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PUBLIC BRIEF REPUBLIC OF INDIA Project to extend Bangalore’s two existing metro lines CONTENTS I - THE SECTOR AND ITS CHALLENGES .......................................................................................................... 2 1.1 - SECTOR PRESENTATION ................................................................................................................................. 2 1.1.1 - The urban transport sector is growing fast ........................................................................................... 2 1.1.2 - Bangalore, a dynamic city but also one of the most congested in the country ...................................... 2 1.1.3 - Significant public transport growth: phase I of the Bangalore metro ................................................... 2 1.2 - GOVERNMENT POLICY: UPGRADING URBAN INFRASTRUCTURE ..................................................................... 2 1.3 - IMPORTANCE FOR THE COUNTRY ................................................................................................................... 3 1.4 - CONTRIBUTION TO THE STRATEGIC GOALS OF FRENCH AID AND AFD .......................................................... 3 1.4.1 - Lessons learned from the main activities of AFD and other French aid actors in the sector ............... 3 1.4.2 - Contribution to the strategic goals of French aid and AFD .................................................................. 3 II - THE PROJECT .................................................................................................................................................... 3 2.1 - OBJECTIVE .................................................................................................................................................... 3 2.2 - SPECIFIC OBJECTIVES .................................................................................................................................... 3 2.3 - PROJECT CONTENT ........................................................................................................................................ 4 2.4 - KEY ACTORS AND OPERATING METHODS ....................................................................................................... 4 2.4.1 - Funding arrangements .......................................................................................................................... 4 2.4.2 - Technical arrangements ........................................................................................................................ 5 2.4.3 - Timetable ............................................................................................................................................... 5 2.5 - COST AND FINANCING PLAN .......................................................................................................................... 5 2.6 - NATURE OF THE FINANCIAL PRODUCT PROPOSED BY AFD ............................................................................ 5 III - PROJECT IMPACT EVALUATION ............................................................................................................... 5 3.1 - CONTRIBUTION DU PROJET AUX ENJEUX DU DEVELOPPEMENT DURABLE ...................................................... 5 3.2 - EXPECTED PROJECT IMPACT .......................................................................................................................... 5 3.2.1 - Economic effects .................................................................................................................................... 5 3.2.2 - Environmental impact and climate strategy .......................................................................................... 6 3.2.3 - Social impact ......................................................................................................................................... 6 3.2.4 - Institutional impact ................................................................................................................................ 6 IV - MONITORING, FOLLOW UP AND INDICATORS ..................................................................................... 6 4.1 - MONITORING MECHANISM ............................................................................................................................ 6 4.2 - IMPACT INDICATORS FOR THE LINE EXTENSIONS ........................................................................................... 7 Cop-M2021 NCO Version Finale 1/7 I - THE SECTOR AND ITS CHALLENGES 1.1 - Sector presentation 1.1.1 - The urban transport sector is growing fast Until recently, urban public transport in India – essentially fleets of buses – was old, poorly maintained, inappropriate and highly polluting. To meet increased urban mobility needs, mass transport projects have emerged in the form of metros and Bus Rapid Transport (BRT) with dedicated traffic lanes. Delhi Metro, whose first line opened in 2002, demonstrates this trend. Since then, around 10 more metros and extensions have been planned for the country’s main cities (Gurgaon, Jaipur, Mumbai, Chennai etc.). 1.1.2 - Bangalore, a dynamic city but also one of the most congested in the country Capital of the State of Karnataka, Bangalore is situated in the southeast of one of India’s most developed federal states. Indian public enterprises and multinational corporations have been outsourced there, fuelling the development of qualified sub-contracting activity and providing the bedrock for the emergence of a technology and economic hub. These specialised firms have created new jobs for the middle class. India’s third most populous city, Bangalore is experiencing the country’s fastest population growth after Delhi. In 30 years, its population has almost tripled to 8.5 million people today. The urban area is growing by 5.4% or about 22,000 hectares a year. The division of space reflects a two-speed urban growth. The East and South are home to tech hubs that meet international standards (particularly Electronic City or the International Tech Park) and gated communities housing the middle and upper classes. The North and West accommodate traditional industry and the poorest populations live there in slums and squalid living conditions. The clear separation between employment hubs and living quarters encourages people to buy a vehicle for transportation. Bangalore and Delhi have the greatest number of vehicles per inhabitant in the country. Transportation is divided as follows: public transport (bus) 34%, walking 28%, two wheels 18%, auto-rickshaw 9%, car 8% and bicycle 3%. 1.1.3 - Significant public transport growth: phase I of Bangalore Metro To meet these challenges, Bangalore has launched a first mass transport project: phase I of a metro system, covering 42km and with 40 stations, that is currently being constructed. It has two lines that cross at Majestic station, a major bus hub situated opposite Bangalore City Railway Station. The metro is projected to carry 900,000 people daily when it has fully entered service in 2016. In December 2012, AFD allocated funding for this first phase of construction via a sovereign loan of €110 million. For phase I, costing about 138,500 billion rupees or €2 billion, several international institutions participated alongside AFD, including the Asian Development Bank with a non-sovereign loan of $200 million and JICA with a $490 million sovereign loan denominated in Yen. An initial section of 6.7km with 6 stations in the East between MG Road and Bayappanahalli opened in October 2011. A second section of 9.9km with 10 stations between Peenya Industry and Mantri Square Sampige Road entered service in March 2014. Bangalore’s two metro lines are due to be fully operational in December 2015 for the East-West line and August 2016 for the North-South line. 1.2 - Government policy: upgrading urban infrastructure Cop-M2021 NCO Version Finale 2/7 In India, urban transport policy and strategy come under the Central Government, while planning and implementation come under the federal states. The National Urban Transport Policy is the national reference framework for urban transport. It has been in force since 2006 and was updated in 2014. In particular, it calls for: (i) an integrated transport approach with the setting up of transport organising authorities, (ii) joined up thinking between urban planning and transport development and guarantees (iii) financial support from Central Government to conurbations with more than 1 million inhabitants for mass public transport projects. At the national level, the 12th Five Year Plan (2012-2017) emphasises the traffic problems in India’s big cities that have come about with the increase in the number of private vehicles. It recommends fast urban rail networks and high-speed regional networks, the integration of different transport modes through transport mapping and the organisation of audits covering social and other such issues for transport projects. 1.3 - Importance for the country India has been experiencing continuous population growth for years. The urbanisation rate remains low and is increasing relatively slowly, going from 28% in 2001 to 31% in 2011, when the most recent census was carried out. However, the effects in absolute terms are big, with 91 million more urban dwellers in 2011 than in 2001. India’s overall urban population is set to grow from 340 million urban residents in 2008 to 590 million in 2030 and will be concentrated in Very Big Conurbations (VBC). Among the consequences for urban mobility are an
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