Ex-Ante Evaluation (for Japanese ODA Loan)
South Asia Division 1, South Asia Department, JICA
1. Name of the ProjectCountry: India
Project Name: Kolkata East-West Metro Project (III)Loan Agreement: September 28, 2018
2. 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 and motorcycles have been increasing rapidly, whereas
the development of public transportation has not progressed and traffic jams dueto increasing demand for road traffic have been a serious problem in major cities
such as in Delhi, Mumbai, etc., aggravating economic losses and health damage
due to automobile pollution such as air pollution/noise, etc. For this reason, thedevelopment of public transportation systems is essential to mitigate traffic jams
and to improve the urban environment.
In order to deal with the above problems, the Government of Indiaemphasizes the development of public transportation systems from the viewpointof safety/energy efficiency/social environment conservation, in addition to dealing
with the demand for transportation due to the recent economic growth. In addition
to the overcrowding population in the Kolkata metropolitan area, public
transportation depends heavily on road traffic. On the other hand, the extremely
small area ratio of the roads in the city intensifies traffic congestion, aggravating
air pollution/noise due to automobiles. The West Bengal State Government
formulated the Kolkata Integrated Traffic Improvement Plan in 1997 and has
developed interchanges and elevated roads in order to improve road trafficconditions. The Integrated Multimodal Public Transport Plan for Calcutta
formulated in 2000 points out the importance of comprehensive management ofvarious traffic modes in urban transport. The Master Plan for Traffic andTransportation in KMA formulated in 2004 points out the necessity of developing
urban transportation networks by an approach from both users and facilities. In
the plan, the state government sets a prioritized policy as mitigating traffic
congestion and providing a safe, inexpensive and environmentally friendly
transportation network by focusing on developing an arterial network of buses inthe surrounding area, shifting from road traffic to rail transit in the central area,and restricting the inflow of vehicles into the central area through traffic demandmanagement. In keeping with such series of state government’s traffic policy, theKolkata Metropolis Traffic Improvement Master Plan formulated by the Kolkata
Metropolitan Development Authority (KMDA) in 2001 puts emphasis on theconstruction of a mass transportation system for the purpose of promoting theshift from road traffic to rail transit, in order to deal with increasing traffic volumeand aggravating environmental problems, and accordingly, the East-West Metro
Project in Kolkata (hereinafter referred to as “the Project”) is positioned as apriority project to realize these plans/policies.
(2) Japan and JICA’s Policy and Operations in the Urban Transport Sector
In Japan’s Country Assistance Policy for India (March 2016) stipulates thatthe development of railways (including high-speed rail and urban railway) shall benecessary in order to reinforce the connectivity within and among the majorindustrial cities/economic zones in India by setting forth “reinforcement of theconnectivity” through the development of transportation infrastructure, etc. as thepriority area with the aim at resolving the infrastructure bottleneck against
investment and growth. Also, in order to eliminate the bottleneck in economic
growth, JICA Country Analysis Paper for India (March 2012) provides an analysis
that, mainly in the industrial agglomeration areas such as special economiczones and economic corridors located in the six major metropolitan areas in India
and the Delhi – Mumbai Industrial Corridor, it is necessary to promote regional
economic development facilitation and logistics optimization, and to support
infrastructure development including arterial railroad, urban railway, roads, andharbors which contribute to increased investment from the foreign capital; theProject is positioned as “transport network development and maintenance” listed
as a subject to be addressed by JICA in the above priority areas and is consistent
with these policies and analyses. Among ODA loans to India, there were 59 ODA
loan approval cases totaling 2,124.3 billion yen to the transportation sector as ofthe end of August 2018, including 36 ODA loan approval cases totaling 1,646.7
billion yen as of the end of August 2018 to the railway urban transport sector toprovide support for subway projects such as Delhi Metro, etc. Note that the firstphase (LA signed in 2008, the approved amount of 6,437 million yen) and thesecond phase (LA signed in 2010, the approved amount of 23,402 million yen)
have already been provided for the Project.
The Project is also expected to contribute to achieving Goal 9 of the SDGs
(Build resilient infrastructure, promote sustainable industrialization and fosterinnovation) and Goal 11.6 of the SDGs (Make cities inclusive, safe, resilient, andsustainable).
(3) Other Donors’ Activity
The World Bank supports the Mumbai Urban Transportation Project (roadand suburban railway improvement) and the Eastern Dedicated Freight Corridor
project. The Asian Development Bank (ADB) is providing institutional and otherassistance to India’s railway sector, especially for organizational reforms of IndianRailways.
3. Project Description(1) Purpose of the project
The objective of the Project is to cope with the increase of traffic demand in
Kolkata metropolitan area by extending the mass rapid transit system, thereby
promoting regional economic development and improving urban environment,
through mitigation of traffic jams and decrease of pollution caused by increasing
motor vehicles.
(2) Project Site/Target Area
Kolkata metropolitan area in West Bengal State(3) Project Description1) Civil works [total length of 16.5 km (section: Howrah Maidan Station – Salt
Lake Station), underground section of 10.8 km, elevated road section of 5.7km, 12 stations] (Note that in the Project, the policy to change the train track
plan was decided in October 2015 due to a change in the land acquisition
plan.) (Total length: 13.9 km, underground section of 8.6 km, elevatedsection of 5.3 km, 12 stations, according to the plan before modification)

(Viaduct section: Domestic competitive bidding, Underground section:International competitive bidding) (Contract already signed)
2) Railway track construction (International competitive bidding) (Contractalready signed)3) Electrical/Mechanical work (International competitive bidding) (Contractalready signed)
4) Signal/Communication work (International competitive bidding) (Contractalready signed)5) Automatic Fare Collection system (International competitive bidding)(Contract already signed)
6) Station equipment-related (International competitive bidding) (Contractalready signed)
7) Procurement of Rolling Stock (84 cars: 14 trains, 6 cars/train) (Internationalcompetitive bidding) (Contract already signed)
8) Depot construction (Domestic competitive bidding) (Contract already signed)
9) Tunnel Ventilation System (International competitive bidding) (In the processof contract procedures)
10) Station Environmental Management System (International competitivebidding) (In the process of contract procedures)11) Consulting Services: basic design/bidding assistance/construction
supervision, etc.) (Shortlist system) (Contract already signed)
The subject fields covered by the ODA loan are the civil work in theunderground section, the signal/communication system, the automatic farecollection system, procurement of rolling stocks, the tunnel ventilation system,
the station environment management system, and the consulting service.
(4) Estimated Project Cost
133,143 million yen (of which, the ODA Loan amount is 72,618 million yen and asubsequent loan of 25,903 million yen)(5) Schedule
March 2008 – March 2021 (157 months in total). The commencement date ofservice (March 2021) shall be the time of the Project’s completion.
(6) Project Implementation Structure1) Borrower: The President of India
2) Guarantor: None
3) Executing agency: Kolkata Metro Rail Corporation Limited: KMRCL
4) Operation/Maintenance Agency: Operation and maintenance after theproject completion will be taken over to the Metro Railway, Kolkata (MRK), apart of Ministry of Railways, where some board members are working
concurrently with KMRCL.
(7) Collaboration and Division of Roles with Other Projects and Donors
None(8) Environmental and Social Consideration/Poverty Reduction/Social Development
1) Environmental and Social Consideration(i) Category: A(ii) Reason for Categorization
The Project falls into the railway sector and the influential characteristics,
both being listed in the “Japan Bank for International Cooperation

Guidelines for Confirmation of Environmental and Social Considerations”(established in April 2002) (“JBIC Guidelines”).
(iii) Environmental Permit
Although preparation of an Environmental Impact Assessment (EIA)
Report regarding the Project is not required under the domestic law inIndia, an EIA Report was prepared by the executing agency andapproved by the Environmental Department of West Bengal State in
November 2006 based on the provisions of West Bengal State.
Thereafter, revised versions of the EIA report were prepared in
September 2007 and February 2017. (Approval of revised versions of
EIA is unnecessary.)(iv) Anti-Pollution Measures
As for noise, measures to reduce it such as installing soundproof
walls/soundproof pads are planned. Regarding the impact on the ground
during construction, no serious influence due to land subsidence isexpected, since loose ground and the inflow of groundwater will be
prevented by adopting the shield construction method. Note that theenvironmental management plan has been formulated with the support ofconsultants hired in the Project.
(v) Natural Environment
The target area of the Project is located in urban areas and it is assumed
that the undesirable impact on the natural environment is minimal, since
the planned train track passes mostly along existing roads.
(vi) Social Environment
The land area required for the Project is 19.5 ha (private land of 0.75 ha,government-owned land of 18.3 ha, and land owned by the State
Corporation of 0.44 ha). 490 homes and structures will have to be
relocated due to the Project. The KMRCL has held consultations withthose who are subject to land acquisition/resident relocation, and theprocedures for land acquisition/resident relocation are to be completed
by December 2017 based on the Land Acquisition Law and the resident
relocation plan prepared by the KMRCL. Note that during the stakeholder
consultations, a dissenting opinion on the project has not been confirmedin particular.
(vii) Other/Monitoring
In the Project, the contractors monitor noise, air quality, water quality,
groundwater levels, and the KMRCL monitors land acquisition/resident
relocation during construction. MRK will monitor all of these after thecommencement of the service.
2) Cross-cutting Issues:(Climate change)
The Project aims at mitigating traffic congestion and heavy traffic due tovolume of vehicles by constructing a mass transportation system andfacilitating the utilization of automobiles, thereby contributing to thereduction of greenhouse gas (GHG) emissions. The mitigation effect of theProject on the climate change (rough estimate of GHG emission reduction)
is about 42,000 tons/year of CO2 equivalent.
(Consideration for persons with disabilities)
In accordance with the domestic laws in India, consideration for usability forthe elderly and persons with disabilities will be adopted for the station

buildings/passenger cars (elevators, toilets, station announcement, brailleblocks, wheelchair space, etc.), and customer care training for all frontline
staff including station staff and members of the train crew is planned.
3) Gender Category:[Gender Category]: GI(S) (Gender Activity Integration Project)<Description of activities and reason for classification>
In the Project, measures such as setting priority seats for passengers
needing assistance, installing CCTV cameras in station buildings/trains, andintroducing low hand straps are planned so that women can use the subway
safely and comfortably. Therefore, it is categorized as a Gender Activity
Integration Project.
(9) Other Important Issues
None in particular
4. Targeted Outcomes(1) Quantitative Effects
1) Performance Indicators (Operation and Effect Indicator)

Indicator

Baseline(Fiscal 2007)

Operating rate (%/year)－
Running distance (1,000 km/day)－Number of running train－(number/day-direction)
Volume of transportation (million－passengers-km/day)Income from passenger (million－rupees/day)(Section: Howrah Maidan Station – Salt Lake Station)

Target (Fiscal 2023)[Expected value
2 years after projectcompletion]
89.4
27.6
213
3.27
9.37

(2)

Qualitative Effects
Mitigation of traffic congestion in the Kolkata metropolitan area, mitigation oftraffic pollution (reduction of global warming gas emissions, etc.), improvement inconvenience by securing the scheduled mobility of the area, and economic
development of the Kolkata metropolitan area(3) Internal Rate of Return
Under the conditions indicated below, the economic internal rate of return (EIRR)
and the financial internal rate of return (FIRR) will be 12.96% and 1.00%,respectively.
[EIRR]
Cost: Project cost (excluding tax), operation and maintenance expenses
Benefits: Operational maintenance and management cost reduction effect on theroads of the conventional transportation (bus, etc.), shortening effect on thetraveling time for the users of the main line and other transportation, and traffic
accident decline and the pollution mitigation effectProject Life: 30 years

[FIRR]
Cost: Project cost, operation and maintenance expenses
Benefits: Fare income, advertisement revenue, and real estate development
revenue
Project Life: 30 years
5. Prerequisites / External Factors(1) Prerequisites: Land acquisition/resident relocation in accordance with theschedule of India(2) External Factors: None in particular
6. Lessons Learned from Past Projects
From the ex-post evaluation of the “Delhi Mass Rapid Transport System Project
Phase 3 (III)” for India, important lessons are acquired that it is desirable to promote
efficiently operating public transportation systems as a whole by mutual cooperation of
public transportation systems to construct systematic urban transport rather than thecompeting relationship among them and that it is important to establish a financiallyindependent implementation system of projects from the viewpoint of ensuring proper
operation and maintenance.
Also, in the Project, an increase in the utilization rate is indispensable forreinforcing the financial aspect, and coordination with the West Bengal State
Transportation Bureau will take place so that the subway line is not competing with thebus route. In addition, MRK is engaged in strengthening its financial structure byimplementing relevant businesses such as advertisement/real estate development.
7. Evaluation Results
In addition to Kolkata, JICA has supported urban railway construction projects inother metropolitan areas (Delhi, Bangalore, Mumbai, Chennai, Ahmedabad), andcontinuously supporting the Project, which is required as a measure against serious
traffic jams in Kolkata, based on its experiences and knowledge along with the first andsecond phases that have already been supported, is consistent with the development
issues/policies of India and the support policies/analysis of Japan and JICA. Also,
since it is considered to contribute to achieving Goal 9 of the SDGs (building resilientinfrastructure) and Goal 11.6 (inclusive, safe, resilient, and sustainable cities), it ishighly necessary for JICA to support the implementation of the Project.
8. Plan for Future Evaluation(1) Indicators to be Used
Same as 4. (1) - (3)(2) Timing of the Next Evaluation
Ex-post evaluation: 2 years after project completion
END