Project: Scaling up of electrified transport ecosystem in Kakinada, India
State of development: Current
Stage of development: Final negotiations
Stage notes: Scale Up
Type of instrument — Impact Bond: ; Outcomes Fund: ; Social Impact Incentives (SIINC): ; Social Impact Guarantee: ; Payment-by-results (no pre-financing): ; Technical Assistance and Market-building program: Yes; Other: 
Rationale for using outcome-based finance: Kakinada E mobility project was focused on tangible outcomes and innovation which has resulted in several firsts. The first woman E3W driver in the city, first E3W retrofit, comprehensive EV skill building, first city in Andhra Pradesh to have a dedicated E mobility portal are some key milestones achieved by the project. These initiatives require scaling to the next level to achieve climate impact while ensuring just energy transitions, which is prime focus of this funding. Under this project, innovative yet financially sustainable approaches which have not been explored adequately in other cities of India have been taken up such as mass retrofitting of autos, formation of self-sustaining womenâs auto cooperative society and partnerships with urban local bodies on micro-mobility. The outcomes from this project will serve as case study for other cities in state to adopt similar strategies.
Key challenges to launch: "Implementation gap: Implementation hinges upon availability of funding. As funding for Kakinada e-mobility project has concluded from FCDO, it leaves a gap in financial resources required to sustain and expand the project's efforts. Our experience from the previous project has shown that focusing on retrofitting three-wheelers could be a major change for the city. This is because of the high demand, lower costs, and the significant number of people in the city who are in the Below Poverty Line (BPL) category. Impact can also be amplified by implementing electrified small format vehicles (micro-mobility with âmobility as a serviceâ model). The foundational work which has been done by RTI needs to be scaled up through outcome-based funding along with establishing partnerships with private sector entities.
Institutional set up: The establishment women's cooperative, necessitates specialized knowledge and support. These endeavors demand focused handholding to ensure their successful formation and operational efficiency."
Social/developmental challenge: The project aims to tackle a range of urgent issues:

Increasing Urbanization and Vehicle Numbers: Kakinada's urbanization is evident in its 7.45 lakh registered vehicles (2018) growing at 9.1% annually. 
Polluting Diesel and Petrol Autos: Lack of clean and efficient public transport, with around 3000 conventional autos in the city and 2500 plying in the surrounding areas, reliance on polluting fuel remains a pressing concern.
Limited Income Opportunities for Women: In this tier-3 city, female workers' limited income (20-30% less than men) restricts their financial growth.
Gender Inequality and Inequities: Gender-based barriers hamper women's engagement in sectors, evident from low rural female labour participation in the city.
Limited Financial Access: Auto drivers face challenges to provide downpayment owing to lack of credit history. Our project focuses on enabling financing for retrofits.
Expected intervention model: Building upon our prior work in 2021 and 2022 and learnings gained, our project aims to advance the groundwork for introducing electric mobility in Kakinada district of Andhra Pradesh.
This project will concentrate on the following key areas:
a)	Enabling retrofitment of E3Ws: Scaling our retrofit pilot, a comprehensive plan to retrofit all old diesel autos in the district will be created. Co-funding options for retrofitting will be identified.
b)	Municipal Fleet Electrification & micro-mobility: We will prepare Detailed Project Report and provide bid advisory guidance for electrification of municipal cargo fleet. Micro-mobility implementation plan will be prepared and a public-private partnership with technology providers and Kakinada Smart City Corporation Limited (KSCCL) will be initiated.
c)	Building Vahanam 2.0 version: Existing E-Vahanam Electric Vehicle (EV) portal will be upgraded to incorporate an urban mobility calculator and dashboard to help KSSCL to make informed business decisions on planning, siting and implementing charging stations.
d)	Women's Cooperative for Entrepreneurship: A women's cooperative will be established to foster income-generation avenues and facilitate early-stage funding for women entrepreneurs (E3W drivers).
This effort aims to facilitate Kakinada's transition from conventional transportation to a sustainable transport ecosystem.
Policy sectors — Employment and private sector development: No; Education: No; Social protection: No; Criminal justice: No; Health: No; Agriculture: No; Environment and climate change: Yes; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: No; Other: 
Primary SDG goal: 8,13
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: Yes; Upper-middle-income: No; High-income: No
Notes: Data for this pipeline project was last updated in August 2023
Delivery location: India