ADB To Issue Loan of USD 131M To Upgrade Jawaharlal Nehru Port
By: Asia Business Outlook Team
The Asian Development Bank (ADB) and Nhava Sheva Freeport Terminal Private Limited (NSFTPL) have signed a USD 131 million (approximately Rs 1,066 crore) loan agreement to upgrade the Jawaharlal Nehru Port Container Terminal in Navi Mumbai, with the goal of increasing international trade in India through efficient, transparent, and cutting-edge logistics infrastructure.
J M Baxi Ports and Logistics Limited (JMBPL) and CMA Terminals own NSFTPL as a special purpose vehicle.
The financing package includes USD 61.4 million from ADB's ordinary capital resources and USD 69.6 million from ADB's Leading Asia's Private Infrastructure Fund (LEAP), according to a statement from the Manila-based multilateral lending agency.
The funds will be used to upgrade existing berths and yards and install additional energy efficient equipment such as electric quay cranes," it said.
ADB further said these upgrades will expand the terminal's container handling capacity and attract vessels operating on important international shipping lanes.
"Global trade and supply chains are vulnerable to shocks, and enhancing countries’ capacity for trade is critical to the region's recovery from COVID-19 and its ongoing prosperity," ADB Vice-President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa said.
Lavasa went on to say that long-term ADB financial support can boost India's economic competitiveness by developing world-class megaports and improving the efficiency of containerized cargo terminal operations.