JICA Signs loan agreements for DFCC Project Phase 2 and other projects

On March 31, the Japan International Cooperation Agency (JICA) signed loan agreements with the Government of India in Delhi, to provide Japanese ODA loans of up to a total of 312.258 billion yen for the following seven projects.

  • Dedicated Freight Corridor Project (Phase 2) (III) (loan amount: 116.52 billion yen)
  • Chennai Metro Project (Phase 2) (II) (loan amount: 73 billion yen)
  • Bengaluru Water Supply and Sewerage Project (Phase 3) (II) (loan amount: 37.068 billion yen)
  • North East Road Network Connectivity Improvement Project (Phase 6) (loan amount: 23.129 billion yen)
  • Uttarakhand Integrated Horticulture Development Project (loan amount: 6.401 billion yen)
  • Tamil Nadu Biodiversity Conservation and Greening Project for Climate Change Response (loan amount: 10.535 billion yen)
  • Assam Health System Strengthening Project (loan amount: 45.605 billion yen)

Details for the projects are provided below:

  • Dedicated Freight Corridor Project (Phase 2) (III
    • Objective and Summary: The objective of the project is to cope with the increase in demand for freight transport in India by constructing a new dedicated freight railway system, thereby promoting comprehensive regional economic development along the freight corridor. This will be achieved through improvement and modernization of the inter-modal logistic system handling considerable freight traffic and poised for massive growth. The project will contribute to the achievement of SDGs Goals 8, 9, 11, and 13.
    • Planned Implementation Schedule:
      • Completion of project: May 2025 – when the facilities are put into service.
      • Issuing of letters of invitation for consulting services (including construction supervision): Already hired
      • Tender announcement of initial procurement package for international competitive bidding on project construction: Already contracted
  • Chennai Metro Project(Phase 2)(II)
    • Objective and Summary: The objective of the project is to cope with the increase of traffic demand in the Chennai Metropolitan Area by expanding the mass rapid transit system. This will promote regional economic development and improve the urban environment, through relief of traffic congestion and decrease of pollution caused by an increase in motor vehicles. The project will contribute to the achievement of SDGs Goals 8, 9, 11, and 13.
    • Japanese technology will be utilized in equipment provided for the project, such as tunnel boring machines, elevators, escalators, rails, signaling systems, automated fare collection systems, platform screen doors (half-height), and rolling stock.
    • Planned Implementation Schedule:
      • Completion of project: June 2027 – when the facilities are put into service.
      • Issuing of letters of invitation for consulting services (including detailed design work): Already hired
      • Tender announcement of initial procurement package for international competitive bidding on project construction: Already contracted
      • JICA Contact Information: For further information about the procurement schedule, please contact the party listed below. JICA India Office Address: 16th Floor, Hindustan Times Building, KG Marg New Delhi 110-001, India Phone: +91-11-4909-7000, fax: +91-11-4909-7001/7002/7003/7004
  • Bengaluru Water Supply and Sewerage Project (Phase 3) (II)
    • Objective and Summary: The objective of the project is to provide safe and stable water supply and sewerage services by carrying out construction of water supply facilities and sewage facilities. This will improve the living conditions of the residents and promote the industrial activities in the Bengaluru metropolitan area, in the State of Karnataka. The project will contribute to the achievement of SDGs Goal 6.
    • Planned Implementation Schedule: 
      • Completion of project: December 2025 – when the all facilities are put into service.
      • Issuing of letters of invitation for consulting services (including detailed design work): Already hired
      • Tender announcement of initial procurement package for international competitive bidding on project construction: Already contracted
  • North East Road Network Connectivity Improvement Project (Phase 6)
    • Objective and Summary: The objective of the project is to improve connectivity in the North Eastern Region of India as well as connectivity with other parts of India and Bangladesh through establishing and improving National Highway 208 (Khowai-Sabroom section) in Tripura state, thereby promoting regional socio-economic development. The project will contribute to the achievement of SDGs Goals 3, 8, 9, and 13.
    • Planned Implementation Schedule:
      • Completion of project: March 2026 – when the facilities are put into service.
      • Issuing of letters of invitation for consulting services (including construction supervision): July 2022
      • Tender announcement of initial procurement package for international competitive bidding on project construction: No international competitive bidding is planned under the project.
  • Uttarakhand Integrated Horticulture Development Project
    • Objective and Summary: The objective of the project is to promote profitable horticulture and improve farmers’ income by infrastructure development and capacity development for production, processing, and marketing of horticulture crops. This will contribute to economic and social development in Uttarakhand state. The project will contribute to the achievement of SDGs Goals 1, 2, 8, and 13.
    • Planned Implementation Schedule:
      • Completion of project: December 2028 – when all the activities are completed
      • Issuing of letters of invitation for consulting services (including detailed design work): April 2022
      • Tender announcement of initial procurement package for international competitive bidding on project construction: No international competitive bidding is planned under the project.
  • Tamil Nadu Biodiversity Conservation and Greening Project for Climate Change Response
    • Objective and Summary: The objective of the project is to mitigate and adapt to climate change and improve the ecosystem by undertaking biodiversity conservation, human versus wildlife conflict mitigation measures, promoting supply chain development, livelihood improvement activities, and management capacity development, thereby contributing to sustainable socio-economic development in Tamil Nadu. The project will contribute to the achievement of SDGs Goals 1, 13, 14, and 15.
    • Planned Implementation Schedule: 
      • Completion of project: July 2030 – when all the activities are completed
      • Issuing of letters of invitation for consulting services (including project supervision): April 2022
      • Tender announcement of initial procurement package for international competitive bidding on project construction: No international competitive bidding is planned under the project.
  • Assam Health System Strengthening Project:
    • Objective and Summary: The objective of the project is to improve the quality of medical services for the residents of the target areas in the state of Assam. This will be done by comprehensively promoting the development of public medical institutions, mainly secondary and tertiary medical facilities that will serve as core medical centers. There will also be capacity development of medical personnel, and improvement of the management of medical services. These measures will contribute to achieving UHC in the state. The project will contribute to the achievement of SDGs Goal 3.
    • Planned Implementation Schedule: 
      • Completion of project: April 2027 – when the medical facilities are put into service.
      • Issuing of letters of invitation for consulting services (including project supervision): April 2022
      • Tender announcement of initial procurement package for international competitive bidding on project construction: March 2023.
Project titleAmount (million yen)Annual interest rate (%)Repayment period (years)Grace period (years)Procurement
ProjectConsulting Services
Dedicated Freight Corridor Project (Phase 2) (III)116,5200.10.014010Tied
Chennai Metro Project(Phase 2)(II)73,0000.20.014012Tied
Bengaluru Water Supply and Sewerage Project (Phase 3) (II)37,0681.2(except for Sewerage system) / 1.0(for Sewerage system)0.013010General untied
North East Road Network Connectivity Improvement Project (Phase 6)23,1291.20.013010General untied
Uttarakhand Integrated Horticulture Development Project6,4011.20.013010General untied
Tamil Nadu Biodiversity Conservation and Greening Project for Climate Change Response10,5351.00.013010General untied
Assam Health System Strengthening Project45,6051.00.013010General untied

Source: JICA