy Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target (i) Number of eligible infrastructure Number Value 1.00 7.00 10.00 projects that receive Bank funding support Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 through IIFCL Comments One transmission, one solar, four roads, one port terminal sub-project Size of IIFCL’s safeguards team (regular staff) Number Value 2.00 2.00 5.00 Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments % of the loan disbursed through IIFCL to Percentage Value 2.00 33.00 100.00 selected infrastructure sub-projects Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments % of sub-projects under Take Out that benefit Percentage Value 0.00 0.00 60.00 from at least 75 basis points cost efficiency Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments Increase in the amount of private capital Amount(USD) Value 66.40 64.80 85.00 available for infrastructure projects (US$ bn) Date 31-Mar-2013 31-Mar-2014 30-Sep-2015 Comments Amounts in US$ billion $ value impacted by INR:USD movt Number of IIFCL person-days participated in Number Value 0.00 0.00 200.00 training and capacity-building events. Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Public Disclosure Copy Comments Development and implementation of IPL Text Value No IPL Business Plan IPL Business Plan completed Implementation of business business plan. plan launched Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments by Deloitte Implementation of Integrated Risk Text Value IRM plan approved IRM plan approved IRM implementation plan Management (IRM) system beyond year 1 activities initiated Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Page 3 of 5 The World Bank Report No: ISR15608 Comments Focus should now be on effective implementation Implementation of HR strategy and policy Text Value HR strategy and policy HR strategy and policy HR strategy and policy Public Disclosure Copy manual manual approved manual approved manual fully implemented. Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments Focus should now be on effective implementation Safeguards approach for Take Out financing Text Value None In process. Approach to be Yes adopted and implemented by IIFCL piloted for atleast 1 sub project by December 2014 Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments Procurement approach adopted and Text Value None Yes Yes implemented by IIFCL Date 31-Mar-2013 30-Jun-2014 30-Sep-2015 Comments Data on Financial Performance (as of 05-Jun-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P102771 IBRD-76130 Effective 22-Sep-2009 13-Oct-2009 05-Nov-2009 30-Sep-2015 30-Sep-2015 P102771 TF-96466 Effective 22-Mar-2010 29-Mar-2010 29-Mar-2010 31-Mar-2012 31-Mar-2015 P120582 TF-96852 Closed 14-May-2010 19-May-2010 19-May-2010 31-Jul-2011 31-Jul-2011 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102771 IBRD-76130 Effective USD 1,195.00 195.00 1,000.00 65.40 129.60 34.00 P102771 TF-96466 Effective USD 1.40 1.40 0.00 0.92 0.48 66.00 P120582 TF-96852 Closed USD 1.40 0.13 0.06 0.13 0.00 100.00 Public Disclosure Copy Disbursement Graph Page 4 of 5 The World Bank Report No: ISR15608 Public Disclosure Copy Key Decisions Regarding Implementation The project has now successfully completed a Level I restructuring (approved on December 12, 2013) which has been made effective February 19, 2014 post receipt of countersigned loan amendment letter. Restructuring History Level one Approved on 12-Dec-2013 Related Projects P119297-Building Capacity & Strengthening Monitoring & Implementation Capability of IIFCL, P120582-PPIAF: Business Plan for IIFCL, P121020-PPIAF: Risk Management for IIFCL Public Disclosure Copy Page 5 of 5