BANGALORE SUBURBAN RAILWAY PROJECT

Promoter – Financial Intermediary

RAIL INFRASTRUCTURE DEVELOPMENT COMPANY (KARNATAKA) LTD

Location

• India

Description

The project will co-finance the construction of a new suburban railway network with 58 stations covering 4 dedicated rail corridors in Bangalore, spanning approximately for 149 km in total length.

Additionality and Impact

The project concerns the construction of a new suburban railway network in the greater Bangalore Metropolitan Area, comprising 4 interconnected rail corridors (of 149km length) incl. 58 stations and 2 depots. The project will upgrade public transport supply, connecting the city of Bangalore with suburbs and satellite townships.

By supporting the shift of traffic to a more sustainable transport mode, the project will reduce negative externalities of road traffic (noise and air pollution, greenhouse gas emissions, road accidents and congestion), improving travel times and costs. By providing safe and affordable

transport to more vulnerable groups, e.g. people with reduced mobility and women, further benefits are unlocked, for example more egalitarian access to jobs and study opportunities. The project contributes to a wide range of Sustainable Development Goals (SDGs), most notably climate change mitigation (viz. SDG 13) and urban infrastructure improvement (viz. SDGs 9 & 11). The project is aligned to the EU's Global Gateway and carried out under the Team Europe Flag. The project is consistent with the EU Country Strategy Paper for India (2018), the EU-India Strategic Partnership: A Roadmap to 2025, India's National Urban Transport Policy (2014) and Bangalore's own comprehensive Mobility Plan (2020). The project benefits from EIB's advantageous long-term funding, as well as the raising of social and environmental standards and technical advice.

Objectives

The aim is to contribute to the sustainable development of the Bangalore metropolitan region through low carbon and climate resilient urban infrastructure and improved access. The new suburban railway network will also improve the business environment for private sector development and facilitate access to amenities and jobs. The project is in line with the EU Country Strategy Paper for India which highlights the infrastructure gap and need to address rising greenhouse gas emissions. It supports two main objectives of EIB External Mandate: (i) climate change mitigation, by promoting modal shift from road to rail while reducing greenhouse gas emissions, and (ii) social and economic infrastructure development, by contributing to urban development.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 300 million

Total cost (Approximate amount)

EUR 1579 million

Environmental aspects

In India, metro projects do not fall within the scope of the relevant Environmental Impact Assessment (EIA) legislation unless the built up area is beyond a defined threshold, in which case the project is subject to screening by the State level Competent Authority. The status of screening, if any, is to be determined during appraisal. The project has in any case been subject to an environmental and social impact assessment. The further steps in assessing and managing environmental risks are to be reviewed during appraisal. Compliance with relevant EIB Social Standards is to be reviewed.

Procurement

The promoter has to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement.

Status

Signed - 14/06/2024