Environmental

When a project provides substantial climate mitigation and environmental benefits, a project economist with strong background and experience in environmental valuation method can undertake the project economic analysis at appraisal. Usually, energy efficiency improvement projects have very low pay back periods and high economic internal rate of return. ADB should investigate the ways in which it can formalize the use of carbon prices in energy efficiency project economic analysis.

A proper evaluation and approval process during project implementation can reduce noncompliance issues during the safeguard assessment. Updates to safeguard documents need to be timely completed to avoid implementataio disruptions. For example, the government land considered during project design for the construction of a substation had to be changed to private land. However, the resettlement plan was not updated.

ADB’s ability to effectively monitor safeguard and technical due diligence issues arise when the loans are financially closed before works are completed.

Urban development projects typically involve a variety of risks in the course of its implementation and execution of activities. Formulating appropriate project design and risk assessment during preparatory phase is critical to minimize start-up and implementation delays. This includes a systematic appraisal of the project’s technical scope and engineering design, project cost and contingencies, environmental and social safeguards, and financial and contractual risks.

The process of obtaining forest and wildlife clearance approvals in India is lengthy and complex and this should be factored into the project implementation timelines both at the design stage and while processing the scope extension. The compliance risk can be mitigated through advanced action by the implementing agency in managing land acquisition, forest clearance, and resettlement issues. The compliance with safeguards requirements should be linked to commissioning as retrofitting after transmission assets become operational poses challenges.

In selecting subprojects and project timelines, it is important, right at the design stage, to consider the Implementation complexity, experience of the executing agency, availability of specialized contractors, and available working season. Delays in the execution of subprojects under this tranche occurred due to adverse weather conditions at construction sites and the difficult work terrain.

Unclear or lack of institutional arrangements and inappropriate deployment of consultants are a serious deterrent to the systematic Implementation of environmental management plans and social safeguards.

India's policy on land acquisition needs an amendment in cases where sufficient land for improvement is not voluntarily available. This would allow for permission te be granted outside the scope of the policy, as necessary. As of 2022, the Prime Minister’s Rural Roads Program (PMGSY)is being implemented with no land acquisition. Where land is required, only voluntary-based possession is allowed. If sufficient land cannot be pooled on a voluntary basis, a geometric design is used as a compromise. However, these locations may become accident black spots.

Adequate and competent social and environmental safeguards staff need to be onboard throughout a project's life to ensure effective Implementation of safeguard requirements.

Climate risks such as monsoon and weather conditions need to be considered in drawing up implementation schedules.