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Signing of Yen Loan Agreement for India: Contributing to Deepening bilateral ties and mutual benefits between Japan and India through cooperation for India’s SDGs achievement | News & Media

Posted on 2024-02-212024-03-06 by Editor in Chief

The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Government of the Republic of India on February 20, 2012, for nine projects totaling up to 232,209 million yen. The nine projects covered by the Loan Agreement are as follows. Signing ceremony

(1) Project to Promote Entrepreneurship and Innovation in Telangana (Loan amount: 23,697 million yen)

(2) Chennai Ring Road Construction Project (Phase 2) (Loan amount: 49,847 million yen)

(3) Northeast Province Road Network Connectivity Improvement Project (Phase 7) (Loan amount: 15,561 million yen)

(4) Northeast Province Road Network Connectivity Improvement Project (Phase 3) (Phase II) (Loan amount: 34,537 million yen)

(5) Urban water supply and sewerage improvement project in Uttarakhand (Loan amount: 16,211 million yen)

(6) Project for Promotion of Sustainable Horticulture in Haryana (Phase I) (Loan amount: 16,215 million yen)

(7) Project for combating climate change and improving ecosystem benefits in Rajasthan (Loan amount: 26,133 million yen)

(8) Project to establish a medical college hospital attached to Kohima Medical Research Institute, Nagaland (Loan amount: 10,008 million yen)

(9) Freight rail construction project (Phase 1) (Phase 5) (Loan amount: 40 billion yen)

Details of each business are as follows

(1) Project for Promoting Start-up and Innovation in Telangana

(a) Purpose and outline of business

This project aims to promote the discovery of entrepreneurs, including women and rural residents, and the expansion of their businesses by providing capacity building for entrepreneurs and small and micro enterprises, infrastructure development, commercialization support, and business and market creation, and by strengthening the capacity of implementing agencies in the state of Telangana in southern India, thereby contributing to the creation of inclusive employment opportunities and sustainable industrial development in the state. This will contribute to the creation of inclusive employment opportunities and sustainable industrial development in the state. This project is expected to contribute to Goals 8 and 9 of the SDGs.

(b) Project implementing agency

Information Technology, Electronics and Communications Department, Government of Telangana

URL of implementing agency: https://telangana.gov.in/departments/information-technology-electronics-and-communications/

(c) Schedule for future project implementation (tentative)

  1. estimated completion date of the project: September 2029 (project completion upon completion of all activities)
  2. expected date of sending invitation for consulting services (construction supervision, etc.): June 2024

  3. public announcement of bids for the first procurement package through international competitive bidding for the main body work: Procurement for the main body work required for this project will be carried out through domestic bidding, and procurement through international competitive bidding is not planned.

(2) Project for the Construction of Chennai Peripheral Ring Road (Phase 2)

(a) Purpose and outline of business

This project aims to meet the rapidly increasing road traffic demand, alleviate traffic congestion, and strengthen connections to the southern part of the state by constructing a new section 5, which will be a section of the peripheral ring road, and introducing an Intelligent Transport System (ITS) in sections 2 to 5 in the Chennai metropolitan area in the state of Tamil Nadu in southern India, and thereby contributing to the economic development of the metropolitan area. This project will contribute to the economic development of the metropolitan area. This project is expected to contribute to Goal 3, Goal 8, and Goal 9 of the SDGs.

(b) Project implementing agency

Highways and Minor Ports Department, Government of Tamil Nadu

URL of implementing agency: https://www.tn.gov.in/department/13

(c) Schedule for future project implementation (tentative)

  1. scheduled completion of the project: June 2030 (project completion at the time all facilities are put into service)
  2. expected date of sending invitation for consulting services (construction supervision, etc.): July 2024

  3. public announcement of bids for the first procurement package through international competitive bidding for the main body of work: June 2026

(3) North East Road Network Connectivity Improvement Project (Phase 7)

(a) Purpose and outline of business

This project will improve connectivity within the region and with other regions in and outside of India by constructing National Highway 127B connecting Phulbari to Goelagre in the state of Meghalaya in northeastern India, thereby contributing to the promotion of economic development in the region. This project is expected to contribute to Goal 3, Goal 8, Goal 9, and Goal 13 of the SDGs.

(b) Project Implementing Agency

Meghalaya Public Works Department

URL of implementing agency: https://megpwd.gov.in/

(c) Schedule for future project implementation (tentative)

(1) Scheduled completion of the project: October 2026 (the project will be completed when the facility is put into service)

  1. expected date of sending invitation for consulting services (construction supervision, etc.): February 2024
  2. public announcement of bidding for the first procurement package through international competitive bidding for the main body of work: Procurement necessary for the project will be carried out through domestic bidding, and procurement through international competitive bidding is not planned.

(4) North East Road Network Connectivity Improvement Project (Phase 3) (II)

(a) Purpose and Outline of Business

This project is located in northeastern India, between Dhubri in Assam and Phulbari in Meghalaya, and will connect the two banks of National Highway 127B, which is divided by the river, by constructing a bridge with a total length of 20 km over the Brahmaputra River, thereby improving connectivity within and beyond the region, and thereby contributing to the promotion of economic development within and beyond the region. This project will contribute to the promotion of economic development in and outside of the region. This project is expected to contribute to Goals 8 and 9 of the SDGs.

(b) Project Implementing Agency

National Highways and Infrastructure Development Corporation Limited

URL of implementing agency: https://nhidcl.com/

(c) Schedule for future project implementation (tentative)

(1) Scheduled completion of the project: September 2028 (the project will be completed when the facility is put into service)

  1. expected date of sending invitation for consulting services (construction supervision, etc.): hired
  2. public announcement of bids for the first procurement package through international competitive bidding for the main body of work: contracted

(5) Project for the Improvement of Urban Water Supply System in Uttarakhand

(a) Purpose and Outline of Business

This project aims to provide stable water supply services to areas in the northern Indian state of Uttarakhand that do not have access to sufficient drinking water, including mountainous and remote areas, and thereby contribute to improving the living environment of the local people and their adaptation to climate change. This project is expected to contribute to Goal 3, Goal 6, and Goal 13 of the SDGs.

(b) Project Implementing Agency

Department of Drinking Water and Sanitation, Government of Uttarakhand

URL of implementing agency: https://swsm.uk.gov.in/

Uttarakhand State Water Supply Corporation (English name: Uttarakhand Peyjal Sansadhan Vikas Evam Nirman Nigam)

URL of implementing agency: https://peyjal.uk.gov.in/

(c) Schedule for future project implementation (tentative)

(1) Project completion date: April 2031 (project completion at the time of commencement of service of facilities in all eligible small-scale projects)

  1. expected date of sending invitation for consulting services (construction supervision, etc.): March 2024
  2. public announcement of bids for the first procurement package through international competitive bidding for the main body of work: February 2026

(6) Project for Promoting Sustainable Horticulture in Haryana (Phase I)

(a) Purpose and Outline of Business

This project aims to contribute to the socio-economic development of the state of Haryana in northern India by supporting the diversification of horticultural crops such as fruit trees and vegetables, and improving the income of the target farmers through the promotion of sustainable agriculture and sales of horticultural products by upgrading facilities and capacity building for value chain promotion. This project is expected to contribute to Goal 1, Goal 2, Goal 8, and Goal 13 of the SDGs.

(b) Project Implementing Agency

Department of Horticulture, Government of Haryana

URL of implementing agency: https://hortharyana.gov.in/en

(c) Schedule for future project implementation (tentative)

  1. estimated completion date of the project: January 2033 (project completion upon completion of all activities)
  2. expected date of sending invitation for consulting services (construction supervision, etc.): June 2024

  3. public announcement of bidding for the first procurement package through international competitive bidding for the main body of work: Procurement necessary for the project will be carried out through domestic bidding, and procurement through international competitive bidding is not planned.

(7) Project for Climate Change Response and Ecosystem Services Enhancement in Rajasthan

(a) Purpose and Outline of Business

This project aims to promote climate change countermeasures (adaptation and mitigation measures) and improve ecosystem services in the state of Rajasthan, northern India, through forest conservation, biodiversity conservation and restoration activities, livelihood enhancement activities necessary for such activities, and strengthening of the organizational structure of the state forest department, thereby contributing to sustainable socio-economic development in the state. This project will contribute to the sustainable social and economic development of the state. This project is expected to contribute to Goal 1, Goal 5, Goal 13, and Goal 15 of the SDGs.

(b) Project Implementing Agency

Rajasthan Forest Department, Government of Rajasthan)

URL of implementing agency: https://forest.rajasthan.gov.in/content/raj/forest/en/home.html#

(c) Schedule for future project implementation (tentative)

  1. estimated completion date of the project: March 2034 (project completion upon completion of all activities)
  2. expected date of sending invitation for consulting services (construction supervision, etc.): March 2024

  3. public announcement of bidding for the first procurement package through international competitive bidding for the main body of work: Procurement necessary for the project will be carried out through domestic bidding, and procurement through international competitive bidding is not planned.

(8) Project for the Establishment of the Medical College Hospital at Nagaland Institute of Medical Sciences and Research, Kohima Research, Kohima)

(a) Purpose and Outline of Business

This project aims to establish a tertiary healthcare service delivery system in the state of Kohima in Nagaland, northeastern India, by building a medical college hospital and strengthening the medical human resource development system through clinical education, thereby contributing to the promotion of UHC (Note 1) in the region. It is expected that this project will contribute to Goal 3 of the SDGs.

(Note 1) Abbreviation for Universal Health Coverage. It means that all people have access to appropriate health promotion, prevention, treatment, and functional recovery services at a cost they can afford.

(b) Project Implementing Agency

Department of Health and Family Welfare, Government of Nagaland

URL of implementing agency: https://nagahealth.nagaland.gov.in/

(c) Schedule for future project implementation (tentative)

(1) Project completion date: October 2030 (project completion upon commencement of provision of the Medical University Hospital)

  1. expected date of sending invitation for consulting services (construction supervision, etc.): February 2024
  2. public announcement of bids for the first procurement package through international competitive bidding for the main body of work: June 2025

(9) Dedicated Freight Corridor Project (Phase 1) (V)

(a) Purpose and Outline of Business

This project will construct a new line connecting major cities in the states of Gujarat, Rajasthan, and Haryana, which are considered to have particularly high priority in the planned freight-only railroad sections between Delhi and Mumbai and between Ludhiana and Delhi and Sonnagar, and introduce fully automatic signaling and communication systems and high-power, high-speed locomotives. By constructing a new line connecting major cities in the states of Gujarat, Rajasthan, and Haryana, and by introducing fully automated signaling and communication systems and high-powered, high-speed locomotives, the project aims to meet the demand for freight transport, which is expected to grow at a high rate, and to improve the efficiency of the logistics network. This project is expected to contribute to Goal 8, Goal 9, Goal 11, and Goal 13 of the SDGs.

The Japanese technology utilization condition (STEP) (Note 2) will be applied to the yen loan for this project, and Japanese technology will be utilized for the components of the track, signaling and communications, etc. to be developed in this project.

(b) Project Implementing Agency

Ministry of Railways, India (English name: Ministry of Railways)

URL of implementing agency: https://indianrailways.gov.in/

Dedicated Freight Corridor Corporation of India Limited (DFCCIL)

URL of implementing agency: https://dfccil.com/

(c) Schedule for future project implementation (tentative)

  1. scheduled completion date of the project: November 2027 (the project will be completed when all facilities are put into service)
  2. expected date of sending invitation for consulting services (construction supervision, etc.): hired

  3. public announcement of bids for the first procurement package through international competitive bidding for the main body of work: contracted

  4. JICA information desk

For information on the procurement schedule for this project, please contact the following office.

Japan International Cooperation Agency, India Office, Transport Sector Information Desk

(Contact Point for Transport Sector, JICA India Office,)

Address: 16th Floor, Hindustan Times House, 18-20, Kasturba Gandhi Marg, New Delhi – 110-001, INDIA

TEL: (91-11) 4909-7000, FAX: (91-11) 4909-7001 to 7004

Loan Amount and Terms

Project name Loan amount

(Millions of yen) Interest rate (%/year) Redemption period

(years) Settlement period

(year) Terms of procurement Body Consulting services Project to promote entrepreneurship and innovation in Telangana 23,697 1.80 0.20 30 10

General Antide Ring Road Construction Project around Chennai (Phase 2) 498,47 1.80 0.20 30 10 General Antide Northeast State Road Network Connectivity Improvement Project (Phase 7) 15,561 1.80 0.20 30 10 General Antide Northeast State Road Network Connectivity Improvement Project (Phase 3) (Phase II) 34,537 1.80 0.20 30 10 General Antidevelopment Project for Urban Water Supply in Uttarakhand 16,211 1.80 0.20 30 10 General Antidevelopment Project for Promotion of Sustainable Horticulture in Haryana (Phase I) 16,215 1.45 0.20 20 6 General Antidevelopment Project for Climate Change Control and Ecosystem Benefits in Rajasthan 26,133 1.60 0.20 30 10 General Antidevelopment Project for Establishment of Medical College Hospital attached to Kohima Medical Research Institute, Nagaland 10,008 1.60 0.20 30 10 General Antidevelopment Project for Construction of Freight Railways (Phase I) (Phase V) 40,000 0.30 0.20 40 10 30 0.20 40 10 STEP

(Note 2) Abbreviation for Special Terms for Economic Partnership. Terms and conditions for the provision of yen loans established to promote Japan’s “face-to-face assistance” through the transfer of technology to developing countries utilizing Japan’s superior technology and know-how. The main contractor is Japan Tide and the subcontractor is General Untied. The main contractor must be either a Japanese company, a subsidiary of a Japanese company located overseas, or a joint venture (JV; the Japanese company is the lead partner) between a Japanese company and the borrowing country. Under certain conditions, a JV between a Japanese company and an equity-method affiliate of the Japanese company (with the Japanese company as the lead partner) may also be the lead contractor.

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© Source JICA

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