Asian Development Bank extends $300 million loan for road upgradation

Asian Development Bank has approved a $300-million loan to Madhya Pradesh for a three-year road improvement project, which will involve upgradation of 1,000km of the state’s roadways

The Asian Development Bank (ADB) has approved a $300-million loan to Madhya Pradesh for a three-year road improvement project, which will involve upgradation of 1,000km of the state's roadways.

"ADB is extending a $300 million loan for road improvements...The ADB Board of Directors today approved the loan for the Madhya Pradesh State Roads Project-III, which will upgrade over 1,000 km of highway in poor eastern and west central areas of the state," the bank said in a statement.

It said the project falls under the state government's ongoing state road rehabilitation programme, a project in which ADB had previously assisted. The state government is the executing agency for the project which will run for three years, and is due to be completed in December, 2013.

The loan will have a 25-year term with a five-year grace period and the Madhya Pradesh government will provide counterpart funds of $75 million.

"About 38% of Madhya Pradesh's 77 million people live below the official poverty line and upgrading state highways which link to major national routes will sharply improve connectivity to markets and social services, increasing livelihood opportunities and incomes for the poor, particularly women," ADB South Asia Department Transport Specialist Lee Ming Tai said.

The multi-national agency said secondary highways in Madhya Pradesh are in poor condition, resulting in congestion, high costs and increased accidents. "About 7,400km of the more than 10,000km of state highways have been improved, and the new work will help complete the state road rehabilitation programme," it said.

The project will expand existing highways into two-lane routes, besides constructing and strengthening bridges, culverts, and cross-drainage structures, using environmental-friendly and climate-proof designs. The work will also be taken up to provide green cover near the roads.

"The Madhya Pradesh Road Development Corporation, set up with earlier ADB assistance, will get further support for road safety initiatives including an accident emergency response system," it said.

User

Exim Bank to raise Rs1,095 crore from Japan bond market

Japan Bank for International Cooperation will provide guarantee to the proposed Rs1,095 crore bond issuance from Exim Bank in the Japanese market

Japan Bank for International Cooperation (JBIC) said it will provide guarantee to the proposed 20 billion yen (Rs1,095 crore) bond issuance from Exim Bank in the Japanese market.

JBIC will provide guarantee for bonds equivalent to 20 billion yen, issued by Exim Bank in Japan's bond market and these funds will be utilised in India, the Japanese bank said in a statement.

Exim Bank is a state-owned financial institution which provides credit facility for import and exports. The guarantee will cover the principal and part of the interest of privately placed Samurai bonds by Exim Bank, it said.

Samurai bonds are yen-denominated and issued by a foreign government or company in the Tokyo bond market. The guarantee was extended under JBIC's Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility.

As part of efforts to fulfil its mission of maintaining and improving the international competitiveness of Japanese industries, JBIC supports Samurai bond issues by foreign entities in the Tokyo bond market by providing credit enhancement, it said.

This is the first guarantee for Samurai bonds issued by a government agency under the GATE facility as well as the first guarantee for Samurai bonds provided for an Indian issuer.

User

ACIL may be made new operator for Assam oil field

Oil regulator Directorate General of Hydrocarbons had last year found ACIL competent to takeover operatorship of the field from Canoro who held 60% stake in the field

With Delhi High Court upholding termination of Canadian firm Canoro Resources' contract for Amguri oilfield, the petroleum ministry may appoint Assam Co India Ltd (ACIL) as the operator of the oilfield in Assam.

A single judge Bench of the Delhi High Court on 7th March upheld termination of Canoro's production sharing contract (PSC) for the discovered Amguri field in Assam. Officials privy to the development said ACIL, which holds 40% interest in the Amguri fields, is likely to be appointed the operator.
Oil regulator Directorate General of Hydrocarbons (DGH) had last year found ACIL competent to takeover operatorship of the field from Canoro who held 60% stake in the field.

"The government of India may consider the request for appointment of ACIL as an operator for Amguri field replacing Canoro Resources and allocation/transfer of 60% interest (of Canadian firm) to ACIL," DGH had written to the oil ministry on 28 July 2010.

The termination followed Canoro not taking government consent for selling controlling stake to Mass Financial Corp.

Canoro had raised Canadian $95 million, or Rs430 crore, last April 2009 through a mix of debt and equity from Barbados-based Mass Financial Corp without the required consent of the government.

Delhi High Court's Justice Vipin Sanghi in the 7th March order stated: "I am of the prima facie view that the State, as a sovereign, cannot be understood to have irretrievably given up all its rights while entering into a contract, such that it is rendered helpless in a situation which threatens the national interest or security of State."

"An interpretation, either of a law or a contract, which impinges on the sovereign power of the State to safeguard its vital and strategic interests (and not just commercial interests), would be eschewed by the Court to save the law, or the contract, from validity on the ground of it being opposed to public policy," the court said.

The centre had issued a termination notice to Canoro on 1 June 2010 citing "national interests and government's sovereign power on the national resources" as a reason.

In the termination order 28th August last year, the ministry said Canoro had violated Article 29.2 of the PSC by not seeking the government's consent before making a "material change" in the shareholding of the company. Canoro had challenged the termination.

After the High Court order, Canoro said: "The issue of whether the company is in breach of the Amguri PSC remains subject to the determination of an arbitration panel. The company is reviewing all its options in connection with the said decision, including, without limitation, an appeal to a higher court."

On Thursday, ACIL ended 0.28% up at Rs17.60 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.77% to 18,327.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)