Ex-Ante Evaluation (for Japanese ODA Loan)
South Asia Division 1, South Asia Department, JICA
1. Name of the ProjectCountry: India
Project: Kolkata East-West Metro Project (IV)L/A signing date: March 26, 2021
2. Background and Necessity of the Project(1) Current State and Issues of the Urban Transport 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), yet thedevelopment of public transportation infrastructure has not progressed andtraffic jams due to increasing demand for road traffic have been a serious
problem in major cities such as in 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 “MetroRail 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.
As of 2011, the Kolkata metropolitan area is India’s third most overpopulated
city (after Delhi and Mumbai) with a population density of approximately 13,000
people per square kilometer. Public transportation depends heavily on roadtraffic, with 49% of traffic using public/private buses and 24% using automobiles,and the share of track-based rail transportation (suburban railways and trams,etc.) limited to 22%. Also, like India as a whole, the number of registeredautomobiles has also been increasing (from around 660,000 in 2001 to
approximately 1.4 million in 2015), so the average vehicle speed on major urban
roads is 18 km/h (as of 2014), with intensified traffic congestion (ranking 7th outof 278 cities in Asia as of 2019). In addition, like other metropolises such as
Delhi and Bengaluru, the transport sector accounts for a significant volume ofCO2 emissions, with PM2.5 readings measured at around 7 times higher thanWHO standards, leading to a deteriorated urban environment and reports ofassociated health hazards.
The Kolkata Metropolis Traffic Improvement Master Plan formulated by theWest Bengal State Government in 2001 in view of recent economic growth puts

emphasis on the construction of a mass transportation system for the purposeof promoting the shift from road traffic to rail transit, in order to deal withincreasing traffic volume and aggravating environmental problems, andaccordingly, the East-West Metro Project in Kolkata (hereinafter referred to as“the Project”) is positioned as a priority project in India’s urban transport sector
to deal with increasing transport demand by constructing a mass transportation
system in the Kolkata Metropolitan area, West Bengal State.
(2) Japan and JICA’s Urban Transport Sector Policy and the Positioning of theProjectCountry Assistance Policy for India (March 2016) formulated by theGovernment of Japan sets “enhancing connectivity” as a priority area and statesthat with a view to de-bottleneck the infrastructure constraints to investment andgrowth, Japan will support development of transportation hub and network
infrastructure in the areas of railways (including high speed railways and metros)
to strengthen connectivity among major industrial cities and economic zones aswell as regional connectivity. “Strengthening industrial competitiveness” throughurban foundation maintenance, etc. is also set out as a priority area forassistance, together with the promotion of transportation infrastructure, etc. inmajor metropolitan areas by constructing metros, etc. with the aim of mitigating
traffic congestion, optimizing passenger/freight transport and improving theurban environment, etc. Also, in order to eliminate the bottleneck in economic
growth, the JICA Country Analysis Paper for India (March 2018) provides ananalysis that, mainly in the industrial agglomeration areas such as special
economic zones and economic corridors located in the six major metropolitan
areas in India including Kolkata and the Delhi – Mumbai Industrial Corridor,cooperation for measures to deal with environment and climate change issues
are being promoted as a means of support continuous, comprehensive growth,and it is necessary to promote regional economic development facilitation andlogistics optimization, and to support infrastructure development includingarterial 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 fosterinnovation), Goal 11 (Make cities inclusive, safe, resilient and sustainable), andGoal 13 (Take urgent action to combat Climate change and its impacts) of theSustainable Development Goals (SDGs), so the Project’s implementation ishighly necessary.
(3) Other Donors’ Activities
There has been funding from the World Bank for Mumbai Urban Transport
Project (approved in 2002 and 2010, total of USD 972 million) and the EasternDedicated Freight Corridor Project (approved in 2011, 2014 and 2015, total ofUSD 2,725 million). There has also been support from the Asian Development
Bank (ADB) for the Jaipur Metro Rail Project (approved in 2013, USD 157
million), and cooperative financing with the New Development Bank for theMumbai Metro Rail System Project (Line 2A, 2B, 7; approved in 2019; approved
amounts of USD 926 million from ADB and USD 260 million from co-financing).
For the Kolkata East-West Metro Project, however, there is no assistance fromother donors.
3. Project Description(1) Project Objective
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 (population: approx. 15million)(3) Project Components
1) Civil works (total length of approx. 16 km, underground section of approx.
10 km, elevated road section of approx. 6 km, 12 stations)2) Railway track construction3) Electrical/mechanical work4) Signal/communication work5) Automaticfare collectionsystem
6) Station equipment-related
7) Procurement of rolling stock (84 cars)
8) Depot construction9) Tunnel ventilation system
10) Station environmental management system
11) Consulting services (basic
design/bidding assistance/construction
supervision, etc.)
The fields covered by the ODA loan are civil works in the underground sectionof 1), the signal/communication system 4), the automatic fare collection system5), electric parts necessary for rolling stock in the procurement of rolling stock7), the tunnel ventilation system 9), the station environment management
system 10), and consulting services 11).
(4) Estimated Project Cost
135,606 million yen (Yen Loan Amount of this tranche: 9,091 million yen)(5) ScheduleMarch 2008 to June 2022 (172 months in total). The commencement ofoperation for all the lines (February 2022) 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 (hereinafter“KMRCL”
4) Operation and Maintenance Agency: Operation and maintenance after theproject completion will be taken over by the Metro Railway, Kolkata(hereinafter “MRK”), a department of Indian Railways, where some board
members are working concurrently with KMRCL.
(7) Collaboration with Other Schemes and Donors
None.
(8) Environmental and Social Considerations / Cross-Sectoral Issues / GenderCategory
1) Environmental and Social Considerationi) Category: Aii) Reason of Categorization: The Project falls into the railway sector andthe influential characteristics, both being listed in the “Japan Bank forInternational Cooperation Guidelines for Confirmation of Environmental
and Social Considerations” (established in April 2002).
iii) Environmental Permit: Although preparation of an Environmental
Impact Assessment (EIA) Report regarding the Project is not required
under the domestic law in India, an EIA Report was prepared by theKMRCL and approved by the Environmental Department of West
Bengal State in November 2006 based on the provisions of WestBengal State. Thereafter, revised versions of the EIA report wereprepared in September 2007 and February 2017. (Approval of revised
versions of EIA is unnecessary.)iv) Anti-Pollution Measures: There are planned measures to reduce noise,such as installing soundproof walls/soundproof pads. Regarding theimpact on the ground during construction, loose ground and the inflow
of groundwater will be prevented by adopting the shield construction
method. Ground was softened in an area where there was an accident
during tunnel construction, but the KMRCL stabilized the ground bymeans of immediate grouting and other measures. Note that theenvironmental management plan has been formulated with the supportof consultants 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 with those who are subject to land acquisition/resident
relocation, and the procedures for land acquisition/resident relocation
are to be completed by September 2018 based on the Land Acquisition
Law and the resident relocation plan prepared by the KMRCL. Note that
there was no particular dissenting opinion on the Project confirmed
during the stakeholder consultations.
vii) Other/Monitoring: In the Project, the contractors monitor noise, airquality, water quality, groundwater levels, and the KMRCL monitorsland acquisition/resident relocation during construction, and noparticular problems have been confirmed. MRK will monitor all of theseafter the commencement of the service.
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 mitigationeffect of the Project on the climate change (rough estimate of GHG
emission reduction) is forecast to be about 42,000 tons/year of CO2
equivalent (as of 2027).
ii) Consideration for Disabilities: In accordance with the domestic laws inIndia, 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 staffs including
station staff and train crew is planned.
iii) Countermeasures for Infectious Diseases such as AIDS/HIV: It has
been confirmed with the KMRCL that contracts with construction
businesses include implementation of AIDS countermeasures such asactivities to make workers aware of prevention, etc.
Moreover, at the time of screening, the KMRCL agreed to a list ofmeasures that must be taken when formulating projects andimplementing projects (total of 36 items) to control COVID-19 infections.
Items include the formulation and thorough adherence to behavior

patterns for preventing infections, providing contractual consideration
for contractors when infections increase, etc.
3) Gender Category:■GI(S) (Gender Activity Integration Project)
Activity Description / Reason for Classification:
In the Project, measures such as introducing women-only cars, setting
priority seats for passengers needing assistance (including women), andinstalling 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 management position of project implementation, so it
is categorized as a Gender Activity Integration Project.
(9) Other Important Issues: N/A4. Targeted Outcomes(1) Quantitative Effects
1) Outcomes (Operation and Effect Indicators)

Indicator

Baseline(2007)

Target (2024)(2 years after Projectcompletion)

Operating rate (% / year)—
89.40
Running distance (thousand km /—27.59day)
Number of running train—
213(number of running trains /day)
Volume of transportation—
3.15(million passengers-km / day)Income from passenger (million—
9.09
rupees / day)(Section: Howrah Maidan Station – Salt Lake Sector-V Station)(2) Qualitative Effects
Mitigation of traffic congestion in the Kolkata metropolitan area, improvementof urban environment through mitigation of traffic pollution by means of modal
shift, improvements in convenience through punctuality in scheduled travel
times, economic development of the Kolkata metropolitan area, and promotionof societal advances for women.
(3) Internal Rate of Return
Under the following preconditions, the Project’s Economic Internal Rate ofReturn (EIRR) and the Financial Internal Rate of Return (FIRR) of the Projectwill be 11.0% and 1.6%, respectively.

[EIRR]
Cost: Project cost, operation and maintenance costs (both excluding tax)
Benefits: Shortening effect on traveling time for the users of subway androads, reduction of vehicle maintenance costs for road users, reduction ofmaintenance costs for road traffic infrastructure, traffic accidents decline andemission reduction effect of environmental pollutants.
Project Life: 30 years[FIRR]
Cost: Project cost, operation and maintenance costs (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: None
(2) External Factors: None
6. Lessons Learned from Past Projects and Application to the Project
Important lessons were obtained from the ex-post evaluation (evaluation year2010) of the “Delhi Mass Rapid Transport System Project” ODA loan for India,
namely that it is desirable to promote efficiently operating public transportation
systems as a whole by mutual cooperation of public transportation systems toconstruct systematic urban transport rather than the competing relationshipamong them, and that it is important to establish a financially independent project
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 Transport Department,
Government of West Bengal will take place so that the subway line is notcompeting with the bus route. In addition, MRK is engaged in strengthening its
financial structure by implementing relevant businesses such as stationcommercial areas and station-front areas.
7. Evaluation Results
The Project aims to cope with the increase of traffic demand in the Kolkata
metropolitan area by expanding the mass rapid transportation system, thereby
promoting regional economic development and improving urban environment,
through relief of traffic congestion and decrease of pollution caused by increasing
motor vehicles, and is consistent with the development issues and policies ofIndia and the assistant policies and analysis of the Government of Japan andJICA. 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 the 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 completion
END