NAGPUR METRO RAIL PROJECT - PHASE II (EIB-20220640)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Investment Bank (EIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 20, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
MAHARASHTRA METRO RAIL CORPORATION LTD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Housing & Property
  • Labor & Livelihood
  • Marginalized Groups
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 252.27 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 252.27 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 240 million
Converted using 2024-12-16 exchange rate.
Project Cost (USD)
$ 798.85 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 760 million
Converted using 2024-12-16 exchange rate.
Primary Source

Original disclosure @ EIB website

Updated in EWS Dec 16, 2024

Disclosed by Bank Mar 18, 2024


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to EIB, the project concerns the second phase of Nagpur Metro Rail project that will connect the satellite towns of Nagpur city in the state of Maharashtra in India. It will serve as an extension to the ongoing first phase, with four extensions (North, South, East and West) totalling 44km and 32 stations.

The Project concerns four (4) extensions, at both ends of the two existing interconnected urban metro rail lines of Phase-I, totalling 43.8 km with 32 stations. Existing depots in Mihan and Hingna, constructed in Phase-I, will also be utilized in Phase II, which both have suitable capacity to manage the additional metro-sets as well.

ENVIRONMENT

In India, metro projects do not fall within the scope of the relevant Environmental Impact Assessment (EIA) legislation unless the built up area is beyond a defined threshold, in which case the project is subject to screening by the State level Competent Authority. The status of screening, if any, is to be determined during appraisal. 

Due to the significant environmental risks of the project, the project is categorized as category “A” for environmental safeguards.

OBJECTIVE

The project will contribute to two main objectives: (i) climate change mitigation, by promoting modal shift from road to rail and thereby a reduction of GHG emissions; and (ii) the development of social and economic infrastructure by making a key contribution to urban development, thereby improving the business environment for private sector development and facilitating access to amenities and jobs.

The project is in line with the EU Country Strategy Paper for India which highlights the infrastructure gap and need to address rising greenhouse gas emissions. It supports two main objectives of EIB External Mandate: (i) climate change mitigation, by promoting modal shift from road to rail while reducing greenhouse gas emissions, and (ii) social and economic infrastructure development, by contributing to urban development.

 

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

The civil works of NMRP-P2 corridors will entail construction of viaducts and elevated stations. Also, construction will take place along existing road corridors in a busy urban area. Thus, the civil works may increase congestion and pose safety risks for traffic on the existing roads. Moreover, transport of large quantities of construction material and heavy equipment machinery may bring safety risks and inconvenience to the local communities in the project area. 

Based on the SIA, total project affected households/families (PAHs/PAFs) are estimated to be 98 with total project affected people (PAPs) to be 486. Out of the 98 PAHs/PAFs, 51 are title holders (TH) and 47 are non-title holders (NTH). There are no residential and commercial structures of TH, as almost all TH have purchased the land for investment purpose. Regarding the NTH, these are basically street vendors, with no permanent structure (i.e. mobile vendors), located within the Right of Way (ROW) land. In addition to these, 3 common property structures (CPS) may be affected (e.g. public toilets, community structure of weekly market). The unavoidable loss of such assets will be compensated through replacement elsewhere or a suitable financial mechanism. No agriculture land is being affected due to the project

The social stratification of Displaced Households indicates that majority of the DHs belongs to Other Backward Caste (OBC) followed by general category. Most (81.82%) of the DHs belong to Hindu religion. This is followed by Muslim (12.50%). There are 57 DHs enumerated as vulnerable households in this project. There are 6.56% Displaced Persons (DPs) who are illiterate. Most of the DPs are engaged in small business activities.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Maha Metro is a Special Purpose Vehicle (SPV) created for the smooth implementation and operations of the Nagpur Metro Rail Project and is an equal equity joint venture of Government of India (GoI) & Government of Maharashtra (GoM). NMRCL shall be solely responsible for the successful and timely completion of the project & its operations subsequently. Nagpur Metro Rail Corporation Limited is Incorporated by Govt. of India Ministry of Corporate affairs on 18 February 2015.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contact information provided at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.eib.org/en/infocentre/registers/request-form/request-form-default.htm

ACCOUNTABILITY MECHANISM OF EIB

The EIB Complaints Mechanism is designed to facilitate and handle complaints against the EIB by individuals, organizations or corporations affected by EIB activities. When exercising the right to lodge a complaint against the EIB, any member of the public has access to a two-tier procedure, one internal - the Complaints Mechanism Office - and one external - the European Ombudsman. A complaint can be lodged via a written communication addressed to the Secretary General of the EIB, via email to the dedicated email address: complaints@eib.org, by completing the online complaint form available at the following address: http://www.eib.org/complaints/form via fax or delivered directly to the EIB Complaints Mechanism Division, any EIB local representation office or any EIB staff. For further details, check: http://www.eib.org/attachments/strategies/complaints_mechanism_policy_en.pdf

When dissatisfied with a complaint to the EIB Complaints Mechanism, citizens can then turn towards the European Ombudsman. A memorandum of Understanding has been signed between the EIB and the European Ombudsman establishes that citizens (even outside of the EU if the Ombudsman finds their complaint justified) can turn towards the Ombudsman on issues related to 'maladministration' by the EIB. Note that before going to the Ombudsman, an attempt must be made to resolve the case by contacting the EIB. In addition, the complaint must be made within two years of the date when the facts on which your complaint is based became known to you. You can write to the Ombudsman in any of the languages of the European Union. Additional details, including filing requirements and complaint forms, are available at: http://www.ombudsman.europa.eu/atyourservice/interactiveguide.faces

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