Ex-Ante Evaluation(for Japanese ODA Loan)
South Asia Division 1, South Asia Department
Japan International Cooperation Agency
１．Basic Information（１）Country: India（２）Project Title: Dedicated Freight Corridor Project (Phase 1) (V)（３）Project Site/ Target Area: National Capital Territory of Delhi, The states ofHaryana, Rajasthan, Gujarat, and Maharashtra (total population: approx.
500 million (2011 India Census))
Loan Agreement: February 20, 2024
２．Background and Necessity of the Project（1）Current State and Issues of the Railway Sector and Priority in India

In India, freight traffic is growing at an annual rate of about 10%, while freightrail capacity is approaching its limits. The share of freight transported by rail isalso declining, and the development and expansion of railways, which are moreenvironmentally friendly and capable of mass transport than roads, is essential
for India's economic growth. In particular, the “Golden Quadrilateral”, linking thecapital, Delhi, the country's consumption and production center, Mumbai, theeastern and western gateway of the Indian subcontinent, Kolkata, and thesoutheast city, Chennai, represents approximately 60% of the country's freighttraffic. As containerized cargo and the transportation of agricultural and mineral
resources are expected to continue to grow, there is a need for an increase to thecapacity and speed of rail freight transportation and to improve transportation
capacity by linking with other modes of transportation. (Indian Ministry ofRailways, 2020)
In response, the Government of India, in its Three-Year Action Plan (FY2017FY2019) and the 12th Five-Year Plan (FY2012-FY2016), refers to the need toexpand lines and introduce high-speed freight cars to enable mass transportation
on major railways and improve access to port facilities. In particular, the need forearly development of the Dedicated Freight Corridor (DFC) between Delhi andMumbai (Western Corridor) and between Ludhiana and Kolkata via Delhi(Eastern Corridor) and for increase in the number of passenger coaches andfreight wagons is emphasized and the “Dedicated Freight Corridor Project (Phase1(V))” (hereinafter referred to as “the Project”) is based on these needs. Inaddition, the recently announced National Infrastructure Pipeline Plan (FY 2019-2025) also stresses the importance of transportation infrastructure development,including railways. This Project is in line with such development policies of theGovernment of India.
（２）Japan’s and JICA’s Policy Cooperation and Operations in the Railway
Sector (especially in relation to key foreign policies such as the Free and Open
Indo-Pacific Partnership (FOIP))Country Assistance Policy for India (March 2016) identifies enhancing
connectivity as one of the priority areas of assistance. It states that assistancewill be provided for the development of transportation infrastructure, including
railways and other sectors that will serve as transportation hubs and networks, inorder to enhance connectivity within and between major industrial cities andregions in the country. The Project will also contribute to the low-carbonization ofthe transportation sector through the development of freight transportation
system throughout India. The Project is consistent with the Country Assistance
Policy for India and the efforts of “Addressing Challenges in an Indo-Pacific Way(Climate and Environment)” in the New Plan for a Free and Open Indo-Pacific(FOIP). In addition, the JICA Country Analysis Paper on India (March 2018) also
states that with a large portion of the population expected to move into the middle
class by 2030, there is a need to “develop high-productivity industries” to meetthe growing demand for consumption and other services, and to do so, there is aneed to strengthen connectivity by developing economic corridors to improvelogistics and movement of people. The paper also mentions the need to continue
and expand support for infrastructure development and other activities to address
the enormous development needs and further stimulate private sector economicactivity. In addition, the JICA Global Agenda for Transportation (September 2021)
states that efficient transportation to eliminate coordination bottlenecks will be anarea of focus in the future, given the significant year-on-year increase ininternational container transportation, and this Project is aligned with thesepolicies and analyses.
In terms of ODA loans to India, as of December 31, 2023, 83 ODA loans totaling
4,188,628 million yen have been approved for the transportation sector in India.
ODA loans to the railway sector include support for metro projects in Delhi,
Mumbai, Kolkata, Chennai, Bengaluru, Ahmedabad, and Patna, with 53 ODA
loans totaling 3,494,423 million yen as of December. For this Project, a total of326,532 million yen has been committed for a total of four terms since the Loan
Agreement for Phase 1 was signed in October 2009. In addition, a total of

254,255 million yen has also been approved for Phase 2 of the Project, which
covers the Dadri-Rewari and Vadodara-Mumbai sections.
（３）Other Donors’ Activities
The World Bank (WB), under its Country Partnership Framework for India (forthe Period FY18-FY22), is promoting improved connectivity and logistics toenable increased industrial competitiveness and job creation. As part of this, theWB has provided assistance to the Mumbai Urban Transport Project (2002 and2010 approved, totaling US$848 million) and the Dedicated Freight Corridor
Project (2011, 2014, 2015, and 2022 approved, totaling US$2,970 million),among others.
The Asian Development Bank (ADB) has recently been pursuing a policy of
supporting the modal shift from automobiles to railways and decarbonization of
the transportation sector and has supported the Jaipur Metro (amount ofapproval: US$157 million (2013)) and the Bengaluru Metro Lines 2A and 2B(amount of approval: US$500 million (2020)), among others. ADB has also
provided support for Mumbai Metro Lines 2A, 2B, and 7 through co-financing withNew Development Bank （NDB） (ADB has committed US$926 million (2019)
and NDB US$260 million (2018)), Chennai Metro Lines 3, 4, and 5 (ADB hascommitted US$1,131 million (2022), NDB US$347 million (2022), etc.).
３．Project Description（１） Project Description① Project Objective
The Project aims to cope with the increase of freight transport demandin India by constructing new dedicated freight railway system, thereby
promoting comprehensive regional economic development along thefreight corridor, through improvement and modernization of inter-modal
logistic system handling considerable freight traffic and poised for
massive growth.
② Project Components(a) Civil engineering and construction work: roadbed improvement,
bridges, construction of structures such as freight stations and branch
stations, etc. (international competitive bidding (tied))(b) Track construction: Rail laying, etc. (international competitive bidding(tied))(c) Electrical and mechanical work: construction of overhead lines,
substations, etc. (International competitive bidding (tied))(d) Signaling and communication work: signal and communication
system maintenance, construction of automatic level crossing system(international competitive bidding (tied))(e) Rolling stock procurement ①: Electric locomotive (6,000 hp / 6axles) (to be manufactured and delivered by the Ministry of Railways ofIndia with its own funds)(f) Rolling stock procurement ②: Maintenance and inspection of vehicles,etc. (International competitive bidding (tied))(g) Consulting Services: Construction supervision, quality and safety
management, commissioning test assistance, review of manuals for
operation and maintenance, assistance in formulating and implementing
plans for operation and maintenance (including training programmanagement), implementation and management of environmental
management plan and resettlement monitoring plan, social development(public relations and social development (public information andawareness-raising activities, HIV prevention activities), etc. (short listmethod)
The areas covered by the ODA loan are through (a) to (d), (f) and (g)above.
③ Project Beneficiaries (Target Groups)
Regions served by the Project: Delhi, Haryana, Rajasthan, Gujarat, andMaharashtra (total population: about 500 million (2011 India Census).
（２） Estimated Project Cost
533,225 million yen (Japanese ODA loan of this tranche: 40,000 million yen)
（３） Schedule
October/2009 - November/2029 (242 months）
The commencement of services of all facilities (scheduled for November 2027)
is considered as the completion of the Project.
（４） Project Implementation Structure１） Borrower: President of India
２） Guarantor: N/A
３） Executing Agency: Ministry of Railways (MoR), Dedicated Freight
Corridor Corporation of India Limited (DFCCIL)
４） Operation and maintenance system: Indian Railways will possess theelectric locomotives, while DFCCIL will operate the electric locomotives aswell as operate and maintain the tracks and the signal and communication

system. It is planned that Indian Railways will maintain the electric
locomotives and work to produce them on its own. Once construction iscomplete, DFCCIL will be responsible for operation and maintenance ofthe main line and train operation and management facilities (track,signaling and communication systems), while IR, a subsidiary of the Indian
Ministry of Railways, will be responsible for freight operations, including
maintenance of electric locomotives.
（５） Collaboration and Sharing of Roles with Other Donors
１） Japan’s Activities:
As described in 2. (2), together with Phase 2 of the Project, which covers
the section between Dadri to Rewari and Vadodara to Mumbai, the Projectwill develop a 1,465km Western Dedicated Freight Corridor between Delhiand Mumbai.
The technical cooperation projects related to the Project include theFeasibility Study on the Development of High-Axle Load Multimodal
Dedicated Freight Corridors with Computerized Control for the DelhiMumbai and Delhi-Howrah Rail Routes (2006-2007), and the technicalcooperation project on the Assistance in Proof Examination for Running
Stability of Dedicated Freight Corridor Transportation (2008), andDedicated FreightProject(2015-2019)

Railway OperationandMaintenanceSupport２） Other Donors’ Activities:
The World Bank is supporting DFCCIL in the development of the EasternCorridor (between Ludhiana and Son Nagar). The World Bank is also
assisting DFCCIL in formulating project and marketing policies for theoperational phase, as well as a pricing policy for track rentals, which will
be a source of revenue for DFCCIL. These policies will also cover theJICA-supported Western Corridor.
（６） Environmental and Social Consideration
１） Environmental and Social Consideration① Category: A② Reason for Categorization:
The Project falls under one of the sensitive sectors (railway) and has
one or more sensitive characteristics under the Japan Bank forInternational Cooperation Guidelines for Confirmation of Environmental
and Social Considerations, published in April 2002 (“JBIC Guidelines”).

③ Environmental Permit
An Environmental Impact Assessment (EIA) report was completed inAugust 2009 and approved by the Ministry of Railways on August 13, 2009,
although such a report is not required for the Project under Indian law.
④ Anti-Pollution Measures
The anti-pollution measures taken by the contractors during theconstruction work include anti-dust measures, the proper storage ofconstruction materials, and the use of low-noise equipment among otherabatement measures in accordance with the environmental management
plan. The noise mitigation measures after the railway section is put into
service will include installing soundproof walls in built-up areas as needed.
Mitigation measures considered in the detailed design will be reflected in
the detailed environmental management plan, and the contractor will
implement measures in accordance with the plan.
⑤ Natural Environment
The Project area is mainly farmland or unused land, and the route will
detour any wildlife preserve. Thus, the adverse effects are expected to beminimal.
⑥ Social Environment
The Project involves the acquisition of 3,716 ha of land and theresettlement of 1,514 households. DFCCIL compensates the affected
residents at the repurchase price and provides support necessary forrebuilding their livelihoods in accordance with the MoR-approved
resettlement plan, as well as the entitlement matrix that has been revised
under the new land acquisition law. Land acquisition and resettlement
have been completed in April 2021.
⑦ Other/Monitoring
During the construction work for the broader project, the executing
agencies will, through the contractors, monitor the noise and vibrationlevels, soil, air and water quality, borrow pits, and vegetation, as well as
the land acquisition and resettlement processes. After the facilities are put
into service, the executing agencies themselves will monitor the noise andvibration levels, soil and water quality.
（７） Cross-Sectoral Issues:① Climate change response: This Project will contribute to the reduction ofgreenhouse gas (GHG) emissions by encouraging a modal shift from

freight transport by automobiles to rail transport. The total climate change
mitigation benefits (estimated GHG emission reductions) of this Project
are approximately 12.79 million metric tons of CO2 equivalent per year.
② Measures against infectious diseases: This Project is expected to involve
large-scale construction in a country where HIV/AIDS transmission is aconcern, where construction workers will be concentrated on the site,
and where the workforce involved in the Project is expected to include alarge number of mobile workers who live alone and are therefore
considered to be at high risk of HIV/AIDS transmission. For this reason,DFCCIL, the executing agency for this Project, has developed a safety,
health, and environment manual that includes HIV/AIDS prevention
measures, and has taken the necessary steps to ensure that contractors
cooperate with the above HIV/AIDS prevention activities in their bidding
documents and contracts.
（８） Gender Category■GI (Gender Informed)＜Details of Activities/Reason for Categorization＞
Since the Project did not finalize on setting specific initiatives and indicatorsthat contribute to gender equality and women's empowerment. However, theimplementing agency agreed on initiatives on a gender perspective, such as thepromotion of women's employment in construction work and the promotion ofwomen's employment within the implementing agency.
（９） Other Important Issues
The Special Terms for Economic Partnership (STEP) were applied to thepreceding portions (Phases 1 and 2) of the Dedicated Freight Corridor Project. In
these portions, Japanese technology was used in the tracks, the signal andtelecommunication system, and other components.
４. Targeted Outcomes（１） Quantitative Effects
１） Outcomes (Operation and Effect Indicators)
Indicator
Operation rate (%)

Baseline(2007）

Target(2029）【2 years afterproject completion】－93Vehicle running distance (in bothdirections) (1,000 km per day)
Number of transport trains (in bothdirections) (per day)Transportation volume (1 million tons/kmper day) /3
Maximum speed (km per hour)

37.9

75

100

Shortened transportation time (hour) /4－18.25

33
55.6

250.8
222
336.9

/1: Figures based on only the section subject to the Project (between Rewariand Vadodara).
/2: As to each indicator, the current figures based on conventional lines of the IR
are set as the baseline.
/3: Railway transportation volume, excluding road transportation volume andothers.
/4: The difference between the required time based on the current average speed
and that based on the average speed in the target year（２） Qualitative Effects:
Responding to freight transportation demand, improving the efficiency oflogistics networks, and promoting broad-based economic development（３） Internal Rates of Return:
Based on the assumptions listed below, the economic internal rate of return(EIRR) for the project is 19.91%, and financial internal rate of return (FIRR) willbe 4.26%.
【EIRR】
Cost: Project cost, operation and maintenance costs (excluding taxes)
Benefit: Effects of reduction of freight transportation costs in contrast to demandgrowth
Project life: 30 years【FIRR】
Cost: Project cost, operation and maintenance expenses
Benefit: Revenue from freight charges
Project Life: 30 years
５. External Factors and Risk Control（１）Preconditions: None

（２）External Factors: None
６. Lessons Learned from Past Projects
The ex-post and other evaluations of the Metro Manila Strategic Mass RailTransit Development Project (I), (II), and (III) in the Republic of the Philippines
indicate that when a public enterprise implements a Japanese ODA Loan project
and takes charge of the operation and maintenance aspects as well, special
attention should be paid to its financial sustainability and that comprehensive
assistance is needed to support the enterprise in improving its finances andstreamlining its management.
Learning from these lessons, the Project supports the comprehensive
strengthening of the operation and maintenance management system, including
the financial strategy to be developed by DFCCIL, as well as the development ofa plan to enhance the operation and maintenance management system as partof a Technical Assistance Project related to Japanese ODA Loan.
７. Evaluation Results
This Project aims to achieve efficient freight transportation by constructing new
dedicated freight railway lines and introducing a fully automatic signaling andcommunication system and high-power, high-speed electric locomotives toincrease freight transportation capacity, which is in line with India's agenda,
development policy, and Japan's and JICA's cooperation policies. In addition, thisProject is expected to contribute to the SDGs Goal 8 “Promote sustained,inclusive and sustainable economic growth, full and productive employment anddecent work for all “, Goal 9 “Build resilient infrastructure, promote inclusive andsustainable industrialization and foster innovation”, and Goal 13 “Take urgent
action to combat climate change and its impact”. Therefore, it is highly necessary
to assist the implementation of this Project.
８. Plan for Future Evaluation（１） Indicators to be Used
As described in Section 4.
（２） Future Evaluation Schedule
Ex-post evaluation: 2 years after the project completion
END
Appendix: Map of the Dedicated Freight Corridor ProjectAppendix
Map: Dedicated Freight Corridor Project(Created by JICA based on Google Map)