The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ON A PROPOSED IBRD LOAN IN THE AMOUNT OF US$75 MILLION, A PROPOSED CLEAN TECHNOLOGY FUND (CTF) LOAN IN THE AMOUNT OF US$23 MILLION, AND A PROPOSED CTF GRANT Public Disclosure Authorized IN THE AMOUNT OF US$2 MILLION TO THE INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED FOR THE SHARED INFRASTRUCTURE FOR SOLAR PARKS PROJECT Public Disclosure Authorized MARCH 13, 2017 Energy and Extractives Global Practice South Asia Region India Country Management Unit This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective March 9, 2017) Currency Unit = Indian Rupees INR 66.8 = US$1 FISCAL YEAR April 1 – March 31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank FY Fiscal Year CA Chartered Accountant GAP Gender Action Plan CAAA Controller of Aid, Accounts, and Audit GDF Gender Development Framework CAG Comptroller and Auditor General of India GEF Global Environment Facility CAGR Compounded Annual Growth Rate GHG Greenhouse Gas CEA Central Electricity Authority GO Government Order CERC Central Electricity Regulatory Commission GOI Government of India CFA Central Financial Assistance GRC Grievance Redress Committee /Cell CG/CGFA Corporate Governance and Financial Assessment GRM Grievance Redress Mechanism CPS Country Partnership Strategy GRS Grievance Redress Service CQS Consultant’s Qualification Selection GW Gigawatt CRAR Capital to Risk Asset Ratio Ha Hectare International Bank for Reconstruction and CSR Corporate Social Responsibility IBRD Development CTF Clean Technology Fund ICB International Competitive Bidding CTU Central Transmission Utility ICR Implementation Completion and Results Report CUF Capacity Utilization Factor IDA International Development Association CVC Central Vigilance Commission IDU Internal Documents Unit DA Designated Account IFC International Finance Corporation DC Direct Contracting IGRM Integrated Grievance Redress Mechanism DGS&D Directorate General of Supplies and Disposal INR Indian Rupee Discom Distribution Company IPF Investment Project Financing DMRC Delhi Metro Rail Corporation IPP Indigenous Peoples Plan DOP Delegation of Powers IPPF Indigenous Peoples Plan Framework DPE Department of Public Enterprises IPR Independent Procurement Review Indian Renewable Energy Development DPR Detailed Project Report IREDA Agency Limited EAP Externally Aided Project IT Information Technology EMP Environmental Management Plan IUFR Interim Unaudited Financial Report ERR Economic Rate of Return JNNSM Jawaharlal Nehru National Solar Mission ESDE Environmental and Social Development Expert JV Joint Venture Kreditanstalt für Wiederaufbau (German ESIA Environment and Social Impact Assessment KfW Development Bank) ESMF Environment and Social Management Framework kV kilovolt ESO Environmental and Social Officer kWh kilowatt-hour ESPP Environmental & Social Policy and Procedures LCO2 Lifetime Carbon Dioxide Equivalent ESMAP Energy Sector Management Assistance Program LCS Least-Cost Selection FA Framework Agreement LIB Limited International Bidding FBS Fixed Budget Selection LTA Long-Term Access F&C Fraud and Corruption M&AOA Memorandum and Articles of Association FM Financial Management MAC Marginal Abatement Cost FIRR Financial Internal Rate of Return MDB Multilateral Development Bank i MNRE Ministry of New and Renewable Energy PV Photovoltaics M&E Monitoring and Evaluation QBS Quality-Based Selection MOU Memorandum of Understanding QCBS Quality & Cost Based Selection MP Madhya Pradesh RAP Resettlement Action Plan Madhya Pradesh New and Renewable Energy MPNRED RBI Reserve Bank of India Department Madhya Pradesh Power Management Company MPPMCL RE Revised Estimates Limited Madhya Pradesh Power Transmission Company MPPTCL RGO Renewable Generation Obligation Limited MPUVNL Madhya Pradesh Urja Vikas Nigam Limited RPF Resettlement Policy Framework MPR Monthly Progress Report RPO Renewable Purchase Obligation MTon Million Tons R&R Resettlement and Rehabilitation MTR Mid-Term Review RTI Right to Information (Act) MVA mega volt ampere RUMSL Rewa Ultra Mega Solar Limited MW megawatt SC Schedule Caste NAPCC National Action Plan on Climate Change SEBI Securities and Exchange Board of India NBFC Non-Banking Financial Company SECI Solar Energy Corporation of India (Limited) NCB National Competitive Bidding SHG Self Help Group NDC Nationally Determined Contributions SIA Social Impact Assessment NGO Nongovernmental Organization SMF Social Management Framework NOC No Objection Certificate SNA State Nodal Agency NO2 Nitrogen di Oxide SORT Systematic Operations Risk-Rating Tool NREL National Renewable Energy Laboratory SO2 Sulphur di Oxide NPV Net Present Value SSS Single-Source Selection Systematic Tracking of Exchanges in NTPC National Thermal Power Corporation (Limited) STEP Procurement OM Operations Manual STU State Transmission Utility O&M Operation and Maintenance TA Technical Assistance OP Operations Policy ToR Terms of Reference PAD Project Appraisal Document UDAY Ujwal Discom Assurance Yojna PAO Pay and Accounts Officer UNDB United Nations Development Business United States Agency for International PAP Project-Affected Persons USAID Development PDO Project Development Objective US$ United States Dollar PFS Project Financial Statements WB/WBG World Bank/World Bank Group Procurement-Risk Assessment Management P-RAMS WRPC Western Region Power Committee System PSU Public Sector Utility Vice President: Annette Dixon Country Director: Junaid Kamal Ahmad Practice Manager: Demetrios Papathanasiou Senior Global Practice Director: Riccardo Puliti Task Team Leader: Surbhi Goyal Co-Team Leaders: Gevorg Sargsyan, Amit Jain ii INDIA SHARED INFRASTRUCTURE FOR SOLAR PARKS PROJECT TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 1 C. Higher Level Objectives to which the Project Contributes .......................................... 5 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................6 A. Project Development Objective .................................................................................... 6 B. Project Beneficiaries ..................................................................................................... 6 C. PDO Level Results Indicators ....................................................................................... 6 III. PROJECT DESCRIPTION ..............................................................................................6 A. Project Components ...................................................................................................... 7 B. Project Cost and Financing ........................................................................................... 8 C. Lessons Learned and Reflected in the Project Design .................................................. 8 IV. IMPLEMENTATION .......................................................................................................9 A. Institutional and Implementation Arrangements .......................................................... 9 B. Results Monitoring and Evaluation ............................................................................ 10 C. Sustainability............................................................................................................... 10 V. KEY RISKS AND MITIGATION MEASURES ..........................................................11 A. Overall Risk-Rating Explanation ................................................................................ 11 VI. APPRAISAL SUMMARY ..............................................................................................12 A. Economic and Financial Analysis ............................................................................... 12 B. Technical Issues .......................................................................................................... 13 C. Financial Management ................................................................................................ 13 D. Procurement ................................................................................................................ 15 E. Social (including Safeguards) ..................................................................................... 16 F. Environment (including Safeguards) .......................................................................... 17 G. Other Safeguard Policies............................................................................................. 18 iii H. World Bank Grievance Redress .................................................................................. 18 Annex 1. Results Framework and Monitoring ..........................................................................19 Annex 2. Detailed Project Description .......................................................................................22 Annex 3. Implementation Arrangements ..................................................................................31