Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date
PDS Updated as of 30 Jan 2015

Project Name Municipal Finance Policy Loan in Himachal Pradesh
Country India
Project/Program Number 45267-001
Status Proposed
Geographical Location
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Public sector management
Subsector Public expenditure and fiscal management
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan-Ordinary capital resources100,000
Counterpart 25,000
TOTAL US$ 125,000

Safeguard Categories

For more information about the safeguard categories, please see

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
The potential stakeholder groups include central policymakers at the Department of Economic Affairs and Ministry of Urban Development, Government of India; Government of Himachal Pradesh (GoHP) officials based in various departments; nongovernmental organizations; academicians in Himachal Pradesh; and users of public services. Participatory public consultations and targeted group discussions will be carried out. Consultations with the stakeholders will be carried out based on the needs of the program through a mix of formal and informal consultations.
During Project Implementation


Project Rationale and Linkage to Country/Regional Strategy

The proposed Municipal Finance Policy Loan in Himachal Pradesh (MFPLH, the Program) will be designed to strengthen municipal financing while improving service delivery by the urban local bodies (ULBs) and strengthening institutional capacity of ULBs consistent with the Jawaharlal Nehru Urban Renewal Mission (JNNURM) and Urban Infrastructure Development Scheme in Small and Medium Towns (UIDSSMT) in Himachal Pradesh. The program will also help the Government of Himachal Pradesh (GoHP) to meet the criterion set under the Incentive Framework for General Performance Grant by the Thirteenth Finance Commission. The program will draw on similar policy-based lending in India. The program will help GoHP to incentivize and promote reforms (including improved service delivery) among interested and competing ULBs, and provide capacity development support. Reforms in the areas of public financial management and improved capacity development will help the participating ULBs to improve revenue effort and attract investment to sustain the service delivery improvements. Building on these best practices in the participating ULBs, and streamlining of devolution to ULBs and making it more effective - to be designed and supported under the MFPLH- will help GoHP to spread improved service delivery initiatives throughout the state.

Development Impact

Sustained access to improved urban public services in the state

Project Outcome

Description of Outcome
Improved fiscal, financial, and institutional capacity of ULBs in the state
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
1. Improved public financial management in ULBs 2. Improved accounting and budget practice 3. The system of devolution from the state to ULBs is streamlined. 4. Service delivery in selected areas of urban utilities in the selected ULBs is improved.
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Status of Operation / Construction
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement and Consulting Notices


Concept Clearance 10 Feb 2012
Management Review Meeting


Approval No. Approval Signing Effectivity Closing
Original Revised Actual


Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan -

Contacts and Update Details

Responsible ADB Officer Hiranya Mukhopadhyay (
Responsible ADB Department South Asia Department
Responsible ADB Divisions Public Management, Financial Sector and Trade Division, SARD
Executing Agencies


Project Website
List of Project Documents