Project Summary Information (PSI)

Project No: 000038

Project Name Bangalore Metro Rail Project – Line R6

Country Republic of India
Sector Transport/Urban Rail
Project No 000038
Borrower Republic of India
Implementation Agency Bangalore Metro Rail Corporation Limited (BMRCL)
Environmental and Social Category A
Category
Date of PSI prepared or updated September 15, 2017
Estimated Date of Board December 2017
Consideration
Concept Decision Approved

I. Introduction

India is a fast growing and large developing economy, averaging around 7% growth per annum in the past
few years. Its Gross Domestic Product (GDP) was US$2.1 trillion in 2016, with a per capita GDP of around
US$1,613. Urban Indians now form about one-third of the population and they produce more than three-fifths
of India’s GDP. It is estimated that by the year 2050, fifty percent of Indians will be living in the cities 1.
However, infrastructure remains a key constraint to economic growth and urban development.

Bangalore is the capital city and the economic center of the State of Karnataka; it has been regarded as a fast-
growing metropolis in India. Bangalore is also known as the Silicon Valley of India and is the major contributor
to India’s software growth story. As per the Census in 2011, Bangalore is the third most populated city in India
and has a population of 9.6 million. It followed behind Mumbai and Delhi in terms of population of a city in
India. The population growth in Bangalore in a decade during 2001-2011 was 47.18% and during 1991- 2001
was 35.09%, making it one of the top cities in India for population growth.

The supply of public transport has not kept pace with travel demand and high dependency and high growth of
personal transport has exacerbated the traffic situation in Bangalore. This pattern has led to consistent traffic
jams in the city of Bangalore causing great economic loss to the Silicon Valley of India. The average travel
time via public transport compared with private transport in Bangalore has also been long as a result of lesser
supply of public transport, higher number of private vehicles and more traffic congestion. The increase in
personal vehicles for transportation has also caused severe air pollution and noise in Bangalore. As per the
Karnataka State Pollution Control Board, transportation is the prominent source of air pollution in Bangalore.

Bangalore Metro Rail Corporation Limited (BMRCL) was established as a joint venture company of
Government of India (GoI) and Government of the State of Karnataka (GoK), with equal holdings, to undertake
the task of developing Metro in Bangalore. BMRCL was formed under the Companies Act, 1956 on 12
September, 2005. BMRCL plans the new metro lines and operates and maintains the existing metro lines
(Bangalore Metro Phase I) complying with the National Urban Transport Policy formulated by the Ministry of
Urban Development, GoI.

To enhance coverage of Bangalore Metro system and to extend the Metro system to other important areas of
Bangalore per the Comprehensive Traffic and Transport Plan prepared in 2011, the Phase II project was

1 Country Profile: India, Population Division, Department of Economic and Social Affairs, United Nations
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approved by GoK in 2012 and subsequently by GoI in 2014. The Phase II project covers a total length of
approximately 73 kilometers with 61 stations (49 elevated and 12 underground). This project includes four
extension lines to the Phase I project and two new lines. The Project to be financed by the Bank is one of the
new lines, the so-called Reach 6, which runs north to south across the center of the city and connects some of
its most important nodes of development.

The European Investment Bank (EIB) will be the lead financier of the Project and will play a leading role in
procurement, environmental and social compliance, and project monitoring and reporting for the Project. For
further Project details, please see the following EIB’s website:
http://www.eib.org/projects/pipelines/pipeline/20160816

II. Project Objectives and Expected Results

The objective of the Project is to provide safe and high-capacity north-south connectivity through the center of
Bangalore by expanding the city’s metro system. The primary beneficiaries are the commuters that travel along
the corridor, and the secondary beneficiaries are the residents and commercial establishments situated along
the corridor. The expected results of the Project are improvement of the overall mobility of urban population
and further economic growth through better connectivity.

III. Project Description

The Line R6 to be supported by the Project runs from Gottigere to Nagavara in Bangalore and the length of
the proposed corridor is approximately 22 km with 6 elevated stations and 12 underground stations. The
Project consists of four components.

(i) Construction of Elevated Viaduct and Stations: The component consists of 7.5 km of elevated metro
section and 6 elevated stations.

(ii) Construction of Underground Section Tunnel and Stations: The component consists of 14.5 km of
underground metro section and 12 underground stations.

(iii) Depot: The component consists of a maintenance depot for the corridor at Kothanur.

(iv) Tunnel Ventilation System and Environment Control System

IV. Environmental and Social Category

The Bank has decided to use the EIB’s Statement of Environmental Principles and Standards 2009 (Statement)
since (i) it is consistent with the Bank’s Articles of Agreement and materially consistent with the provisions
of the Bank’s Environmental and Social Policy and relevant Environmental and Social Standards; and (ii) the
monitoring procedures that EIB has in place to ascertain compliance with its Statement are appropriate for
the Project. The Bank has placed the Project in Category A. The EIA notification (2006) of the Ministry of
Environment and Forest, GoI exempts metro rails from applying for environmental clearance. However, the
BMRCL has voluntarily carried out an Environmental Impact Assessment (EIA) in line with EIB standards.

The Project will require the acquisition of about 26 ha of land and will include both permanent and temporary
land acquisitions and involuntary resettlement of some residential households and businesses. Approximately
800 households are expected to be affected. An Environmental and Social Management Framework (ESMP)
has been prepared based on the findings of the EIA, to mitigate the environmental and social impacts due to
the Project.

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A Resettlement Policy Framework (RPF) has been prepared to address the involuntary resettlement under the
Project. The RPF has been subject to consultation with Project Affected Persons and disclosed, in English
and local language, on the following BMRCL website:
http://english.bmrc.co.in/FileUploads/e12b9f_CareerFiles.pdf

Public Consultations for the Project are being conducted and will continue throughout the construction phase.
Resettlement Action Plans (RAP), consistent with the RPF, is also being prepared concurrently. In order to
implement and monitor RAPs effectively, a Social and Environmental Management Unit (SEMU) has been
constituted in the BMRCL.

A Project-level Grievance Redress Mechanism has been set up to assist affected people to resolve their queries
and complaints.

The EIA (including an ESMP) for the Project was prepared by BMRCL and approved by EIB. The EIA
document is available on the following BMRCL’s website:
http://english.bmrc.co.in/FileUploads/862da0_CareerFiles.pdf

V. Estimated Project Cost and Financing Plan (in US$ million)

Total Project Cost: 1,785 Total AIIB Financing: 335

Loans/Credits/Others Amount
Borrower 867
AIIB 335
EIB 583
Total 1,785

VI. Implementation

The Project will be implemented by the BMRCL.

The procurement will be conducted in accordance with the EIB’s ‘Guidelines for Procurement’(GfP) as applied
to ‘Operations outside the European Union’. The GfP is materially consistent with both the Bank’s Articles of
Agreement and the Bank’s Procurement Policy.

Expected project implementation period (Start Date and End Date): October 2017 – December 2021

Contact Points

Asian Infrastructure Investment Bank (AIIB):

Mr. Soon-Sik Lee
Project Team Leader/Senior Investment Operations Specialist
Tel: +86 10 8358 0078
E-Mail: soonsik.lee@aiib.org

European Investment Bank:

Mr. Zoltán Donáth
Senior Sector Engineer
Tel: +352 4379 8 2798
E-Mail: z.donath@eib.org
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Borrower:
Mr. Bhaskar Dasgupta
Director (MI)
Department of Economic Affairs, Ministry of Finance, Republic of India
Tel: +91 11 2309 2883
E-Mail: bhaskar.dasgupta@nic.in

Implementation Agency:
Mr. S. Vasudevan
Chief Finance Officer
BMRCL
Tel: +91 80 2296 9325
E-Mail: vasudevan@bmrc.co.in