India: GreenCell Electric Bus Financing Project

OBJECTIVE

The Project objective is to promote scalable and replicable financing for the demonstration, deployment, and transfer of low-carbon e-bus vehicles with potential long-term greenhouse gas emissions savings.

DESCRIPTION

The Project involves financing the procurement of the 255 e-buses (including 5 spare buses) and the development of allied infrastructure including charging infrastructure.

ENVIRONMENTAL AND SOCIAL INFORMATION

Environmental and Social Policy. The loan will be co-financed with ADB as lead co-financier, and the project’s environmental and social (ES) risks and impacts have been assessed in accordance with ADB’s Safeguard Policy Statement (SPS). To ensure a harmonized approach to addressing the ES risks and impacts of the project, and as permitted under AIIB’s Environmental and Social Policy (ESP), ADB’s SPS will apply to the project in lieu of AIIB’s ESP. AIIB has reviewed ADB’s SPS and is satisfied that: (a) it is consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP, including the Environmental and Social Exclusion List and the relevant Environmental and Social Standards; and (b) the monitoring procedures that are in place are appropriate for the project. Given the nature and scope of the project activities, ADB has categorized the ES risks of the project as Category B for Environment, C for Involuntary Resettlement and C for Indigenous Peoples (which is equivalent to Category B if AIIB’s ESP were applicable). The proposed Project will have (i) general environmental and social impacts and risks which are minor, localized, reversible and temporary in nature.These impacts can be effectively managed using practical and mature mitigation measures. These impacts come from the development of allied infrastructure such as depots and charging stations, and the operation of e-buses, including thee management of waste from used batteries. The Sponsor, GMPL, has an Environmental and Social Management System (ESMS). A corporate audit on GMPL’s ESMS and an environment and social compliance audit on GMPL’s past and current performance against the objectives, principles and requirements of ADB’s SPS (2009) have been carried out. A Corrective Action Plan (CAP) has been agreed to address issues identified during the audit.  The audit has confirmed that GMPL has an EHS unit with staff members with experience in preparing ES related documents following international environmental and social requirements.

Social Aspects. Land requirements for depots would be leased by GEPL within existing bus depots. The land leased for the project and allied infrastructure will be from commercially owned land parcels. The land parcels requiring any physical and economic displacement will be eliminated during site screening. Hence, the project will not result in involuntary resettlement. The audit has also confirmed that the project does not have any legacy issues related to land, nor will it have any impact on indigenous people/scheduled tribes. The proposed Project is expected to generate largely positive social benefits to the overall population. As the civil works are minimal, and construction is to take place on existing bus depots, the construction period will remain short and, as a result, the impact, potential inconvenience on the surrounding residents' travel and local traffic is seen to be minimal.

Gender Aspects. The potential impacts of Project activities – both positive and negative - on women in the community were screened. In consultation with relevant stakeholders, measures such as staff awareness on gender equality have been included in the company’s policy to promote improved employment opportunities for women. Key gender-based indicators proposed are as followed:

• 3 bus depots completed, with women-friendly safety features
• All bus drivers and cabin hosts trained on safety response protocols with specific attention to women passengers’ safety
• Number of jobs provided to women during operation phase increased to at least 500
• A women’s leadership program at GMPL implemented
• GMPL’s new internship program for technical positions piloted with at least 10% of participants being women
• At least 3 awareness-raising activities on gender inclusive initiatives and practices (covering topics of women's safety features in vehicles, gender equality at work and zero tolerance to sexual harassment) for GMPL’s staff, contractors and business partners conducted.

Stakeholder Engagement, Consultation and Information Disclosure. Consultations in various forms, including interviews with key stakeholders and meetings with communities, was conducted as part of project preparation. ADB’s policy document ‘Initial Poverty and Social Analysis’ has been displayed on ADB’s website https://www.adb.org/projects/documents/ind-55288-001-ipsa. As part of the Corrective Action Plan (CAP), GEPL will establish a formal Stakeholder Engagement Plan/Enhanced Consultation and Participation Plan which should include stakeholder mapping, categorization of stakeholders and plans of how engagement will be undertaken with identified stakeholders during different phases of the project and on ongoing basis.

Project Grievance Redress Mechanism. GMPL has a documented procedure for project level grievance mechanism for affected communities as provided on their website. It includes the details of email-id & contact number to contact in case of any project related grievance. The audit assessed the existing Grievance Redress Mechanism improvements are included in the CAP to establish proper coverage of issues, such as those for construction activities and labor. Locally appropriate public consultation and disclosure processes are used to disseminate information about the GRM.