LUCKNOW METRO RAIL PROJECT

Construction of a 23km metro line and purchase of a fleet of about 80 metro cars in Lucknow, Uttar Pradesh, in northern India.

The proposed operation will be extended under the Own Risk Facilities (ORF), Climate Action and Environmental Facility (CAEF) for the 2014-2016 period. The project will contribute to the two main objectives of the EIB's external mandate: (i) climate change mitigation, by promoting modal shift from road to rail and thereby a reduction of greenhouse gas (GHG) emissions; and (ii) the development of social and economic infrastructure by making a key contribution to urban development, thereby improving the business environment for private sector development and facilitating access to amenities and jobs. The project is consistent with the EU country strategy paper for India which highlights the infrastructure gap and need to address rising GHG emissions. The project is consistent with the National Urban Transport Policy 2006 and Lucknow City Masterplan.

If situated in the EU, the project would fall under Annex II of the Environmental Impact Assessment (EIA) Directive and would therefore be subject to screening by the competent authority to determine whether a full EIA procedure should be undertaken. The federal competent authority has screened the project out in accordance with domestic legislation. The project has been subject to an initial environmental assessment and further steps in assessing and managing environmental risks are to be reviewed during appraisal. The project will require the acquisition of about 50ha of land and will entail permanent involuntary resettlement of some households/businesses plus generate some temporary road traffic disruption. Compliance with relevant EIB social standards will be reviewed.

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