Ocean Sparkle’s principal sponsors are four first generation entrepreneurs, Messrs P. Jairaj Kumar, Sanjeev Dhawan, A.K. Sawhney and R.Virender Prasad. Other shareholders include venture capital funds (APIDC Ventures, SUUTI and Swiss Technology Venture Capital Fund Ltd.), and some non-resident Indians. The company is unlisted.

The total project cost is approximately $130 million over FY2009-2010. The proposed IFC investment is a long-term loan of up to $10 million for IFC’s own account and a syndicated loan of up to $60 million. In addition, IFC may make an equity investment of up to $5 million.

9.43 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	9.43

* These investment figures are indicative

Ocean Sparkle is headquartered in Hyderabad, India, and currently provides port management services to various major, minor, and captive ports on both coasts of India. The project will expand its existing activities as well as establish new operations at other locations along the Indian coasts.

OSL is one of the very few private companies providing comprehensive port management services in India. The Indian port sector is still largely government-owned and operated, although there are presently new efforts and plans to privatize both major and minor ports, and to tender port services contracts to outside service companies. The project will support the continued expansion of a well-managed, low-cost provider of port management services. As such, it will provide benefits to port owners and port authorities, who can focus on core activities rather than the allied services that can be more efficiently provided by Ocean Sparkle. The higher standards of port services offered by OSL as a private competitive provider would also help increase the efficiency of ship turnaround operations in privatized ports, as well as improve the environment and safety levels. The company hires Indian mariners and other crew for all of its operations. Hence, the project will also provide employment opportunities to local skilled labor.

- Long-term fixed-rate funding:

Given the nature of the industry, bids for port services management contracts are generally for a long duration involving fixed payments in local currency and minimal escalation for variable costs. IFC will provide the company with long-term, fixed rate rupee funding, which is not readily available in the Indian market. IFC has thus been directly supporting the expansion of a competitive, well-run private sector provider of essential infrastructure services.

- Mobilization/diversification of funding sources:

IFC proposes to syndicate long-term loans for OSL from new banks located overseas. This would represent the first overseas borrowing for the company (apart from IFC), and significantly expand its access to long-term finance

This is a Category B project because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Mitigation measures can be readily designed and any adverse impacts:

- are not likely to be diverse;
- are not likely to be irreversible; and
- most likely will be limited to project site.

The key social, environmental, health and safety impacts associated with the project will include:

- Environmental, Health and Safety Management Systems;
- Labor working conditions, including occupational health and safety;
- Vessel safety and pollution control; and
- Oil/chemical spill containment and recovery.

Ocean Sparkle has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific agreed measures, comply with applicable environmental, health and safety and social requirements, including:

- international maritime standards under MARPOL, SOLAS, and IMO;
- Indian Merchant Shipping Rules and environmental, health and safety laws; and
- the IFC Social and Environmental Performance Standards.

A discussion on the company’s plans to mitigate/minimize identified environmental and social impacts has been provided in the Environmental and Social Review Summary (ESRS) and an Environmental and Social Action Plan (ESAP). The company has publicly disclosed the ESRS and the ESAP in a manner and at locations specified later in this document.