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Delhi-Meerut Regional Rapid Transit System Investment Project

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Delhi-Meerut Regional Rapid Transit System Investment Project Report and Recommendation of the President to the Board of Directors Project Number: 51073-002 July 2020 Proposed Multitranche Financing Facility India: Delhi–Meerut Regional Rapid Transit System Investment Project Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB's Access to Information Policy after excluding information that is subject to exceptions to disclosure set forth in the policy. CURRENCY EQUIVALENTS (as of 1 July 2020) Currency unit – Indian rupee/s (₹) ₹1.00 = $0.01323 $1.00 = ₹75.5640 ABBREVIATIONS ADB – Asian Development Bank AIIB – Asian Infrastructure Investment Bank CCTV – closed-circuit television COVID-19 – coronavirus disease CPS – country partnership strategy EIA – environmental impact assessment EIRR – economic internal rate of return EMP – environmental management plan FAM – facility administration manual FIRR – financial internal rate of return JFPR – Japan Fund for Poverty Reduction km – kilometer MFF – multitranche financing facility MOHUA – Ministry of Housing and Urban Affairs NCR – National Capital Region NCRTC – National Capital Region Transport Corporation O&M – operation and maintenance PPP – public–private partnership RRTS – regional rapid transit system STI – sexually transmitted infection TA – technical assistance TOD – transit-oriented development VCF – value capture financing NOTE In this report, "$" refers to United States dollars. Vice-President Shixin Chen, Operations 1 Director General Kenichi Yokoyama, South Asia Department (SARD) Director Ravi Peri, Transport and Communications Division (SATC), SARD Team leader Sharad Saxena, Principal Transport Specialist, SATC, SARDa Team members Keerthi Kumar Challa, Associate Project Officer, India Resident Mission (INRM), SARD Liming Chen, Young Professional, Economic Analysis and Operational Support Division, Economic Research and Regional Cooperation Department Mayank Choudhary, Principal Investment Specialist, Infrastructure Finance Division 1, Private Sector Operations Departmenta Marie Kristine Estrella, Associate Project Officer, SATC, SARD Prabhjot Rehan Khan, Senior Social Development Officer (Gender), INRM, SARD Sajid Khan, Financial Management Specialist, Portfolio, Results and Quality Control Unit, Office of the Director General (SAOD-PR), SARD Laureen Laurito, Social Development Specialist, SATC, SARD Cheska Llamas, Senior Operations Assistant, SATC, SARD Joanne Pabis, Associate Operations Analyst, SATC, SARD Neeta Pokhrel, Unit Head, Project Administration, Urban Development and Water Division, SARD Vankina Sri Rekha, Principal Counsel, Office of the General Counsela Satomi Sakaguchi, Transport Specialist, SATC, SARD Srinivas Sampath, Chief of Public–Private Partnership Thematic Group, Office of the Head, Office of Public–Private Partnership Dinesh Shiwakoti; Procurement Specialist; Procurement Division 1; Procurement, Portfolio, and Financial Management Department Francesco Tornieri, Principal Social Development Specialist (Gender and Development), SAOD-PR, SARD Alexandra Vogl, Senior Urban Development Specialist, Urban Development and Water Division, SARDb Karma Yangzom, Senior Environment Specialist, SATC, SARDc Peer reviewer Jen-Pei Yang, Senior Railway Specialist, Transport Sector Group, Sustainable Development and Climate Change Department a Outposted to the India Resident Mission. b Transferred to Strategy, Policy, and Partnerships Department on 3 February 2020. c Transferred to Sustainable Development and Climate Change Department on 1 April 2020. 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. CONTENTS Page INVESTMENT PROJECT AT A GLANCE MAP I. THE PROPOSAL 1 II. RATIONALE 1 III. THE INVESTMENT PROJECT 5 A. Impact and Outcome 5 B. Outputs 6 C. Summary Cost Estimates and Financing Plan 8 D. Implementation Arrangements 10 IV. DUE DILIGENCE 11 A. Technical 11 B. Economic and Financial 12 C. Governance 13 D. Poverty, Social, and Gender 13 E. Safeguards 14 F. Summary of Risk Assessment and Risk Management Plan 15 V. ASSURANCES 16 VI. RECOMMENDATION 16 APPENDIXES 1. Design and Monitoring Framework for the Investment Project 17 2. List of Linked Documents 20 Project Classification Information Status: Complete INVESTMENT PROJECTa AT A GLANCE 1. Basic Data Project Number: 51073-002 Project Name Delhi-Meerut Regional Rapid Department/Division SARD/SATC Transit System Investment Project Country India Executing Agency Ministry of Housing and Borrower India Urban Affairs, National Country Economic https://www.adb.org/Documents/Lin Capital Region Transport Indicators kedDocs/?id=51073-002-CEI Corporation Portfolio at a Glance https://www.adb.org/Documents/Lin kedDocs/?id=51073-002-PortAtaGl ance 2. Sector Subsector(s) ADB Financing ($ million) Transport Transport policies and institutional development 14.50 Urban public transport 1,034.50 Total 1,049.00 3. Operational Priorities Climate Change Information Addressing remaining poverty and reducing inequalities GHG reductions (tons per annum) 258,035 Accelerating progress in gender equality Climate Change impact on the Medium Tackling climate change, building climate and disaster resilience, Project and enhancing environmental sustainability Making cities more livable ADB Financing Strengthening governance and institutional capacity Adaptation ($ million) 3.07 Mitigation ($ million) 1,045.93 Cofinancing Adaptation ($ million) 1.46 Mitigation ($ million) 498.53 Sustainable Development Goals Gender Equity and Mainstreaming SDG 5.1, 5.4 Effective gender mainstreaming (EGM) SDG 9.1 SDG 11.2 Poverty Targeting SDG 13.a General Intervention on Poverty 4. Risk Categorization: Complex . 5. Safeguards Categorization Environment: A Involuntary Resettlement: A Indigenous Peoples: C [Tranche 1] . 6. Financing Modality and Sources Indicative Tranches ($million) Amount I II III IV ($million) ADB 1,049.00 Sovereign MFF-Tranche 500.00 0.00 250.00 299.00 1,049.00 (Regular Loan): Ordinary capital resources Cofinancing 1,003.00 Asian Infrastructure Investment 0.00 500.00 0.00 0.00 500.00 Bank - MFF-Tranche (Loan) (Partial ADB Administration) Japan Fund for Poverty 3.00 0.00 0.00 0.00 3.00 Reduction - Project grant (Full ADB Administration) New Development Bank - 0.00 0.00 500.00 0.00 500.00 MFF-Tranche (Loan) (Not ADB Administered) Counterpart 1,897.70 Government 799.60 799.60 206.00 92.50 1,897.70 Total 1,302.60 1,299.60 956.00 391.50 3,949.70 Currency of ADB Financings: US Dollar Source: Asian Development Bank 13052020181919336545 This document must only be generated in eOps. Generated Date: 23-Jun-2020 16:02:11 PM INVESTMENT PROJECTa AT A GLANCE 7. Country Operations Business Plan CPS https://www.adb.org/sites/default/files/institutional-document/363331 /cps-ind-2018-2022.pdf COBP https://www.adb.org/documents/india-country-operations-business-p lan-2020-2022 8. Investment Program Summary The investment project will finance the first of three prioritized corridors of the planned regional rapid transit system (RRTS) network in India's National Capital Region (NCR). The Delhi-Meerut RRTS will pass through the densely populated sections of the NCR, connecting Delhi to Meerut in the state of Uttar Pradesh. The 82-kilometer corridor will provide safe, reliable, and high-capacity commuter transit services between various locations along the corridor. The investment project will finance rail track, signaling, station buildings, and maintenance facilities. It will also support capacity and institutional development of the National Capital Region Transport Corporation (NCRTC), a joint venture company of the Government of India and states of Delhi, Haryana, Rajasthan and Uttar Pradesh, that is mandated to implement the RRTS project across the NCR. A grant from the Japan Fund for Poverty Reduction will promote improved mobility and economic opportunities for women and differently-abled groups along the corridor. Impact: Urban mobility in the National Capital Region improved Outcome: Efficiency, safety, social inclusiveness, and environmental sustainability of transport in the Delhi-Meerut RRTS corridor improved Outputs: (i) Delhi-Meerut RRTS corridor commissioned, (ii) Institutional capacity of the NCRTC strengthened, and (iii) Mobility and economic opportunities of women and differently abled improved Implementation Arrangements: Ministry of Housing and Urban Affairs and National Capital Region Transport Corporation will be the executing agencies. Project Readiness: Readiness is high as the complete scope to be financed by the MFF has been appraised by ADB. Environmental and social due diligence have been completed for the entire corridor. Geotechnical investigations have been done and detailed design work is in progress. To minimize delays, preconstruction activities such as utility shifting for various sections of the corridor are ongoing. The COVID-19 pandemic has not affected the project implementation arrangements or cost estimate. The project implementation period of 7 years provides adequate cushion for some delays. Based on government orders, guidelines and standard operating procedures have been developed and are being strictly implemented for resumption of regular works at various NCRTC site offices and construction
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