Exchange of Notes concerning Yen Loans of 2 Projects to India
2023/3/3
On February 27, Mr. SUZUKI Hiroshi, Ambassador of Japan to India, and Mr. Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, exchanged notes in New Delhi, concerning the provision of yen loans related to two projects (total loan provision of up to 40.673 billion yen).
1. Overview of the Yen Loan Projects
(1) Mumbai Trans-Harbour Link Project (III) (loan provision of up to 30.755 billion yen)
This project is to provide a loan for the construction of the maritime bridge road in the Mumbai metropolitan area of Maharashtra to connect central Mumbai on the peninsula side to the Navi Mumbai area on the other side of the Gulf of Mumbai. As a result, by 2025 (two years after completion of the project), the number of passengers on the targeted route will be approximately 46 million per year, and the travel time will be reduced from 61 minutes via the nearest detour route to 16 minutes. It is expected that this loan would contribute to the promotion of economic growth by improving connectivity to places such as Navi Mumbai, where urban development is under planning.
(2) Project for the Establishment of Mizoram State Super-Specialty Cancer and Research Centre (loan provision of up to 9.918 billion yen)
This project is to provide a loan for the construction of state super-specialty cancer and research centre in Aizawl, the capital city of Mizoram in the North East of India. It will serve as a center of excellence for cancer prevention, screening, treatment, research and human resource development. As a result, by 2030 (two years after completion of the project), the number of radiotherapy provided will increase from approximately 12,000 (in 2019) to 17,000, additional 1,000 surgical operations will be performed annually, and cancer control-related training courses will be introduced for 50 people annually. It is expected that this loan would contribute to the promotion of universal health coverage through the strengthening of the health care system for cancer in Mizoram.
2. Terms and Conditions of the Loans
(1) For project (1) in 1 above
i. Interest rate: Tokyo Term Risk Free Rate plus 90bp (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
(2) For project (2) in 1 above
i. Interest rate: 1.50% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
1. Overview of the Yen Loan Projects
(1) Mumbai Trans-Harbour Link Project (III) (loan provision of up to 30.755 billion yen)
This project is to provide a loan for the construction of the maritime bridge road in the Mumbai metropolitan area of Maharashtra to connect central Mumbai on the peninsula side to the Navi Mumbai area on the other side of the Gulf of Mumbai. As a result, by 2025 (two years after completion of the project), the number of passengers on the targeted route will be approximately 46 million per year, and the travel time will be reduced from 61 minutes via the nearest detour route to 16 minutes. It is expected that this loan would contribute to the promotion of economic growth by improving connectivity to places such as Navi Mumbai, where urban development is under planning.
(2) Project for the Establishment of Mizoram State Super-Specialty Cancer and Research Centre (loan provision of up to 9.918 billion yen)
This project is to provide a loan for the construction of state super-specialty cancer and research centre in Aizawl, the capital city of Mizoram in the North East of India. It will serve as a center of excellence for cancer prevention, screening, treatment, research and human resource development. As a result, by 2030 (two years after completion of the project), the number of radiotherapy provided will increase from approximately 12,000 (in 2019) to 17,000, additional 1,000 surgical operations will be performed annually, and cancer control-related training courses will be introduced for 50 people annually. It is expected that this loan would contribute to the promotion of universal health coverage through the strengthening of the health care system for cancer in Mizoram.
2. Terms and Conditions of the Loans
(1) For project (1) in 1 above
i. Interest rate: Tokyo Term Risk Free Rate plus 90bp (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
(2) For project (2) in 1 above
i. Interest rate: 1.50% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied