Ex-Ante Evaluation (for Japanese ODA Loan)
South Asia Division 1, South Asia Department, JICA
1. Name of the ProjectCountry: India
Project: Bengaluru Metro Rail Project (Phase 2)
L/A signing date: March 26, 20212. Background and Necessity of the
Project(1) Current State and Issues of the Urban Transportation Sector in India
Rapid urbanization has progressed in India recently and the number ofregistered automobiles has also been increasing rapidly (from around 55 million
vehicles in 2001 to approximately 230 million vehicles in 2016), leading toincreased demand for road transportation, yet the development of public
transportation infrastructure has not progressed and traffic jams due toincreasing demand for road traffic have been a serious problem in major cities
such as Delhi, Mumbai, Kolkata and Bengaluru, etc., aggravating economic
losses and health damage due to automobile pollution such as air
pollution/noise, etc.
In order to deal with the above problems, the Government of India in its “Metro
Rail Policy” (latest version updated in 2017) has set forth a policy promoting thedevelopment of public transportation systems such as metro, rail and bus, etc.
from the viewpoint of safety/energy efficiency, etc. in addition to mitigating traffic
congestion and dealing with the demand for transportation due to recent
economic growth. Construction of a metro system in the metropolitan area isparticularly recommended to enable high-volume transportation without putting
undue pressure on existing road capacity.
Bengaluru, the capital city of Karnataka State, is known as India’s Silicon
Valley, with economic growth following its development as an industrial zone,
and a 46.7% rate of population increase in the 10-year period from 2001 to 2011,giving an annual average of approximately 3.9%, which is the highest rate ofany major city in India. Like other cities, traffic congestion is arising due to theincrease of registered vehicles (from around 1.56 million in 2005 to approx. 8
million in 2019), and according to a survey of private enterprises, Bengaluru hasrecorded one of the world’s highest levels of congestion-related delay, withtravel by car taking approximately 1.5 times longer than when there is nocongestion (placing Bengaluru 6th out of 416 cities in 57 countries around theworld as of 2020), and the Bengaluru Master Plan 2031 (hereinafter referred toas “BMP2031”) indicates that this leads to annual economic loss ofapproximately 53 billion yen. Also, regarding air pollution for which automobile
exhaust fumes are a major source, the annual average of PM2.5 emissions in
Bengaluru is about 3 times the WHO standard, and as of 2015 the CO2
emissions from the transportation sector in Bengaluru were second highest only1

following Delhi in India. The number of respiratory illnesses for which air
pollution is thought to be a factor increased by approximately 80% in a 5-year
period from 2015. Under such circumstances, the Karnataka State Governmenthas been promoting a Metro Construction Plan under the Bengaluru Master
Plan 2015, and in 2017 Phase 1 of the plan was completed and opened. The
BMP2031 (revised in 2020) aims to increase public transportation coverage(currently at 47%) to 70% by 2031, promoting total extension of the metro
system from its current length of approximately 43 km to approximately 320 km.
This includes development of a total length of 133.0 km in Phase 2 of the plan,
which is set to be completed by 2027, and the Bengaluru Metro Rail Project(Phase 2) (hereinafter referred to as “the Project”) establishes 3 lines (lines 2A,
2B and 6, covering a total of approx. 80 km), including lines along the inner-city
outer ring road and along the airport road from the current ring-road to the airport
on the outskirts of the city. Traffic volume at major intersections located directly
above each line is of the largest scale in Bengaluru (up to approx. 250,000
vehicles/day), causing particularly severe congestion on these roads (reference:
maximum traffic volume at intersections within Tokyo Metropolitan Area isapprox. 90,000 vehicles/day). The Project aims to deal with increasing transportdemand in Bengaluru, which is facing the above issues, by constructing a mass
rapid transportation system, and contributes to reduction of automobile pollution
through mitigation of traffic congestion, development of the regional economy,
and mitigation of climate change, etc., so it is positioned as an important projectin India’s urban transportation sector.
(2) Japan and JICA’s Urban Transportation Sector Policy and the Positioningof the ProjectCountry Assistance Policy for India (March 2016) formulated by theGovernment of Japan stipulates that the development of railways (including
high-speed rail and metro) shall be necessary in order to strengthen connectivity
among major industrial cities and economic zones in India by setting forth“Enhancing Connectivity” through the development of transportation
infrastructure, etc. as the priority area with the aim at resolving the infrastructure
bottleneck against investment and growth. “Strengthening industrial
competitiveness” through urban foundation maintenance, etc. is also set out as
an important field for assistance, together with the promotion of transportation
infrastructure, etc. in major metropolitan areas by constructing subways, etc.
with the aim of mitigating traffic congestion, optimizing passenger/freighttransport and improving the urban environment, etc. Also, in order to eliminate
the bottleneck in economic growth, the JICA Country Analysis Paper for India(March 2018) provides an analysis that, mainly in the industrial agglomeration
areas such as special economic zones and economic corridors located in thesix major metropolitan areas in India as well as the Chennai – Bengaluru

2Industrial Corridor and the Delhi – Mumbai Industrial Corridor Line, cooperation
for measures to deal with environment and climate change issues are being
promoted as a means of support continuous, comprehensive growth, and it isnecessary to promote regional economic development facilitation and logistics
optimization, and to support infrastructure development including arterial
railroad, urban railway, roads, and harbors which contribute to increased
investment from the foreign capital. The Project is consistent with these policies
and analyses.
The Project is also expected to contribute to the achievement of Goal 9 (Build
resilient infrastructure, promote sustainable industrialization and foster
innovation), Goal 11 (Make cities inclusive, safe, resilient and sustainable, andGoal 13 (Take urgent action to combat climate change and its impacts) of the
Sustainable Development Goals (SDGs), so the Project’s implementation ishighly necessary.
(3) Other Donors’ Activities
The Indian Government has received funding from the World Bank for the
Mumbai Urban Transport Project (approved in 2002 and 2010, total of US$972
million) and the Eastern Dedicated Freight Corridor Project (approved in 2011,2014 and 2015 total of US$2.725 billion). There has also been support from the
Asian Development Bank (ADB) for the Jaipur Metro Rail Project (approved in2013, US$157 million), and cooperative financing with the New Development
Bank for the Mumbai Metro Rail System Project (Lines 2A, 2B, 7; approved in
2019; approved amounts of US$926 million from ADB and US$260 million fromco-financing). The Indian Government is raised funds from multiple donors for
the Project too. Specifically, there is funding of approximately US$500 million
from ADB scheduled for a civil works package covering Lines 2A and 2B (to beapproved March 2021), and there is funding of US$583 million from European
Investment Bank (EIB) and US$335 million from Asian Infrastructure Investment
Bank (AIIB) for the civil works package covering Line 6 (approved in December
2017 ）(see 3.(3) for details of funding provided by each donor). Also, theAgence Française de Développement has provided 110 million euros in the
Bengaluru Metro Rail Project (Phase 1 Construction Plan) and 200 million euros
in Phase 2 Construction Plan (separate lines from the Project; extension of eastwest and south-north line, etc.). Moreover, the Indian Government has raised
as an important issue for fundraising donors the maintenance of public
transportation contributing to mitigation of traffic congestion, etc. in India.
3. Project Description(1) Project Objective
The objective of the Project is to cope with the increase of traffic demand in
Bengaluru, the capital city of the State of Karnataka in southern India, by

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expanding the mass rapid transportation system, thereby promoting regional
economic development, improving urban environment and eventually mitigatingclimate change, through relief of traffic congestion and decrease of pollution
caused by increasing motor vehicles.
(2) Project Site/Target Area
Bengaluru City, State of Karnataka (population: approx. 14 million)(3) Project Componentsa) Civil works (underground railway of about 14 km, above-ground railway
of about 2 km, elevated railway of approx. 64 km, and underground,
above-ground and elevated road stations (8) (total 48 stations)b) Procurement of materials for track/switches, ventilation and airconditioning equipment, etc.
c) Electrical maintenance work for stations, rolling stock maintenance sites
and transformer substations, etc.
d) Automatic fare collection systeme) Signaling and train control systemf) Communication systemg) Procurement of rolling stock (318 standard-gauge stock)h) Construction of rolling stock maintenance sites (3 sites)i) Consulting services (design review, bidding assistance, construction
supervision, etc.)j) The fields covered by the ODA yen loan as requested by the Indian
Government are items 5), 7) and 9). For items 1) and 8), the executing
agency is procuring fund from other donors, while items 2), 3), 4) and 6)
are to be self-funded by the executing agency. Note that item 9),
consulting services, is mainly limited to the fields covered by the ODA
yen loan.
(4) Estimated Project Cost
418,062 million yen (including loan amount of 52,036 million yen)(5) Schedule
March 2021 – August 2029 (102 months in total). The commencement ofoperation for all the lines (February 2027) shall be the time of the Project’s
completion.
(6) Project Implementation Structure1) Borrower: The President of India
2) Guarantor: None
3) Executing Agency: Bangalore Metro Rail Corporation Limited (hereinafterreferred to as “BMRCL”)
4) Operation and Maintenance Agency: Same as above(7) Collaboration with Other Schemes and Donors
1) Japan’s Assistance Activity: N/A

42) Assistance activities of other donors, etc.: Under approval from the Central
Government and Karnataka State Government, BMRCL, the executing
agency, is the main constituent raising funds from multiple donors.
Assistance for a civil works package for lines 2A and 2B is being received
from ADB, and assistance for a similar package for line 6 is being received
from EIB and AIIB. Regarding the schedules and interfaces between eachpackage arising from the assistance of multiple donors, BMRCL will
regularly and frequently hold meetings at multiple levels and makenecessary adjustments.
(8) Environmental and Social Considerations, Cross-Sectoral Issues, andGender Categorization
1) Environmental and Social Considerationsi) Category: Aii) The project falls into the railway sector under the JICA Guidelines forEnvironmental and Social Considerations (April, 2010).
iii) Environmental Permit: Although preparation of an Environmental
Impact Assessment (EIA) Report regarding the Project is not required
under the domestic law in India, reports were prepared by the
executing agency (BMRCL) for lines 2A and 2B in September 2020and for line 6 in August 2017, and these have been internallyapproved by the executing agency.
iv) Anti-Pollution Measures: Regarding air quality, water quality, waste,noise and vibration during construction work, there are plans toensure conformance to India’s emissions standards andenvironmental standards by means of sprinklers, covering of transport
vehicles, wastewater treatment, excavated earth treatment, use of
low-noise machinery, and installation of noise barriers, etc. Whenfacilities are open to the public, there will be some drainage fromstation buildings and railyards, but water used to wash rolling stock
will be separated with oils, etc. collected in separation tanks, after
which the water will be stored in a reservoir for reuse, andmiscellaneous drainage and sewage will be treated at regional
sewage treatment plants. Likewise, any waste that comes fromstation buildings and railyards will be disposed of in accordance withnational law.
v) Natural Environment: Because the project area and its surroundings
are not in any protected natural area, there are no particularforeseeable impacts on the natural environment. Trees are being cut
down due to the Project, but 10 trees are being planted for every 1tree cut down.

5vi) Social Environment: This Project requires the acquisition of sites
amounting to a total area of about 63 ha and the involuntary relocationof 2,131 people (458 households). Both the acquisition of the land
and the relocation of the residents have already been completed
according to the Karnataka Industrial Area Development Board Act,the national policy on the resettlement and rehabilitation for projectaffected families, and resettlement plans based on the regulations ofdonors such as ADB, etc. It is confirmed that there is no divergencefrom the JICA Environmental Guidelines regarding compensation
standards, site acquisition or the resident relocation process, etc. No
objections have been lodged against the Project in consultation
meetings with residents. Consent to site acquisition has beenobtained from all Project-affected households on all lines as ofDecember 2020.
vii) Other/Monitoring: During construction phase, the executing agency
and contractors will monitor air quality, water quality, noise andvibration, and afforestation, etc., and the executing agency will dolikewise when the facilities are open to the public. In accordance with
ADB guidelines, Lines 2A and 2B will be subject to environmental
management by the executing agency as well as periodic evaluation
by outside experts during the construction period. Regarding landacquisition, relocation of residents and the living conditions ofresidents after relocation, these will be monitored by the executing
agency and outside experts from the construction phase through until
the facilities are open to the public.
2) Cross-Sectoral Issues:i) Climate change: The Project is thought to contribute to mitigation ofclimate change as it contributes to the reduction of greenhouse gas
emissions by promoting a modal shift. Note that the application of amass rapid transport system is included as one of the strategies
relating to mitigation policy in India’s Nationally Determined
Contribution (NDC), and the Project is highly regarded. The mitigation
effect of the Project on the climate change (rough estimate of GHG
emission reduction) is forecast to be about 89,952 tons/year of CO2
equivalent (as of 2031).
ii) Consideration for Disabilities: In accordance with the domestic laws
in India, consideration for usability for the elderly and persons withdisabilities will be adopted for the station buildings/passenger cars
(elevators, toilets, station announcement, braille blocks, wheelchair
space, etc.), and customer care training for all frontline staff including
station staffs and train crew is planned.

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iii)

Controlling AIDS/HIV: It has been confirmed with BMRCL that
contracts with construction businesses include implementation of
AIDS countermeasures such as activities to make workers aware of
prevention, etc. Moreover, at the time of screening, the executing
agency agreed to a list of measures that must be taken when
formulating projects and implementing projects (total of 36 items) tocontrol COVID-19 infections. Items include the formulation andthorough adherence to behavior patterns for preventing infections,providing contractual consideration for contractors when infections
increase, etc.
3) Gender Category:[Gender Category]: ■GI(S) (Gender Activity Integration Project)<Description of activities and reason for classification>
In the Project, measures such as introducing women-only carriages,
setting priority seats for passengers needing assistance (including
women), and installing CCTV cameras in station buildings/trains are being
taken. Also, as well as ensuring same wages for men and women on
construction sites and providing facilities for female workers, female
personnel are also being appointed to manage project implementation, so
it is categorized as a Gender Activity Integration Project.
(9) Other Important Issues: None in particular.
4. Targeted Outcomes(1) Quantitative Effects
1) Outcome (Operation and Effect Indicator)
Baseline(results from 2020)－

Target (2029)(2 years after completion)Line 2A－

92

Line 2B

－

92

－

92

Indicator
Operation rate (%/ year)

Line 6
Running distance (thousand
km/ year)Line 2A－

Line 2B
Line 6
Number of trains (number ofrunning trains / day / direction)Line 2A

－

5,242

－

9,161

－

5,248

－
－

150

Line 2B－

233

Line 6－125

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Transportation volume (million
passenger - km/ day)Line 2A－

Line 2B
Line 6
Income from passenger (million
Rupees/ day)Line 2A

－

3.1

－

6.9

－

4.7

－
－

10.0

Line 2B－

18.9

Line 6－

17.0－

Running distance of womenonly cars(thousand km/ year)
Line 2A－

874

Line 2B－

1,527

Line 6－875

Note: Target section from start point to terminus of each line
(2) Qualitative Effects
Improvement of traffic conditions in Bengaluru, Mitigation of traffic pollution;
Mitigation of climate change, Mitigation of health issues caused by air pollution,
Improvements of convenience by ensuring punctuality of movement, Theeconomic development of Bengaluru, and Enhancement of female
empowerment in Bengaluru.
(3) Internal Rate of Return
According to the following preconditions, the Project’s Economic Internal
Rate of Return (EIRR) and the Financial Internal Rate of Return (FIRR) willbe 15.4% and 5.8%, respectively.
[EIRR]
Cost: Project cost, operation and maintenance cost (all excluding tax)
Benefits: Shortening effect on traveling time for the users of metro androads, reduction of vehicle maintenance costs for metro and road users,
reduction of maintenance costs for road traffic infrastructure, traffic
accident decline and emission reduction effect of environmental pollutants.
Project Life: 30 years[FIRR]
Cost: Project cost, operation and maintenance expenses (including tax)
Benefits: Fare box revenue, advertisement revenue, and station commercial
and front area development revenue, etc.
Project Life: 30 years
5. Preconditions and External Factors(1) Preconditions: None8(2) External Factors: None
6. Lessons Learned from Past Similar Projects and Application in thisProject
From the ex-post evaluation reports of India’s Delhi Mass Rapid Transport
System Project and Phase 2 of the same project (evaluation years 2010 and2015), etc., reinforcement of the skills and abilities of internal personnel taking
into account Delhi Metro Rail Corporation’s continuous phase implementation
has been evaluated as good practice. As part of the consulting services forinternal personnel, skills transfer of project management-related know-how was
carried out, which enabled internal personnel to independently manage theproject in Phase 2, one highlighted reason for which is contribution to dispersionof the necessary skills and abilities for metro rail management by undertaking
external projects such as metro construction projects, etc. both domestically andabroad. Another issue raised in the same evaluation reports is that of ensuring
convenient transfer to other public transportation at subway stations, from which
the lesson has been learned that it is desirable to establish station squares basedon coordination with public transportation operating public transportation systems
such as feeder buses, etc.
In the Project, like Delhi Metro Rail Corporation, BMRCL, based on its previous
initiatives to reinforce internal personnel, is planning to implement continuous
technology transfer relating to supervision of project implementation andoperation, management and maintenance of the metro system through consulting
services for the Project with the aim of further enhancing the abilities of theseinternal personnel. Also, based on the overall urban plan in BMP2031 (which iscurrently being formulated), the Project stresses connectivity with other modes oftransportation, and BMRCL is set to pick up from the Phase 1 Project bypromoting construction of highly convenient station squares for transfers, etc.
There are plans for stations established in the Project to have platforms for feeder
buses and auto rickshaws. Also, while line 2B is an airport connection line, there
are plans to directly connect the terminus inside the airport to maximize
convenience at the terminal station.
7. Evaluation Results
The Project aims to cope with the increase of traffic demand in Bengaluru, thecapital city of the State of Karnataka in southern India, by expanding the mass
rapid transportation system, thereby promoting regional economic development,
improving urban environment and eventually mitigating climate change, throughrelief of traffic congestion and decrease of pollution caused by increasing motor
vehicles and is consistent with the development issues and policies of India andthe assistance policies and analysis of the Government of Japan and JICA.

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The Project is also expected to contribute to the achievement of Goal 9, Goal
11, and Goal 13 of SDGs, so there is a great necessity for assisting with theimplementation of this Project.
8. Plan for Future Evaluation(1) Indicators to be Used
As indicated in section 4 above.
(2) Timing of the Next Evaluation
Ex-post evaluation: 2 years after the Project’s completionEND

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