Uttarakhand Power Sector Investment Program (Tranche 4 and Multitranche Financing Facility)

For a project that involve
associated infrastructure that are not part of the project scope (although serves as a prerequisite
to the project outputs such as a planned power plant to which the transmission lines under the
project will be directly connected), it is critical to conduct more thorough and in-depth due diligence
work to evaluate the feasibility and the uncertainties associated with the realization of such nfrastructure. Where possible, loan disbursements and procurement activities should be
approved after adequate risk mitigation measures are in place. This will help abate the risks of
loan proceeds being used unproductively, as well as the incurred financing charges and interest
during construction on the borrower.