India: Chennai Metro Rail Phase 2 Project – Balance Corridor 5


Category A


USD438.75 million


April 7, 2020


The objective of the proposed Project is to provide increased capacity and efficiency of north-south mass transit connectivity through the center of Chennai.


The Project consists of construction of 26 km of elevated viaduct and 24 elevated stations and provision of related equipment and related facilities, for the balance corridor 5 portion of the north-south mass transit system in Chennai.

The following Project components will be financed by AIIB:

  • Component A: Construction of 26 km of elevated viaduct.
  • Component B: Construction of 24 elevated stations.
  • Component C: Utility Management.

Other components of this Project include:

  • Traction and power supply, track work, and telecommunication, electrical and mechanical works, which would be financed by Asian Development Bank (ADB); and
  • Signaling, lift and escalators, permanent way, platform screen doors, physical security instruments, land acquisition, resettlement and rehabilitation and environmental related costs, which would be financed from counterpart funds by the Government of Tamil Nadu (GoTN).

Total Project cost is expected to be USD708.64 million with AIIB financing USD438.75 million, the GoTN contributing USD155.88 million, and ABD financing USD114.1 million. This budget will be updated during project preparation, to reflect land acquisition, resettlement and rehabilitation costs.

The Project is related to another AIIB-financed project (000301 India: Chennai Metro Rail Phase 2 Project- Corridor 4), currently under preparation (Corridor 4 Project), which seeks to provide high capacity and efficient east-west connectivity through the center of Chennai by expanding the city's metro system, and for which co-financing by NDB and ADB is being considered.



Applicable Environmental and Social Policy. AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Standard (ESS) 1 (Environmental and Social Assessment and Management) and the ESS 2 (Involuntary Resettlement) will be applicable to the components financed by AIIB and GoTN. The Applicability of AIIB’s ESS 3 (Indigenous Peoples) will be further assessed during the subsequent stages of Project preparation. ADB’s Safeguard Policy Statement (SPS) will apply to the activities financed by the ADB. AIIB and ADB will seek a common approach to facilitate handling of environmental and social (ES) aspects under the Project, consistent with both the ESP and ADB’s SPS.

Categorization and Instruments. The Project has been assigned Category “A”, primarily due to land acquisition and associated social impacts. The Project will also have significant environmental impacts during the construction and operation phase. The Resettlement Policy Framework (RPF) prepared for the Corridor 4 Project will also be used for this Project, and the Environmental Impact Assessment (EIA) and the Social Impact Assessment (SIA) are being prepared to cover all components of the Project using the common approach to be agreed with ADB and GoTN. Due diligence will be conducted to identify and review the ES aspects of the associated facilities in the Chennai Rail Transit Network.

Environmental Aspects. The Project overall is expected to generate environmental benefits in terms of reducing automotive exhaust emission. Construction-related environmental impacts can be largely mitigated through appropriate construction related environmental safeguard management accompanied by site-specific mitigation measures. The Environmental Management Plan (EMP) will provide mitigation measures including institutional arrangement, schedule and budget for the implementation and its monitoring.

Social Aspects. Key social risks associated with the Project are related to land acquisition and physical and/or economic displacements. The Project will require acquisition of 15.12 ha of land, out of which 10.59 ha of land is under private ownership. There are 1,143 affected families comprising 4,001 Project Affected Persons (PAPs) along the corridor. The Project will affect a total of 354 structures, out of which 34 are residential, 233 are commercial, another 70 are combined residential and commercial structures and 17 are designated as “other structures”. The figures will be finalized following the completion of detailed designs, which will determine the actual measure of land to be affected and total number of PAPs. The potential impact of Project activities on women in the community will be assessed in the SIA, and a stand-alone Gender Action Plan (GAP) will be developed. The SIA, including the Resettlement Action Plan (RAP) and the Entitlement Matrix, will be prepared by Chennai Metro Rail Limited (CMRL) and reviewed by AIIB to confirm compliance with the ESP.

Stakeholder Consultation and Information Disclosure. Consultations will be held during the preparation of the EIA and SIA. Based on community feedback, both EIA and SIA will be finalized. The consultations will continue during the Project implementation. The draft English versions of EIA and SIA and English and Tamil versions of the Executive Summaries of the EIA and SIA will be posted on CMRL’s and AIIB’s websites and made available in hard copies in the Project area.

Project Grievance Redress Mechanism (GRM). A multi-tier Grievance Redress Mechanism (GRM) will be constituted for the overall Project in line with the requirements of AIIB and ADB, building on the existing complaint mechanisms within CMRL. Communities and individuals who believe that they are adversely affected by the Project will be able to submit complaints to the Project-level GRM for their resolution.


Wenyu Gu

Senior Investment Operation Specialist-Transport


Prasanna V. Salian

Deputy Secretary,
Department of Economic Affairs,
Ministry of Finance
Government of India


Pradeep Yadav

Managing Director
Chennai Metro Rail Limited

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