On January 20, 2023, the Asian Development Bank (ADB) signed a loan agreement totaling US$13.1 million with Nhava Sheva Freeport Terminal Private Limited (NSFTPL), a special purpose company established in the Republic of India, through the Asian Infrastructure Partnership Trust Fund (LEAP) (Note 1) funded by JICA. (NSFTPL), a special purpose company established in the Republic of India, for a total of US$131 million. Of this amount, US$69.6 million will be provided through LEAP.
Since 2020, the impact of COVID-19 has spread globally, causing disruptions in the supply chain due to the sudden change in the balance of supply and demand. Even now, as the corona is being settled, logistics volumes are on an upward trend due to changes in people’s consumption behavior. For the recovery and further development of the economy, it is essential to build a strong supply chain. In particular, Indian container ports, which serve as the base of the logistics network linking Asia with Europe and other regions, face the challenge of strengthening their competitiveness and improving the efficiency of terminal operations.
This project is a PPP scheme (Note 2) based on a 30-year contract awarded to NSFTPL for the rehabilitation, operation, and maintenance of Jawaharlal Nehru Port Container Terminal (JNPCT), located in Navi Mumbai, part of the Mumbai metropolitan area in India. This will contribute to reducing logistics costs by alleviating port congestion and reducing greenhouse gas emissions through the electrification of facilities. This project will contribute to SDG Goals 8 (both job satisfaction and economic growth) and 9 (create a foundation for industrial and technological innovation).
Through yen loans and technical cooperation, JICA has been supporting the construction of the West Corridor of the freight-only railroad connecting the 1,500 km of the JNPCT located in the National Capital Region of Delhi and the Mumbai metropolitan area. The expansion of the JNPCT, which will be connected to the freight rail line, will further improve the efficiency of the logistics network and meet the increasing demand for freight transport. This is expected to contribute to the broad economic development of the Delhi-Mumbai industrial artery region.
JICA will continue to work with other countries and international organizations to promote “high-quality infrastructure investment” and contribute to the economic and social development of developing countries and regions.
(Note 1) LEAP (Leading Asia’s Private Infrastructure Fund) is a trust fund mentioned in the follow-up measures to the “High Quality Infrastructure Partnership” announced by the Japanese government on November 21, 2015. JICA has agreed to invest US$1.5 billion in LEAP in March 2016. LEAP supports a wide range of high-quality, sustainable private sector infrastructure projects in ADB member countries in the Asia-Pacific region, including greenhouse gas reduction, energy conservation, and affordable health services.
(Note 2) PPP is an abbreviation for Public Private Partnership, which aims to make highly public projects more efficient and effective through collaboration between the public and private sectors in infrastructure projects.
© Source JICA
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