Description

The loan will partially finance the capital expenditure and expansion plans of Ocean Sparkle Limited (OSL), a leading port operations and management services provider in India, currently with an operational fleet of over 104 boats and presence in around 25 major and non-major ports in India with term-based, take-or-pay off-take contracts.
Objectives and Scope

The proposed financing, will support the funding of the OSL s capital expenditure ( capex ) plan for the next two years. The plan envisions acquisition of vessels for deployment around ports in India and other South Asian markets. All vessels are expected to be sourced from the international market. The whole acquisition process will be sequenced to ensure full vessel utilization and is scheduled to be completed within 24 months. These vessels will enhance efficiency of ports where OSL operates through more competitive privately-run harbor towage, mooring and pilotage operations.
Project Rationale and Linkage to Country/Regional Strategy

The proposed financing is consistent with ADB s Strategy 2020 as it (i) promotes export-led growth through infrastructure investment; (ii) enhances connectivity and regional integration; and (iii) promotes private sector participation in the ports sector in Asia. The Country Partnership Strategy (CPS) for India (2013-2017) highlights transport and finance for infrastructure as two of the seven core areas under Infrastructure development that support faster growth in India; the project is also aligned with the CPS priority areas specifically with regards to port development and support for the infrastructure sector through non-sovereign operations. The project is also aligned with ADB s Sustainable Transport Initiative which acknowledges under the Regional Cooperation and Integration section the importance of addressing trade growth constraints such as indirect costs associated with unreliable transit times, border-crossing delays, handling and storage costs due to poor terminal infrastructure.
Implementation Progress
Description of Project Outputs

Expand capacity of port operations Maintain environment and safeguard standards
Safeguard Categories

Environment: B
Involuntary Resettlement: C
Indigenous Peoples: C
Summary of Environmental and Social Aspects
Environmental Aspect

The environmental and social management system (ESMS) of OSL includes an integrated safety and quality management system (IMS) based on ISO 9001:2000 and ISO 14001:2004 standards, and OHSAS 18001. Under normal operations, OSL s activities have negligible environmental adverse impacts. Major environmental risks are associated with accidents. Pilots are key to the safe navigation within the pilotage area and a slight mistake could result in grounding of the vessel, oil spillage, and collision, resulting in damage to both life and environment. When the state or port authorities provide pilotage, service standards are expected to be high as selection of pilots is through set procedures and the safety of vessels is of the prime concern. Also OSL is providing high standard pilots. OSL has manuals for communication during the operations and manuals for accidents. OSL has regular staff training program and facility for its operations.
Involuntary Resettlement

OSL s operations are not expected to involve land acquisition nor cause involuntary restrictions on land use. The services provided by OSL to the ports involve provision, operations and maintenance of marine vessels, and are within the boundaries of the port complex. OSL s contracts with the port authorities usually include provision of office space, while the accommodation of the crew is provided on the vessels.
Indigenous Peoples

OSL operations are always within the port facilities. Impacts on indigenous peoples are not expected.
Stakeholder Participation and Consultation

OSL has a stakeholder engagement process with the various stakeholders including the port authorities, shipping companies and communities in the vicinity of the ports. The engagement process ensures identification of the needs of the various stakeholders and better integrates their concerns in OSL operations. OSL s corporate social responsibility initiatives include support to the local communities.

 Country: India
Borrower/Equity Investment Name     –
Project Number: 47941-001
Type or Modality of Assistance: PS
Financing: Private sector (Nonsovereign)
Status: Approved
Approval Date: 24 Oct 2014
Sector: Transport
Subsector: Water transport (non-urban)
Strategic Agendas: Environmentally sustainable growth (ESG)
Inclusive economic growth (IEG)
Regional integration (RCI)
Drivers of Change: Partnerships (PAR)
Private sector development (PSD)
Gender Equity and Mainstreaming Categories: Category 4: No gender elements (NGE)
Safeguard Categories: Environment: B
Resettlement: C
Indigenous People: C

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

Responsible ADB Officer: Mohammed Azim Hashimi (Request for information)    
Responsible ADB Department: Private Sector Operations Department
Responsible ADB Divisions: Infrastructure Finance Division 1
PDS Creation Date: 08 Mar 2014
Last PDS Update: 13 Nov 2014